The Top 5 Mistakes Employers Make When Terminating Employees

Burke Costanza & Carberry Expands with New Office in La PorteCommunity invited to Open House and Ribbon Cutting October 22 La Porte, IN — Burke Costanza & Carberry is excited to announce the opening... Attorneys Kevin Steele and Bryan Bott obtained a reversal of a court’s finding of contempt against their client, a financial institution. On August 26, 2025, the Indiana Court of Appeals reversed a finding that the financial institution was in... Attorney Kalle Sears recently shared some important insights about AI and Wiretap Law with Building Indiana Business. Check it out in the latest issue of Building Indiana Business magazine. The employer-employee relationship is a power dynamic that can often involve emotions.

When an employee is terminated it is important for cooler heads to prevail in order to avoid litigation. Below, are five common employer mistakes (out of many!) to avoid if you want the separation to go smoothly as possible. An easy way to get yourself into litigation trouble is not following through on the policies and procedures outlined in the employee handbook. It may not be a contract, and it might say you have the authority to escalate proceedings at your discretion, but if your handbook outlines progressive discipline and you jump straight to termination— there... It is much better for you to know your policies and follow them. Only escalate if absolutely necessary.

This is especially important when you have a larger business. You need to show consistent practices across all your employees when handling problems. If you give one employee a slap on the wrist but terminate another for the same behavior, you’re putting yourself in a position to be sued for discrimination. When you do need to escalate, it’s important not to fall into the other traps outlined below. If an incident arises between employees or between an employee and a customer, you should always do an investigation, either internally or with a neutral party in order to get all the facts. You should talk to all involved employees and anyone else who may be able to shed some light on what happened.

Adding a neutral investigator to the mix could be helpful especially in cases where two or more employees are having problems with each other. Navigating the delicate process of employee termination requires tact, preparation, and a keen awareness of both legal and personal considerations. Here are five mistakes we see employers make during the termination process: Avoiding these pitfalls can help employers conduct terminations more effectively, reducing the risk of legal challenges and maintaining a respectful and professional relationship with the departing employee. Terminating an employee is never easy—and it shouldn’t be. As HR professionals and seasoned leaders, we should never become desensitized to the gravity of ending someone’s employment.

Whether in a nonprofit or for-profit organization, the principles remain the same: terminations must always be handled with compassion, dignity, ethical responsibility, legal compliance, and respect. This approach not only honors the individual, but it also reinforces the organization’s culture and values. While no termination is simple, avoiding common missteps can make the process smoother and more professional. These five essential tips will help you sidestep the most classic firing mistakes. Emotions have no place in a termination meeting. Frustration, guilt, or anger can escalate the situation or lead to regrettable missteps.

Stay professional, composed, and focused on the facts, regardless of the employee’s reaction. No employee ought to be blindsided by their termination. Performance concerns, behavioral issues, or policy violations need to be addressed well before the final decision through documented feedback and corrective action. If an employee is shocked by their termination, the organization has failed to communicate effectively. Terminations can be legal minefields if the wrong words are used. Your message must be clear, factual, and concise.

While it may be challenging, avoid unnecessary apologies, justifications, or offhand remarks that could be misinterpreted later. Stick to the facts and the decision at hand. Clear, factual communication ensures a confident and legally sound process. Employers often wonder, “I can terminate an employee for any reason, because they are ‘at-will’, right?” While that may be partially true (you cannot terminate someone for a discriminatory reason), there are often ways you can plan ahead for a smoother termination and improve the subsequent discussions/submissions. Mistakes are often made, but many termination mishaps can be avoided with a little planning and knowledge.

1. The employer doesn’t examine prior documentation. It is crucial that an employer review any documentation that relates to the employee, including performance reviews and contracts. While an at-will employee can be terminated for any reason that’s non-discriminatory, it becomes problematic, for example, if an employee is told he is being terminated for poor attention to detail when he has... The employer might also discover that the employee has a contract stating that he is entitled to severance pay unless there is a termination for “cause.” Practice Pointer: Examining documentation before the termination meeting will position the employer to better articulate and possibly adjust the termination reason.

2. The employer doesn’t properly investigate the facts upon which the termination is based. Even if an employer has credible evidence that an employee has exhibited poor judgment in a particular situation, it’s a mistake to terminate without getting his or her side of the story. The employer is not able to make a determination regarding what really happened, or to assess the employee’s credibility, if the employee isn’t questioned. D. Albert Brannen | September 03, 2015 .sharemobilecontentpage { font-size: 18px; font-weight: bold; color: #0045A4; display: inline-block; padding-top: 2px; margin: 0 0 20px; display: none; } .sharemobilecontentpage a { display: inline-block; height: 38px; margin: 3px...

The majority of employment-related lawsuits against employers arise after the employment relationship ends. This article outlines some common mistakes that employers make in terminating employees in hopes that employers can improve the way they terminate employees and avoid the expense and interruption of litigation. Employers are expected to be objective, level-headed and rational in making employment decisions. One of the worst things an employer can do is to make a quick, emotional decision to end an employee's employment. Suspending an employee pending termination is often an effective way to take the emotion out of a situation and give the appearance of due process. It allows the employer to reflect on the circumstances and make a better, more defensible decision.

Employers have employee handbooks so employees know the terms and conditions of their employment and what they can expect from the employer. Handbooks help to systematize and communicate work rules and disciplinary procedures. Union contracts or employment contracts may also contain agreed-upon procedures or requirements for terminating an employee's employment. Hire talent fast and set them up for success. Get an HR expert backing you through any process. Benchmark, manage and track your people.

Streamline leave and payroll management. Topical HR articles, useful tips and product updates Terminating an employee is a serious decision, and when done improperly, it can lead to wrongful termination claims that cost employers thousands or even millions in legal fees, settlements, and reputational damage. For employees, these mistakes often result in lost income, emotional distress, and a prolonged legal battle. In this article, we’ll break down the most common mistakes employers make that lead to wrongful termination claims, how to avoid them, and what employees can do if they suspect their rights have been... Wrongful termination occurs when an employee is fired in violation of state or federal law, public policy, or an employment contract.

While California is an “at-will” employment state, meaning employers can terminate workers for almost any reason, there are important legal exceptions. Discrimination is one of the top causes of wrongful termination lawsuits. Federal and state laws prohibit firing employees based on: Example: An employee is terminated after returning from maternity leave. If performance was not an issue, this could be a clear case of pregnancy discrimination.

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