Considerations for Effective & Respectful Employee Terminations

No matter how challenging an employee is or how poorly they fit with your organization, telling someone that they are out of the job is never easy. Decisions about employee terminations should never be taken lightly, should be planned appropriately and should be handled with courtesy and respect for the employee and those with whom they work.

Here is a scenario we often hear: “We have an employee. He’s been here a while but it’s not working out. We want to let him go soon, like, today. What’s the best way to do it so we don’t run into any problems?”

While this is a common question that we get asked about employee terminations, the answer is rarely simple. There are many considerations to take into account and sometimes an immediate termination of employment isn’t the correct course of action. Typically questions we would ask in a situation like this include:

Is the reason for wanting to let the employee go, in part, or in full, due to their performance?
What is the employee doing that is problematic? Is it a skill/competence issue or something else?
Was the employee advised of relevant company policies and procedures? Are you sure the employee understood those policies and procedures?
Was the employee properly trained? Did the employer provide opportunities for training, coaching, development and mentoring to the employee?
Were performance expectations and metrics clearly defined and communicated to the employee?
Did the employee understand and agree with how their performance would be measured?
Did the employer provide performance feedback regularly and in a timely manner so that the employee knew what was expected of them, where they were doing well, where their performance was falling short, and what they needed to improve?
If employee performance is a concern, did the employer communicate what the consequences or outcomes could be if performance does not improve?
Are there extenuating circumstances which could be leading to performance decline (e.g. medical issues, disability, toxic work environment, bullying/harassment at work, etc.)?
If performance decline could be due to a disability, have you met your obligations for the duty to inquire and the duty to accommodate?
Does the employee want to continue working with the company or are they ready to move on? Would a “mutual parting of the ways” be a better option than an employer-initiated termination?

For most non-union workplaces, an employer has the right to terminate employment at any time, for any reason, as long as it’s not a discriminatory reason and as long as the employer provides reasonable notice of the end of employment. The employment contract should have a clause which lays out the notice period or severance to be provided in the event of a termination of employment. These terms must meet or exceed employment standards legislation requirements.

However, as we often tell our clients, just because you have the right to do something, doesn’t mean it’s the right thing to do.

Terminating employment without providing a reason or without forewarning, while allowed, isn’t necessarily the right way to go. Ending someone’s employment because they aren’t performing, but never having shared with them the performance concerns, rarely ends well. When deciding whether it’s the right timing for an employer-initiated employee termination, it is important that the employer look at whether they did all that they could to help the employee succeed. Regular training, coaching and communication are critical to ensure employee success.

Normally, if termination is due to performance, it shouldn’t come as a surprise to the employee. There should have been numerous conversations and discussions with the employee where the manager has shared concerns and feedback, where clear performance objectives are clarified, and where the employee is made aware that if their performance doesn’t improve, their job could be in jeopardy. The last thing you want is for the employee to say “I had no idea my performance was a problem. Why didn’t you tell me? I thought I was doing a good job!”

Sometimes, the graceful exit approach may be a better option. If the employer is unhappy with the employee’s performance, it’s often that the employee is unhappy as well. Have an open, heart-to-heart conversation about whether you’ve reached the end of the road in the employment relationship. If so, it may be possible to agree to a mutual parting of the ways, where both sides come to the conclusion together that the fit isn’t good and that the employment relationship should come to an end. It would still end up being a termination of employment; however, if it’s a solution that both parties agree upon, it’s a much more graceful exit and allows everyone to walk away with their heads up high.

Our best advice about employee terminations is to make sure you have properly considered the items identified above and, if termination is the next step, then treat the employee as respectfully as possible. Consult with legal advisors to ensure your working notice or severance is legally compliant. Have as a goal through the process to have the departing employee still be a champion for the company even after they no longer work there.