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How to fire an employee, step by step

The research companion to this guide is clear: how you let someone go matters as much as why. This checklist turns that into steps you can follow on the day, from the file you prepare to the words you use.

Before the meeting

1. Check the reason

  • Is it job-related: performance, conduct, attendance or a real business need?
  • Was the problem raised before, in writing, with a fair chance to fix it? (Serious misconduct such as theft, violence or harassment can be the exception.)
  • Would you make the same call for anyone else who did the same thing?

2. Check the red flags

In the last six months, has this person complained about treatment, asked for an accommodation, taken medical or family leave, filed a workers’ compensation claim or reported a safety or legal problem? Are they pregnant, or recently returned from leave? Do they have a contract, or are they also a part-owner? If any answer is yes, talk to an employment attorney before you act. Retaliation is the most common charge filed with the EEOC.

3. Gather the file

Job description, written warnings, review notes, examples with dates, and the employee’s responses. You will not hand this over in the meeting, but it is what your one-sentence reason rests on.

4. Prepare the exit

  • Final pay calculated to meet your state’s deadline, including any earned pay your state requires.
  • Benefits information: when coverage ends and how to continue it (COBRA for plans at employers with 20 or more employees; many states have their own rules).
  • State notices: some states require written notices at termination. New York requires a letter within five working days with the termination and benefit end dates; California requires a written notice and a state unemployment pamphlet. Check yours.
  • Property list: keys, tools, vehicle, cards, devices, uniforms.
  • Access list: email, software, building codes, bank or vendor accounts, social media logins.

5. Plan the meeting

Private, in person (or a video call for remote staff), early in the week and early in the day so the person can start planning. Ten to fifteen minutes. If you have a manager or partner, have them sit in as a witness. Never by text, email or social media.

In the meeting

Lead with the decision, give the reason in one or two sentences, explain what happens next, and end. Do not debate the decision, and do not apologize for it. Do treat the person with respect.

Open: “Thanks for meeting with me. I have a difficult decision to share, and I want to be direct with you: today is your last day with [business].”
Reason: “The reason is [one or two plain sentences, the same reason you raised in [month] and [month]].”
Final: “This decision is final, and I’ve thought it through carefully.”
Next steps: “Your final pay of [amount or how it is calculated] will be [handed to you today / paid on date]. Here is the information on your benefits and when they end. I’ll need [keys, laptop, card] before you leave, and I’ll send you a written confirmation by email today.”
Close: “I appreciate [one genuine strength]. I wish you well.”

What not to say

  • Anything about age, health, pregnancy, family plans, religion, race or any other protected trait.
  • “This is hard for me too.” It centers you.
  • A different reason from the one in the file, or several new complaints the person never heard before.
  • Promises you may not keep, such as a glowing reference or rehire.

The same day

  • Close account access during or right after the meeting.
  • Collect company property, or arrange its return in writing.
  • Send a short written confirmation: last day, final pay, benefits end date and any state-required notice.
  • Write down what was said in the meeting, with the date and who attended. Keep it in the file.

After

  • Tell the team briefly the same day: “[Name] no longer works here. [Name] will handle [their work] for now.” Do not share reasons.
  • Unemployment claim: answer the state agency honestly and on time.
  • References: decide a policy and stick to it. Many businesses confirm dates and title only.
  • Fix the cause: unclear expectations, no reviews or no written procedures are the usual roots.

If it is family or a close friend

Same steps, same standards, plus four extras: name the two hats out loud (“I’m talking to you as the owner”), get an outside second opinion first, tell them before anyone else in the family hears, and check any ownership agreement with an attorney. The full approach is in our research paper Fire Well.

This guide is general information, not legal advice. Employment rules vary by state. Groundwork is not a law firm; talk to an employment attorney before any termination with red flags.

Published by Groundwork Business Advisory. Updated October 18, 2026.

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