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4 tips to terminate employment and minimize legal issues

On Behalf of | May 13, 2025 | Employment Litigation |

Terminating an employee is one of the most challenging tasks for any HR professional, especially in large organizations where policies, legal risks and team morale all come into play. A poorly handled termination can result in legal disputes, damaged reputation and disrupted workflows.

With the right approach, companies can manage employment separations fairly and confidently. Following a clear process allows HR teams to minimize complications and support both the organization and the departing employee.

1. Clearly document the reasons for termination

Every decision to end employment should be based on a documented record of performance issues, policy violations or other relevant concerns. Performance evaluations, written warnings and communications provide critical support for the decision. Records should be consistent, dated and stored securely.

2. Follow a structured termination process

Having a consistent step-by-step approach helps reduce misunderstandings. Begin by reviewing the employee’s file and company policies. Prepare a termination letter and choose a private location for the meeting. Keep the conversation brief, respectful and to the point. Invite a manager or another HR representative to be present during the discussion.

3. Provide final payments and required notices

All final pay, unused leave and other compensation should be calculated in advance. Include any necessary benefit continuation documents, such as COBRA information if applicable. Review severance agreements carefully before presenting them. Follow any deadlines related to pay or required notices to avoid legal exposure.

4. Protect confidentiality and retrieve company property

Limit internal communication about the termination to only those who need to know. Reclaim company equipment, deactivate system access and remind the employee of any confidentiality or non-disparagement obligations. If team members ask about the departure, keep responses professional and respectful.

Taking a careful and consistent approach to termination helps reduce legal risk while preserving organizational integrity. When questions arise or specific situations present uncertainty, obtaining legal guidance can help HR professionals move forward with clarity and confidence.

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