There’s no easy way to fire someone. Even when the decision is justified, the conversation can be uncomfortable, emotional, and deeply personal. Most managers dread it, not just because they’re unsure what to say, but because they understand what’s at stake.

A poorly handled termination doesn’t just affect the person being let go. It can shake the confidence of the entire team, damage trust, and raise questions about how the company treats its people. Ethical termination practices help protect more than just legal interests. They reflect the organization's character, leadership, and values in moments when those things matter most.

“The key to effective, human firing is to focus on how you treat people during the process.”
 — Joel Peterson, former Chairman of JetBlue

Why Ethical Termination Matters

Terminating an employee is more than a business decision; it's a human one. How it's handled can have a ripple effect across the organization, influencing morale, trust, and even long-term retention.

When termination is conducted with clarity and respect, it sends a message that people are valued, even in difficult moments. It reinforces accountability while maintaining dignity. And it shows that leadership is willing to do the hard things the right way.

Failing to approach termination ethically, on the other hand, can result in serious consequences:

• Legal and compliance risks. Inadequate documentation, inconsistent practices, or discriminatory behavior can lead to lawsuits, fines, or regulatory scrutiny.
• Cultural damage. A mishandled termination can create fear, resentment, or disengagement among remaining staff.
• Reputational harm. Word travels fast, especially when an employee feels mistreated. Poorly handled terminations can affect employer brand and hiring efforts.

Ethical termination isn’t about being soft. It’s about being responsible, consistent, and humane, recognizing that how you say goodbye says a lot about who you are as an organization.

5 Employee Termination Do's and Don'ts

Knowing what to do, and what to avoid, can make a difficult process more manageable, respectful, and legally sound. These practices help ensure that terminations are handled with care and consistency.

1. document thoroughly and communicate clearly

One of the most important parts of ethical termination happens long before the conversation. Consistent documentation provides a foundation for fairness. It also helps protect the company from claims of bias or retaliation.

Employees should never be surprised by a termination. Regular feedback, performance reviews, and corrective action plans create transparency and allow individuals to improve. When those steps are well-documented, the termination conversation becomes part of a process, not a personal judgment.

Clarity matters, too. Whether it’s performance-related or due to restructuring, clearly explaining the reason for termination helps prevent confusion and preserves dignity, even when the news is difficult to hear.

2. follow legal and policy guidelines

Even in at-will employment states, terminations must still follow legal and internal policy guidelines. Ignoring this can lead to costly consequences, from lawsuits to reputational damage.

Before moving forward, take time to:

• Review the employee’s record, including performance history, disciplinary actions, and any documented improvement plans.
• Double-check internal policies to ensure consistency with previous decisions and organizational standards.
• Consider legal protections, especially if the employee falls under a protected category or has recently reported concerns.

When there’s any uncertainty, it’s best to involve HR and legal counsel early in the process. A well-documented, policy-aligned approach protects both the employee and the organization.

3. oversee the Conversation with respect

The way a termination is delivered can shape how the employee remembers their time with the company, and how the rest of the team perceives leadership.

Whenever possible, have the conversation in person and in private. If remote work makes that difficult, a video call is better than an impersonal email or phone message. The person delivering the news should be prepared, calm, and direct. Avoid small talk or vague explanations. The goal is to be clear without being cold.

A respectful tone doesn’t change the outcome, but it does preserve dignity. Acknowledge the difficulty of the moment. Answer reasonable questions. Offer next steps, such as when final pay will be issued or how benefits will be handled.

After the meeting, follow up with written confirmation to avoid confusion. But let the actual conversation be human.

4. Protect privacy and minimize harm

A termination may be necessary, but it should never be a public spectacle. Maintaining confidentiality protects the employee’s dignity and helps prevent unnecessary workplace tension.

Keep the circle small. Only include those who need to be involved, such as HR, legal, and direct supervisors. Resist the urge to justify the decision to other team members with too much detail; even well-intentioned transparency can backfire if it compromises privacy.

It's also important to think about the ripple effects. Consider how and when the announcement is made to the broader team. Choose timing that avoids unnecessary disruption, and be thoughtful in how the message is delivered.

Privacy isn’t about secrecy. It’s about professionalism and respect, even when the news is hard.

5. avoid common pitfalls

Even with good intentions, it’s easy to make missteps during a termination process. Some actions, while seemingly minor, can have lasting consequences.

Watch out for:

• Rushing the process. Quick decisions without documentation or due process can lead to legal exposure and employee resentment.
• Overexplaining or apologizing excessively. This can blur the message or create confusion about whether the decision is final.
• Delegating without context. Handing off the conversation to someone unfamiliar with the situation may come across as careless or disrespectful.
• Making promises you can’t keep. If you're unsure about severance details, references, or rehire potential, it’s better to follow up later than to offer uncertain answers on the spot.

Ethical termination is not just about what you do; it's also about what you avoid. Being prepared, staying professional, and thinking a few steps ahead can help prevent regrets on both sides.

Supporting the Team After a Termination

While most of the attention during a termination is focused on the departing employee, the effects don’t end there. The rest of the team takes notice, and how you respond can either build trust or erode it.

When someone leaves, employees naturally have questions. Addressing the change with calm, appropriate communication can ease uncertainty and show that leadership is thoughtful and steady. You don’t need to share details, but you can acknowledge the departure and reaffirm the team's priorities moving forward.

It's also helpful to:

• Make space for honest conversation. Some employees may feel unsettled or anxious about job security. Acknowledge that without making promises you can’t uphold.
• Re-center the team. Reassign responsibilities clearly and support anyone who may be impacted by workload changes.
• Stay visible. Managers should be available in the days that follow to reinforce stability and rebuild momentum.

How you support your team after a termination can shape how they view leadership, fairness, and the company’s values.

The Power of Outplacement Support

One way to elevate ethical termination practices—and minimize disruption—is by providing outplacement services. Outplacement isn’t just a benefit for the departing employee; it’s a strategic tool for protecting your culture and reputation.

By helping someone transition with dignity and professional assistance, organizations:

• Demonstrate compassion and corporate responsibility
• Reduce the risk of resentment or backlash
• Improve morale among remaining staff who see how the company supports people even during tough moments
• Maintain morale among remaining staff who see how the company supports people even during tough moments

Job loss ranks among life's most devastating experiences—not just financially, but emotionally. Feelings of depression, powerlessness, and self-doubt are common, especially for those supporting dependents. 

Ulliance Career Transition Services® offers confidential support by helping the employee transition with dignity and respect. Services included in the program:

• Career Transition Workshop to help individuals plan and prepare for 
  what’s next
• Personal career coaching for the duration of the program 
• Behavioral health counseling for the job seeker and their family members
• A robust job seeker portal with tools and resources to aid in the search

When organizations invest in services like these, they show they don’t just care about people while they’re employed—but also when they’re facing one of life’s toughest moments.

Leading with Accountability and Care

Terminating an employee is never easy. The discomfort is a signal that what’s happening matters, and that how it’s handled makes a difference.

Ethical termination is about more than following the rules. It’s about honoring the human side of leadership, even when the decisions are difficult. When done thoughtfully, it protects the integrity of the organization and reinforces a culture of fairness, transparency, and respect.

The most effective leaders don’t avoid tough conversations. They prepare for them, carry them out with care, and take responsibility for how they affect others. That approach doesn’t just make for better terminations; it makes for better workplaces.

Learn more about ethical offboarding and career transition services at:
 👉 Ulliance Outplacement Services

When you partner with Ulliance, our Life Advisor Consultants are always just a phone call away to teach ways to enhance your work/life balance and increase your happiness. The Ulliance Life Advisor Employee Assistance Program can help employees and employers come closer to a state of total well-being.

Investing in the right EAP or Wellness Program to support your employees will help them and help you.  Visit https://ulliance.com/ or call 866-648-8326.

The Ulliance Employee Assistance Program can address the
following issues:
• Stress about work or job performance
• Crisis in the workplace
• Conflict resolution at work or in one’s personal life
• Marital or relationship problems
• Child or elder care concerns
• Financial worries
• Mental health problems
• Alcohol/substance abuse
• Grief
• Interpersonal conflicts
• AND MORE!

References:

Firing With Compassion; Harvard Business Review; Joel Peterson
https://hbr.org/2020/03/firing-with-compassion

How To Terminate an Employee (And What Not To Do), Indeed
https://www.indeed.com/career-advice/career-development/how-to-terminate-an-employee 

Proper Employee Termination Policies Help Reduce Employer’s Legal Risks; Thomson Reuters; Lisa Stickler https://legal.thomsonreuters.com/en/insights/articles/proper-employee-termination-policies-help-reduce-employers-legal-risks

Termination Tips for HR Practitioners; Society for Human Resources Management; Susan Ladika
https://www.shrm.org/topics-tools/news/hr-magazine/termination-tips-hr-practitioners