How to Terminate an Employee - A First Timer’s Script

As a startup founder or small business owner, handling employee termination is one of the most challenging tasks you’ll face. It’s uncomfortable, emotional, and often legally complex—especially if it's your first time.

But with the right how to terminate an employee script, preparation, and legal awareness, you can approach this sensitive process with confidence and professionalism.

Employee Termination Meaning: What Are We Talking About?

Let’s clarify what employee termination actually means. Simply put, it’s the end of the working relationship between an employee and an employer. It can happen in two ways:

• Voluntary termination: When the employee resigns or retires

• Involuntary termination: When the employer ends the relationship, either for cause (performance, misconduct) or without cause (restructuring, layoffs)

Regardless of the reason, you must handle the process with respect, thorough documentation, and strict adherence to legal compliance.

How to Fire Someone Legally: Start with the Right Foundation

Before using any 'how to fire someone' script, ensure the termination is legal. While most U.S. states follow ‘at-will’ employment, allowing either party to end the relationship without cause, there are key legal boundaries you cannot cross:

• Discrimination: Firing someone based on race, gender, religion, age, or other protected classes is strictly illegal.

• Retaliation: Terminating employees for whistleblowing, reporting harassment, or asserting legal rights is not allowed.

• Implied contracts: Verbal promises or written policies can override at-will protections.

• Documentation: Always have documented performance issues or business reasons behind the decision.

If you’re unsure, consult an HR expert to avoid legal risk. It’s one of the smartest moves you can make as a business owner.

Crafting Your How to Terminate an Employee Script

Let’s walk through a simple how to fire someone script that prioritizes professionalism. Keep it short and firm, with no room for confusion.

Before the Meeting:

1. Prep paperwork: Termination letter, final paycheck info, COBRA details, severance (if applicable), return of property checklist

2. Choose a private setting: Neutral and confidential

3. Time it right: Early in the week, early in the day—never on a Friday or before a holiday

4. Bring a witness: Always have HR or another leader present

5. Practice: Rehearse the script to stay composed and focused

Sample Script: How to Fire Someone Script

Here’s a foundational how to terminate an employee script you can adapt:

"[Employee’s Name], thank you for meeting with [Witness Name] and me today.
After careful consideration, we’ve made the decision to end your employment with [Company Name], effective today, [Date]."

If performance-related:

"This is based on ongoing concerns we’ve discussed, including [briefly list documented performance issues]. Despite our efforts, we haven’t seen the necessary improvement."

If restructuring/layoff:

"This decision is due to business restructuring and is not a reflection of your performance."

"HR will provide all relevant details, including your final paycheck, COBRA options, and steps for returning company property. We appreciate your contributions and wish you the best in your future."

What NOT to Do:

• Don’t apologize excessively or become emotional

• Don’t engage in debate or offer hope of reversal

• Don’t provide unsolicited feedback—this meeting is not for coaching

• Don’t delay revoking system access or retrieving property

Beyond the Script: Offboarding Checklist

Termination is more than a conversation. Follow through with:

• Collecting company assets: Laptops, IDs, keys

• Disabling access: Email, software, and internal platforms

• Final pay: Ensure compliance with state rules on final paychecks and PTO

• Internal communication: Inform your team discreetly, with professionalism

Getting these steps wrong can lead to compliance issues or reputational harm.

DianaHR: Your Offboarding Partner

Navigating termination is tough, especially without an HR team. DianaHR gives small and medium-sized businesses access to top-tier HR professionals who handle employee offboarding, legal compliance, and documentation from end to end.

From preparing state-specific forms to guiding you through COBRA and severance, DianaHR helps you avoid costly mistakes and manage sensitive exits smoothly. You get peace of mind knowing your business is protected and every step is legally sound. 

FAQs on Employee Termination

What is at-will employment?

In most U.S. states, at-will employment allows either the employer or employee to end employment at any time for any lawful reason, with or without notice.

Do I need to give a reason for termination?

Technically, no—but providing a brief, documented reason is best practice, especially in performance-related cases.

What paperwork is needed for termination?

Termination letter, COBRA information, final paycheck details, return-of-property checklist, and any severance agreements.

Can employees say goodbye to coworkers?

It depends. If there are no security risks or conduct concerns, a brief farewell may be appropriate.

How can DianaHR help with employee terminations?

DianaHR offers outsourced HR for startups and small businesses, handling compliance,

paperwork, final pay, and employee offboarding—making difficult conversations less stressful and legally secure.