There are various reasons why you might fire an employee. Some are a direct result of the employee’s conduct and others have more to do with the financial state of your business than the employee’s performance. If you fire an employee, the reason should be documented.

• Poor performance. You may fire an employee for unsatisfactory job performance if your relationship with the employee is based on the principle of employment-at-will.
• Downsizing. Know how to handle the situation when economic reasons force you eliminate an employee’s job.
• Misconduct. Behavior such as insubordination or breaking a work rule may constitute a proper reason to fire an employee.
• Documenting reasons for firing. For legal purposes, before you fire an employee you should always document the problems that are the reason for the action.
• Voluntary resignations. Know what steps you should take if an employee quits, including requesting advance notice and conducting an exit interview.
• Prompted resignations. When is it a good idea to use a prompted resignation rather than firing someone?

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