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. Traditionally, both the employer and the employee have the ability to end an at-will relationship at any time and for any reason. However, the freedom to fire at-will employees at any time for good, bad, or no cause has been eroded in recent years by the federal and state governments and the courts. The exceptions that have been carved into the employment-at-will doctrine form the foundation for most wrongful discharge claims, in which employees sue for lost wages, punitive damages, and, sometimes, reinstatement to their jobs.

To protect yourself and your business from legal claims of improper firing, you should document poor performance problems in an ongoing fashion, before you fire the person.