Dismissing Employees with Compassion – 11 tips for Employers

Dismissing an employee is usually considered one of the least favourite responsibilities an employer or manager must take on. If handled poorly, dismissals can result in expensive and time-consuming claims, but many businesses don’t give proper training in how to do it properly.

As a manager or business owner, your priority is the best interests of the company. If an employee is underperforming, it has a negative impact on both the business and the other employees who have to work with them. While it may be a costly exercise to dismiss and replace an underperforming employee who won’t improve, it is nearly always the right solution because, in the long term, keeping an underperformer in the team will cost much more.

Knowing the correct time and manner to carry out a dismissal is an essential part of running a good business and a skill that managers and business owners must master. To help, we have put together 11 tips to help you handle an uncomfortable situation the right way.

When a new starter joins, it can soon become apparent that they are not the right fit for the job or the culture of the business. If this is the case, it’s important to deal with issues quickly as they arise. Documenting incidents and issues is an effective way to track if a situation can be fixed, and if dismissal is necessary will help support the reason for your decision. Before starting an early dismissal process, always check you have no potential liability (e.g. for discrimination) that may land you in a Tribunal!

An employee can appear to be the right person for the job and the company for months and even years, but then something changes. They may become complacent, resentful, dishonest or even arrogant because they believe they are indispensable. These employees can easily become a liability.
If you become aware of an issue with an employee, starting a disciplinary process or a performance review can be the right course of action. Ensure you keep a record and follow the company’s formal process.

By starting a formal process, the employee is also given the opportunity to rectify the issue or find alternative employment that may suit them better. It is also a safe way to keep animosity and anger to a minimum, as it allows clear expectations and the consequences of non-performance to be communicated.

Only if an employee does something that amounts to gross misconduct, and even then, only in exceptional circumstances, can you surprise them with an immediate dismissal without risking a cost to the company.

To ensure clear and effective communication when dismissing an employee, making a script, notes, or bullet points of what you need to cover is always a good idea. This will help you prepare for the meeting and stay on track, as it is easy to get diverted from what you wanted to say in a difficult conversation.

Unsurprisingly, Fridays are a popular time to dismiss a member of staff, as it gives both sides the weekend to process and reflect on the meeting and discussions. Later in the day can be a good option if you believe the individual will react badly, as this may help to avoid disrupting the rest of your staff.

However, leaving it too late in the working day on a Friday can have a detrimental effect, with employees feeling that the discussion was an afterthought or not the most important thing to be done that week. Earlier in the day, or a Thursday is also a suitable time to have the meeting, particularly if you are expecting the employee to sign a Settlement Agreement, as it allows time for the employee to seek legal advice.

For anyone faced with losing their job, it can be an extremely emotional and stressful experience, and with this in mind, choosing a time to conduct the meeting when the office is at its emptiest would be more respectful. It may be necessary to send the people working nearby on a break or take the employee to another office/building.

Avoid any personal and insensitive comments during the meeting and deliver the message professionally, firmly, and sensitively. Be prepared to answer some questions, but also be prepared to remain firm and not engage in an argument. Lastly, don’t be surprised if you get tears – it’s very common.

Plan how the employee will collect their possessions, ideally without lots of questions/prying eyes, and how you will deal with requests to see their colleagues and access their computers. You may decide to have the employee take their bag, keys and coat, and all other items will be boxed and delivered, or another time will be arranged for them to collect in private.

Dismissing people is unpleasant, but being fired is much worse. Do your best to make it easy on the person by keeping things factual and brief. It is important to reinforce that this is not personal, even if it is. Acknowledge that this is a hard decision for them and their family, but this is the decision that’s been made.

If they have anything they want you to consider, remind them they have a right of appeal and make sure you can explain the appeal process. Be prepared to provide facts, such as specific examples of performance and misconduct and how you have made your decision. Do not get into an argument or gloat. Keep to the point, speak with authority, and remain professional at all times.

If you are intending to offer the employee a payment (such as a payment in lieu of notice, or a sum under a Settlement Agreement), go into the meeting with clear details of what they will be getting. Offering a financial settlement can also aid in keeping the employee calmer, as it will allow them time to find alternative employment, often making the discussion less likely to turn into an argument. If you are offering a Settlement Agreement, you should explain that they have time to seek legal advice and that you will be paying a contribution towards their legal fees. This gives them some breathing space.

Bring an appropriate person to be a second set of eyes and ears in the meeting and to take notes. This will be helpful if there is any dispute as to what was said, and it may help keep the situation calm if you do not get on well with the employee.

By this stage, the employee has seriously underperformed and has been made aware of this fact and given an opportunity to improve. In circumstances where you have a good relationship with the employee being dismissed, but they are just not right for the job, you might offer to help them find new employment or at least give them a suitable reference. If you are offering a Settlement Agreement, an agreed reference is usually included. Larger companies often do this as part of their process, but a smaller employer may choose to do this on a case-by-case basis.

Much like each step of the process, it’s important to communicate any decisions tactfully and respectfully. Informing colleagues, customers, suppliers or any other parties of the dismissal can be tricky. Avoiding specifics and remaining professional is the best way to tackle this, and using the phrase “parted company” may be more helpful than “sacked” or “fired”.

If the disciplinary and performance procedures are followed, then colleagues are usually aware of some of the circumstances and will understand that this person had opportunities and why they had to go.

To help avoid costly mistakes, it is advisable to seek legal advice to ensure that you follow the correct process during a dismissal.

Dismissing an employee isn’t easy, but with the right approach and by following the correct procedure, you can keep disruption to a minimum, keep the business away from the Employment Tribunal and strengthen your team, while your ex-employee can move on to a more suitable job.

If you would like to discuss a situation that your business is facing in more detail, or need help with the dismissal process, then contact our friendly, expert employment law team today for advice and support.

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