Lawyers call this constructive discharge. If you're firing the employee for drinking on-the-job, for instance, don't beat around the bush. Document the effects this behavior has on your small business. Be sure to document your meeting, including anything the worker says and how he or she reacts to the lay off. All difficult employees start making trouble long before you begin the lay off process.

For example, you can dismiss someone for being a Dallas Cowboys fan - clearly a stupid reason unless, unquestionably, you live in Washington DC:). Regardless, your employee separation agreement will include the rights and responsibilities of both the jobholder and the firm. An Intro to Terminating a Employee. Alternatively, you may unknowingly offend the worker with patronizing remarks or give her false hopes of another chance. I know this may go against your principles, but it's a reasonable firm decision when the troublemaker is costing the business lost time, lower group spirit, lost productivity, regulatory fines and legal hassles. An employee termination memorandum should contain certain elements. The next week you shockingly discover your former jobholder has filed a unlawful employee termination suit. It should include a copy of the layoff memorandum, separation document and COBRA notices. If you decide the jobholder violated a gross misconduct rule, you can dismiss him immediately. A sample layoff letter will ensure you cover important areas and stay within the dismissal law. Be sure the problem you are having with the worker's work-related conduct or performance.