Sun. Apr 14th, 2024
Valid Reasons for Employee Termination

Terminating an employee is a challenging task for any business owner or HR professional. It becomes even more complicated when the termination is due to poor performance. While every effort should be made to help underperforming employees improve, there comes a point when termination becomes the only viable option. In this article, we will explore the valid reasons to terminate an employee, how to terminate an employee for poor performance and management of it through the use of management software.

Reasons to Terminate an Employee

The following are the valid reasons for firing an employee. When firing an employee, you will probably be in good shape if you prove the following. However, before doing so, you should always get advice from legal specialists and human resources (HR) experts.

  • Gross Misconduct: This refers to deliberate, unacceptable behaviour by an employee that is inappropriate for the workplace and can pose a significant risk to individuals or damage the organisation’s reputation. Most companies have a defined code of conduct available to all employees upon hiring, outlining the consequences of not adhering to it.
  • Theft of Company Resources: This is a common form of employee misconduct, where employees disregard the code of conduct and steal from their employers. It can include taking items that do not belong to them, using company resources for personal gain, or using company patents, trademarks, or logos without permission.
  • Inappropriate Relationships: Keeping up with rigorously proficient connections in the working environment is critical to maintaining the organization’s respectability and guaranteeing the prosperity, everything being equal. Close connections in the work environment can prompt issues like lewd behavior and separation, harming the organization’s standing.
  • Breach of Confidentiality: Representatives are supposed to safeguard delicate data inside an association. Breaching confidentiality, such as sharing client information with outsiders, is considered misconduct and can lead to termination.
  • Gross Insubordination: Rehashed rude or resistant way of behaving towards bosses, inability to follow work timetables, or refusal to give data when mentioned can be considered rebellion and may bring about end.
  • Alcohol/Drug-Related Misconduct: Many organizations have a zero-resistance strategy for liquor and medications because of their capability to impede judgment and influence work execution. Bombing a medication or liquor test can prompt quick excusal.
  • Conviction for an Offence: If an employee is charged and convicted of a criminal offence, especially if it breaches the terms of their employment agreement, it may lead to a loss of trust and subsequent dismissal.
  • Serious Breach of Safety Rules: Employees who knowingly endanger themselves, colleagues, or the company through actions like ignoring safety rules may be terminated for cause to ensure workplace safety.
  • Incompetence: Continuous failure to meet job performance standards, indifference, or lack of effort to improve can be considered incompetence, potentially resulting in termination if warnings and standards are consistently disregarded.
  • Bankruptcy: Some roles require employees to manage finances responsibly. If an employee working with the company’s finances is declared bankrupt, it can trigger termination as it may violate company policies.
  • Bribery: Accepting gifts or bribes from clients or any form of unethical conduct that conflicts with the company’s integrity policy can lead to termination due to the damage it poses to the company’s reputation and conflicts of interest.

Managing Poor Performance Through Software

Software assistance is integral in setups to monitor productivity of the employees. The ways to manage poor performance through software are as follows: 

  • Performance Tracking: Management software allows organisations to track employee performance systematically. Key performance indicators (KPIs) and metrics can be monitored over time, making it easier to identify underperforming employees.
  • Data-Driven Decisions: Programming gives admittance to significant information that can be utilized to settle on informed conclusions about worker execution. Instead of depending on emotional decisions, chiefs can utilize objective information to survey execution.
  • Regular Feedback: Management software facilitates the regular exchange of feedback between managers and employees. This continuous feedback loop can help employees understand their performance gaps and work on improvement.
  • Performance Improvement Plans (PIPs): Software can assist in creating and monitoring performance improvement plans. These plans outline specific goals and actions for the employee to address their performance issues.
  • Documentation: Proper documentation is crucial when terminating an employee for poor performance. Management software allows for the secure storage of performance-related documents, such as warnings, write-ups, and requests for corrective actions.

12 Things to Avoid When Terminating an Employee

  • Avoid Electronic Communication: Never use electronic means like email, text, or social media to terminate an employee, it’s impersonal and unprofessional. Do it face to face.
  • Don’t Surprise Them: Provide regular feedback and warnings before termination, except in extreme cases.
  • Don’t Fire Alone: Have a witness present to avoid potential legal issues.
  • Avoid Comparisons: Base your decision on individual performance, not by comparing the employee to others.
  • Limit Explanation: Keep the termination explanation simple, like “Your performance doesn’t meet company standards.”
  • Stay Calm: Avoid arguments or confrontations with the employee, even if they become upset.
  • Be Clear: Use firm language to convey that the decision is final from the beginning of the conversation.
  • Provide a Termination Letter: Give a written termination letter for documentation purposes.
  • Respect: Treat the terminated employee respectfully; avoid making a scene.
  • Retrieve Company Property: Ensure the employee returns company property by providing a list during the termination meeting.
  • Handle Personal Belongings: Arrange for the return of personal belongings to avoid discomfort.
  • Revoke IT Access: Immediately revoke access to IT systems during the termination meeting to prevent issues.


Terminating an employee for poor performance is a challenging but sometimes necessary step for the overall well-being of the organisation and its workforce. Addressing performance issues promptly and professionally is crucial to maintaining a productive and positive work environment. Utilising management software like ProHance can assist in tracking performance, making data-driven decisions, and facilitating effective communication throughout the performance improvement process. By following best practices and legal guidelines, businesses can go through the process of employee termination with fairness and integrity. Remember that while termination is difficult, it can ultimately lead to a more productive and harmonious workplace for all.


Leave a Reply

Your email address will not be published. Required fields are marked *