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Terminating an employee is a stressful experience regardless of the circumstances. While firing is a fact of life for most small enterprises, layoffs are far less common and far more unsettling.

When terminating employees, there is a right way and a wrong way. This research note offers advice on how to get it done the right way, including:

  • Why terminations happen in the first place.
  • Why many enterprises avoid terminating staff, even if avoidance is to their detriment.
  • A list of termination recommendations to maximize fairness and minimize risk.

Employee termination is especially difficult when a good employee is released as part of a cost-cutting measure. No matter the circumstances, terminations should be handled with sensitivity and dignity while still protecting the enterprise's legal position.

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