6 min read
Everything You Need to Know about Terminations, Separations, or Layoffs
Archbright Team Member
:
August 17, 2026
It’s no HR leader’s favorite part of the job. But when a termination or layoff becomes necessary, how you handle it can make a meaningful difference for everyone involved. From how to conduct layoffs with dignity to whether the old “never fire on a Friday” advice holds true, let’s break down how employers can prepare for and navigate terminations.
Follow a Process and Check Every Box
Terminations, separations, or layoffs should be preceded by a rigorous amount of documentation and paperwork. Even “at will” employment has caveats and employers cannot fire someone for protected activities (like taking a job-protected leave) or because of protected characteristics like age, race, religion, disability, gender, national origin, or military status. Violations of these policies leave you open to lawsuits or claims in court.
If your organization doesn’t already have one, create a process for documenting the performance issues, conduct concerns, or business reasons that have led to the termination. Doing so can help protect your organization if the decision is later challenged.
Want help jumpstarting your policy? Check out these related mozzo resources:
Prepare for the Termination Meeting
Telling someone that they are losing their job, whether due to performance issues or a layoff, should be done face-to-face whenever possible and not over email or by phone. These conversations are difficult for everyone involved, and they deserve thoughtful preparation. Whatever the reason for the separation, the employee's experience will be shaped not only by the decision itself, but by how it is communicated.
What is the Best Day of the Week to Terminate Someone?
A common HR saying is to never fire on a Friday, and we’ll take that a step further and say to avoid Thursdays as well. The reasoning is simple: employees need time to process the news and may have questions in the days that follow. One of Archbright’s employment law attorneys, Mark Nelson of Workplace Law Group, wrote a great piece on what day of the week is best for terminations if you'd like to explore the reasoning in more detail.
In general, we recommend a Tuesday or Wednesday for these conversations. In the days leading up to it, gather the necessary information to share during that meeting.
Gather Your Documentation and Resources
Assemble your documentation alongside a copy of your policy with violations highlighted. Prepare to explain your “why” clearly and provide examples and documentation to back it up.
You’ll also want to prepare a termination letter that includes critical information like their last day of employment, final pay date, benefits termination, and COBRA or other continuation options they may need to consider.
Related mozzo Resources:
Make Plans Internally to Create a Smooth Exit
Connect with your IT department on how to turn over any equipment, when access will be deactivated, and ask Operations about what keycards or keys to collect during their final day. Having a checklist of everything you need to collect will make it easier not to forget anything, especially while emotions may be high.
It is recommended to always have an HR representative present at a termination meeting and for particularly sticky terminations, you may also want to have legal counsel present. Find a time that works for all required parties, but don’t share with the employee until day-of if possible. The employee will likely sense that something is wrong and it’s best to not let it fester for days leading up to the conversation.
How to Conduct a Termination Meeting
Once you’ve assembled all the documentation, have the necessary people in the room, and “shut the door” so there is privacy (if you’re conducting the meeting in person). Get right to the point. It is an uncomfortable conversation, but they don’t need small talk. At that moment they need you to be direct, so they understand what is going on.
Let them know you have difficult news. Be direct: “We have made the decision to end your employment, effective immediately.” State your reasoning, provide evidence where appropriate, or if it’s a layoff reassure them that this was not a performance-based decision, but a business one. You don’t need to apologize excessively or wax on the difficulty of the decision. After you’ve stated the facts, allow them a moment to process and ask questions. It may be quiet, and that's okay. Let them think.
The employee may become emotional, it's important to allow them a moment to collect themselves and leave room for questions as they process the news. They may become angry, and if that escalates to threats or aggression towards yourself or other team members have a plan on what to do.
If they have questions, you can address logistical details as they come up. If not, be sure to review key information before concluding the conversation, including their last day, when they can expect their final paycheck, any benefits/coverage information they need, and any severance or separation agreement when applicable.
Wrap up the meeting by reviewing logistical details and working through your IT and Operations checklist. Depending on the circumstances, it may be appropriate to give the employee privacy while they gather their personal belongings. If that isn’t possible, explain the process for collecting their belongings, including whether they will be escorted out and if any items will be mailed to them later. If company equipment needs to be returned or shipped, walk through those next steps as well. Finally, consider providing a transit pass or parking validation if they are handing over company commuter cards so they have a way home.
Related mozzo Resource:
Keep the Human in HR
Terminations and layoffs are some of the toughest situations HR professionals face. While the decision may be necessary, how it's handled can have a lasting impact on the employee's experience. Thank employees for their contributions to the organization, and facilitate an exit that isn’t observed by the rest of their colleagues whenever possible.
Remember that while you've had time to prepare for the conversation, the employee is hearing it for the first time. Pause, give them space to absorb the information, and don’t rush the conversation.
Final Wrap-Up
After the meeting, document the conversation and make notes of what you communicated, who was present, and what was provided to the employee. If you agreed to send materials or resources to the employee, share them right away to their personal email address.
Next, you’ll need to communicate the termination to the rest of the team. If appropriate, a manager may convey the news to immediate team members first and then you can share the news more widely with the organization. Make yourself available to anyone who has questions or concerns about the exit but remember you do not need to share details of the termination if asked.
Frequently Asked Questions about Terminations
What do we do if a terminated employee is reaching out to our current employees to badmouth us?
Consult legal counsel regarding potential next steps.
We’re in an at-will state, I can terminate for any reason, right?
At-will employment gives employers broad flexibility to terminate employment without cause, but there are important limitations. You cannot terminate for illegal reasons, including because of a protected characteristic such as race, sex, age, disability, religion, national origin, or military status. Employers also cannot terminate an employee in retaliation for protected activities, such as reporting unsafe conditions, filing a workers’ compensation claim, or serving on a jury.
It is also illegal to terminate an employee for refusing to engage in unlawful conduct on the employer's behalf. Even in an at-will state, termination decisions should be supported by clear business reasons, documentation, and evidence that the decision was made fairly and consistently.
Related mozzo resource:
The person we’re looking to terminate is out on FMLA or another form of protected leave. Can we still move forward?
It depends on the circumstances. You cannot terminate an employee because they are taking protected leave. However, if there is a different, legitimate reason to terminate, it may still be possible to move forward. The key is being able to demonstrate that the termination or layoff would have occurred regardless of the employee's leave status. Make sure your documentation clearly supports the business reasons for the decision.
Do we have to provide an explanation of why they are being terminated?
In most states, employers are not legally required to provide a reason for termination. Exceptions may apply if the employee is covered by an employment contract or union agreement that requires it. Washington State employers are now legally required to provide a written reason for termination upon an employee's request. If the employee files for unemployment and you choose to dispute that claim, you will likely be asked to provide the reason for the termination. You should be prepared to demonstrate and document that the decision was based on legitimate business reasons and not an unlawful reason for termination.
Related mozzo resources:
What do we say to the rest of the team about a termination or layoff?
Communicating hard news to the team can be challenging. Remember that you only need to share the facts: the employee is no longer with the organization effective on a specific date. You should not share why they were terminated. If employees have questions about how the exit will impact them or their work, make yourself available for follow-up conversations.
In the case of a layoff, leadership may decide to share some of the business reasons behind the reduction in force, but they are not obligated to do so. We generally don't recommend sharing news of a larger layoff solely by email, as it can create uncertainty and anxiety among employees. While challenging, communicating directly and transparently helps preserve trust and credibility with your team.
Do we have to provide severance? What about sick leave or vacation payout?
In general, employers are not required to provide a severance package unless otherwise stated in an employment contract, policy, or other agreement.
Employers are also generally not required to pay out any accrued, unused sick leave. However, if an employee is rehired within 12 months of the date of termination, their previously accrued paid sick leave must be reinstated. If it is your company policy to pay out unused sick time upon separation, you are not required to reinstate upon their return.
PTO and vacation time payout requirements vary by state and your organization’s written PTO policy. Some states, like California and New Mexico, require accrued vacation time to be paid out upon separation. Other states, including Washington, allow employers to determine if PTO will be paid out based on their written policy.
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