Ending someone’s employment is one of the hardest parts of running a business. For small and medium business owners, it can feel personal, uncomfortable, and even overwhelming. But sometimes, it’s the only option—whether it’s due to performance issues, misconduct, or changes in the business itself.
Handled poorly, termination can damage your reputation, shake team morale, or even result in costly legal claims. Handled well, it can be a respectful, professional process that protects your business and your people.
✅ Follow a fair process
Make sure you have documented conversations, clear evidence, and that you’ve given the employee a genuine chance to improve. Skipping steps can expose you to unfair dismissal claims.
✅ Check the legal requirements
Know your obligations under the Fair Work Act, awards, or agreements. Notice periods, redundancy pay, and entitlements all matter.
✅ Communicate with respect
Have the conversation face-to-face where possible. Be clear, professional, and compassionate. Termination is tough—kindness goes a long way.
✅ Plan the logistics
Think ahead about final pay, returning company property, and how to inform the rest of the team. Clarity reduces confusion.
✅ Support the team
Remaining staff may feel unsettled. Acknowledge the change, reinforce stability, and be available to answer questions.
Termination should never be your first step—but when it becomes necessary, doing it fairly, legally, and respectfully is key. The goal is not just to end employment, but to protect your business and uphold your values in the process.
Need guidance on managing a termination in your business? The Aster HR team is here to help you navigate it with confidence.
