Collect all the documents that you require for the termination. The list should be in your operation manual.
Many bosses believe that you should tell the employee at the end of the day. I found it works better if you do it at the beginning. While you terminate the employee have a trusted employee lock the employee out of critical data. Turn off the computer station. Clear the desk and office of critical files.
Terminate the employee and have them leave immediately. If you allow them back into their office to collect personal possessions make sure you or a trusted employee goes with them. If you want to give two weeks notice or other notice pay them but do not allow them to stay. Even a good employee will be upset and may do something bad for the company.
A terminated employee working out the two weeks notice will be a drain on productivity, motivation and moral from the remaining employees. Like pulling off a band aid swift quick action will not be pleasant but it is the best to get the process over as quickly as possible.
Explain to the employee they the company no longer requires their services and they are being terminated immediately. Also make sure it is clear the the decision is final and not subject to discussion. If the employee is being terminated due to changes in the company or economic conditions, you can offer a letter of reference or other help. If you are offering severance pay tell them what you are giving them. Make it clear that issue is also a final decision and not a negotiation. If you owe back vacation, sick pay or other compensation make sure you clearly put in writing what will be paid and how it was calculated.
You can be sympathetic but do not get into long discussions. Keep it as short as possible.
If the employee is being terminated for cause do not go into detail even if you have documented evidence. Say the company no longer requires their service. Going into detail can lead to arguments and may increase legal liability.
If you are paying for the employee’s health insurance you can terminate the coverage but the employee may be able to stay on your plan for a limited time if they pay the premiums. (The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires most employers with group health plans to offer employees the opportunity to continue temporarily their group health care coverage under their employer's plan if their coverage otherwise would cease due to termination, layoff, or other change in employment status. - http://www.cobrainsurance.com/COBRA_FAQ.htm#What is COBRA?)
Make sure you collect any keys that were issued. You should also change alarm codes, passwords and locks.
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