What Are Common Grounds for Termination?

Termination decisions require careful consideration. This article outlines 25 legitimate reasons for dismissal, addressing ethical, legal, and performance-based concerns while emphasizing workplace integrity and compliance.

By Brad Nakase, Attorney

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What are common reasons for termination?

You may have hired an applicant who blew you away during the interview, but now that they’re on the job, you can see how their actions are affecting your coworkers and the company as a whole. It’s important to safeguard your customer relationships, office atmosphere, and company image. But when is it okay to dismiss an employee?

We have put together a list of 25 legitimate grounds for firing someone if you are unsure about what to do.

Sexual harassment

In the majority of countries, both public and private employers are legally prohibited from engaging in sexual harassment at work. Sexually explicit comments or advances, whether verbal or physical, are collectively known as “sexual harassment” in a work environment. The establishment of rules to guarantee a safe and harassment-free workplace is of the utmost importance.

Failing to respond to allegations of sexual harassment shows a lack of ethics on the part of the organization and may lead to multiple lawsuits. To safeguard your team and business, be prepared to investigate allegations of sexual harassment and take corrective action if necessary.

A high rate of absence

It’s okay to take time off for vacation or illness, but if an employee often doesn’t work a full week, it can hurt your company’s performance. This might be a valid reason to let them go.

Also, keep in mind that workers who are sick may take more time off than usual, fall behind on their work, and eventually use up all of their sick days. Here, a different tack may be required in accordance with local legislation and business policy.

But if the employee’s chronic tardiness continues unabated, it may be a sign that they are not putting in the effort necessary to be an effective employee and contribute to the success of the business. Before proceeding with additional action against an employee, it is important to consult with your HR department.

Potential conflicts of interest

A code of ethics addressing potential conflicts of interest is a common component of company policy manuals.

Imagine a scenario where an employee’s personal interests could clash with those of the company. If this is the case, then this could be a justification for your decision to make them redundant, particularly if this was an intentional act or if there is no alternative that is appropriate.

Violating the trust of clients

If an employee violates client confidentiality, you may have to fire them or take other disciplinary action, depending on the seriousness of the offense.

Before taking any action, you must determine if the employee is aware of the rules, the gravity of the breach, and the repercussions of violating data protection and confidentiality policies.

It is critical to conduct an investigation and interview other staff members without delay in such instances. Do your best to collect statements from any witnesses and any other pertinent details about the case. You can pursue legal action that could result in termination once you have gathered sufficient evidence.

Sharing private information

As an employer, you have a responsibility to have your employees sign a document committing you to the confidentiality of company information. It may be a violation of confidentiality to disclose information about projects, finances, customers, and strategies to parties outside of the organization.

When people in the business world use their contacts for their own benefit, it is a breach of confidentiality. As an extreme case of data breach, consider a salesperson who looks up a customer’s phone number in the company database and then posts the number online. Customers care about their privacy, so if you want to keep your company’s good name, you should fire the employee.

Theft of business property

No amount of theft is acceptable, even if an employee takes a tiny bag of rubber bands from your supply closet and brings them home.

Although workplace theft is prevalent, terminating an employee for minor infractions like misplacing stationery could be excessive, unless the theft is habitual.

On the other hand, it is totally acceptable to fire the offender when they steal expensive equipment or items that could cause significant financial harm to your company. Similarly, there may be grounds for termination in the event of specific instances involving the misuse of company property and resources.

Discrimination

In the workplace, discrimination is considered a major crime. There are negative effects on morale and productivity in the workplace as well as potential legal consequences for discriminatory actions. A number of statutes exist with the express purpose of protecting workers from discrimination on the basis of legally protected characteristics, including age, gender, race, disability, nationality, and religion.

Harassment and acts of violence

Any kind of violence, whether physical or verbal, warrants termination of employment. The motivations behind harassment in the workplace can include factors such as religion, race age, nationality, gender, or ethnicity.

You should be prepared to act swiftly in response to any employee whose behavior endangers the physical and mental health of another employee.

Using drugs or alcohol while on the job

A person may face immediate dismissal from their position if they arrive at work impaired or under the influence of other substances.

Be mindful that some of your employees may be taking medications with serious side effects for medical reasons, and make sure that your zero-drug tolerance policies take that into account. You should look into the matter thoroughly before terminating an employee’s contract due to intoxication.

Insubordination

Typically, the consequences of disobedience are not very severe. The repercussions of employee disobedience to health and safety regulations in the workplace, however, can be severe.

Their dismissal may be justified if they do not alter their behavior after receiving a warning.

Creating fabricated business records

It is not uncommon for employees to falsify company documents in order to benefit themselves.

Workers may, for instance, inflate their spending or their overtime bonuses by forging paperwork.

In your employee handbook, you should spell out the consequences of document forgery, including the possibility of termination. Following established protocol and, depending on the gravity of the offense, considering excusing the offender from responsibility should be your first priorities in the event of a blatant violation.

Damage to business property

Vandalism is a major violation that can result in termination as a disciplinary measure.

Workers are required to respect business property and use it appropriately while on the clock, as stated in the company handbook and other corporate policies. Before you can fire an employee, you need to gather proof that they are responsible for the damage to the property.

Not following business policy

While onboarding new employees, it is essential to provide them with a thorough overview of your company’s policies. This ought to specify regulations concerning harassment, equipment/tech, zero-tolerance, code of ethics, and dress code.

Employees are subject to termination if they violate any of the policies stated in your guide.

Deceiving job applications

A 2017 study by HireRight found that 85 percent of job applicants submit falsified resumes.

If an employee has misled you about their skills and experience, you have every right to terminate their employment.

Subpar work output

Poor performance is the leading cause of termination in the workplace. It can also refer to a wide range of topics, including:

  • A worker who, after the allotted training time has passed, is still unable to do the job adequately
  • Failure to meet targets
  • The requirement for ongoing supervision

It goes without saying that an employee’s lackluster performance on the job is the most obvious justification for firing them.

Downsizing

No matter how hard an employee works, they could still lose their job if the company decides to downsize or cut costs.

As a kind gesture, let your staff know about the decision ahead of time so they can prepare for it. The federal Worker Change and Retraining Notification Act (WARN) mandates that certain US employers notify their employees in advance of layoffs.

Misconduct outside of work

When an employee takes part in a demonstration by an extremist group or shares material on social media that contains hate speech, what are your responsibilities as an employer?

The culture, rules, and regulations of your organization will dictate this.

Make sure your policies don’t conflict with any national or local laws that forbid you from punishing employees for their actions outside of work if you want to stay out of legal trouble.

Rude conduct

Rudeness in the workplace, including rudeness and sexism directed at coworkers or customers, creates a negative atmosphere for everyone.

One reason to fire an employee is if they show a complete lack of empathy and consideration for others around them. This includes things like being rude, isolating themselves, and causing chaos at work. However, you should keep track of when this behavior occurred and the consequences you enforced. In order to move forward, you might also require assistance from your company’s HR department.

Defamation

One typical kind of defamation is slanderous speech. You may need to intervene and impose disciplinary measures against an employee if they persistently spread false rumors about their coworkers, supervisor, or even the entire organization.

Another way to make sure that workplace slander doesn’t happen again is to call a team meeting and go over the problem and the repercussions of it.

Abuse of power for private benefit

It isn’t exactly a misuse of power to use a work computer for personal email or to print out a recipe. Nevertheless, let’s say that your social media manager takes advantage of his position to market his side hustle through the channels that your company uses, for instance. If that’s the case, you may have good reason to fire them because they’re abusing their position.

Inadequate cultural fit

Hiring managers are so concerned with finding someone with the necessary skills for the position that they fail to consider candidates whose backgrounds and values align with the company’s. They may be perfectly qualified for the position, but they will be a nightmare to manage and incorporate into your team.

You shouldn’t feel obligated to retain an employee if you discover they aren’t a suitable cultural match during their training. But, you should also give people a chance and let them settle into their roles before passing judgment.

Chronic illness

When an employee’s health declines over time, they may be unable to continue working. Either they’ll have to quit or you’ll have to fire them because of this.

Termination should be reserved for extreme cases, and you should do all in your power to make the employee’s needs met. To avoid legal repercussions, be knowledgeable of their workers’ rights in the event that you must terminate their employment.

Taking advantage of business resources for one’s own benefit

It is possible to fire an employee for misusing business time and resources. Of course, occasionally printing something out on the business printer isn’t exactly a major infraction that calls for punishment. It is reasonable, however, to fire someone for working on personal projects while on the clock and making extensive use of company resources and equipment without permission.

Statutory illegality

There are times when it would be illegal to continue employing someone. A courier business, for instance, would be unable to continue employing a delivery driver who had their license revoked.

If an employee does not possess the necessary documentation to work in your country, it may be necessary to terminate their employment. Having said that, statutory illegality does not allow you to avoid the formal dismissal procedure.

Some other significant reason

All of the dismissals that don’t belong anywhere else end up in the SOSR type, sometimes called a “dustbin” group.

There is no legal definition for the types of dismissals that are included in this category. If you want to dismiss someone on the basis of SOSR, you better have solid evidence to back up your claim. If you take your case to a tribunal, you’ll have to do the same.

Conclusion

Out of the 25 reasons listed above, the justification for firing someone will depend on the gravity and impact of their actions.

Always seek the advice of an attorney to make sure you won’t be held responsible for wrongful termination, even if you’re sure you have the right to fire someone.

Have a quick question? We answered nearly 2000 FAQs.

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