A Guide to Firing

Terminating Employees the Right Way: Legal Best Practices for Employers

Letting an employee go is never easy, but it’s an unavoidable part of running a business. In this Fired Up Fridays webinar, employment attorney Spencer Phillips from Employer-Lawyer walks through practical and legal best practices for terminating employees while minimizing risk for your company.

One of the first points discussed is the common misunderstanding between “right to work” and “at-will employment.” Utah is an at-will employment state, which generally means employees can leave their job at any time and employers can terminate employees for nearly any reason. However, that freedom has important limits—employers cannot terminate employees for illegal reasons such as discrimination, retaliation, or violations of public policy.

Because of these risks, preparation is one of the most important steps in the termination process. Employers should review the situation with HR or legal counsel ahead of time, especially if there is a chance the employee could claim wrongful termination. Employers should also ensure that practical details are handled before the meeting takes place, such as preparing the employee’s final paycheck, gathering company property like laptops or keys, and coordinating with IT to immediately disable access to company systems, email accounts, and client databases.

Another key best practice is providing a written notice of termination letter. Preparing this document in advance helps employers clearly define the real reason for the termination and communicate it consistently. A concise written explanation—typically a short paragraph summarizing the primary reasons for the decision—can help prevent misunderstandings and provide valuable documentation if the employee later files for unemployment benefits or raises a legal claim.

Phillips also recommends having a witness present during the termination meeting whenever possible. A second person can observe the conversation and take notes, helping avoid disputes about what was said. In Utah, employers also have the option to record termination meetings because the state follows a one-party consent rule, meaning a recording can legally be made as long as one person involved in the conversation consents.

The webinar also addresses severance agreements, which are often misunderstood. Severance pay should typically be offered in exchange for something—usually a written waiver of certain legal claims against the employer. Without that exchange, a company may simply be giving away money without receiving any protection in return.

Finally, the presentation highlights several important exceptions to the at-will employment rule. Even in an at-will state, employers cannot terminate workers for reasons that violate public policy. For example, employees generally cannot be fired for reporting workplace harassment, refusing to participate in illegal activity, exercising their right to vote, or fulfilling civic duties like jury service. Employers should also be cautious in situations involving workplace self-defense, where courts may recognize certain protections for employees.

Overall, the key takeaway is that thoughtful preparation, clear documentation, and an understanding of the legal limits of at-will employment can help businesses handle employee terminations more professionally and with less risk.

If your business needs guidance on handling employee discipline, termination procedures, or employment law compliance, the attorneys at Employer-Lawyer can help you navigate these complex issues.