Grounds for Firing an Employee

In this discussion, readers will learn about the acceptable reasons for firing an employee.

Various types of employee misconduct and poor performance that can lead to termination.
Specific examples of behaviors and actions that constitute grounds for immediate dismissal.
The importance of documenting warnings and performance reviews to support termination decisions.

By Douglas Wade, Attorney

Email | Call (800) 484-4610

Have a quick question? We answered nearly 2000 FAQs.

Understanding the legal grounds for firing an employee may help a company avoid being sued. If an employee feels like they were wrongfully terminated, they can file a claim with the EEOC. Even if your reason for firing an employee was justified, an employee could claim they were terminated as an act of discrimination.

Before firing an employee, consult with an attorney to ensure you do not put your company at risk for legal action. Every situation for firing an employee is unique. This article is for general information. We invite you to read our Disclaimer page.

What are the grounds or reasons to fire an employee?

Here are the reasons for firing an employee in California, each with two additional sentences using the specified terms:

Misconduct: This can cover behaviors like discrimination, sexual harassment, and gross misconduct that threatens employee safety. These should not be taken lightly, and any complaints should be investigated immediately. Misconduct is one of the most common reasons for termination of employment. Misconduct is a clear example of valid reasons for firing an employee. In early 2024, Google fired dozens of employees for being disruptive.
Poor Performance: If an employee continually fails to meet their reasonable targets, they may be fired. Show that you have given warnings and provided training and support to help them improve. Poor performance is a valid reason for firing an employee. Documenting poor performance is essential among reasons for firing an employee.
Too Many Absences: Frequent sick days or unpaid leave beyond their allowance make an employee less valuable. Notify HR of the issues and approach cautiously. Too many absences are grounds for termination of employment. Consistent absenteeism is among the legal reasons to fire someone.
Dishonesty: Regularly lying about credentials or work is a betrayal of trust. Dishonesty can also include gossip and manipulation. Dishonesty is a fireable offense in any workplace. Dishonesty provides clear grounds for termination.
Unethical Conduct: This term covers behaviors such as theft, fraud, slander, and dishonesty. An employee with a bad attitude can seriously damage your business, especially in a small business setting, where internal culture and client relationships are vital. Unethical conduct is on the termination reasons list. Engaging in unethical behavior is one of the reasons for termination with cause.
Disobedience: A disobedient employee will disrupt your workplace and internal culture. Tasks will not be completed correctly, and coworkers will get impatient. Disobedience is a valid reason for firing an employee. Disobedience can be grounds for firing an employee after repeated offenses.
Violating Company Policy: Company policies ensure a safe and productive workplace. Adhere to the consequences outlined for policy violations. Repeated violations are grounds for termination. Violating company policy is a common reason for termination of employment.
Inconsistency: Inconsistent behavior and productivity affect business goals and results. Occasional ups and downs are normal, but frequent inconsistency is a concern. Inconsistency in work performance is among the reasons for firing an employee. Inconsistent behavior can be grounds for firing an employee.
Lack of Enthusiasm and Drive: Initial motivation might fade, but if an employee consistently lacks enthusiasm and drive, this is a valid reason for dismissal. Look for related reasons like poor performance for a more concrete basis. Lack of enthusiasm and drive are reasons to be fired. An ongoing lack of drive is grounds for termination.
Falling Behind: Regularly failing to complete tasks and relying on coworkers to pick up the slack harms workplace morale. Provide guidance and training, but if the employee continues to fall behind, terminate them. Falling behind is a valid reason for firing an employee. Falling behind on tasks is grounds for termination.
Damaging Company Property: If your employee damages company property when angry or frustrated, this is grounds for dismissal. Whether intentional or not, such actions display violence, intimidate clients and coworkers, and damage company property. Damaging company property is a reason for termination with cause. Destruction of property is a clear reason for immediate termination of employment.
Possession of Drugs or Alcohol at Work: An employee under the influence of drugs or alcohol will not perform well and could damage your company’s reputation. This is an obvious reason for firing an employee. Possession of drugs or alcohol at work is a fireable offense. Substance abuse at work provides valid grounds for termination.
Falsifying Company Records: Deception is illegal and constitutes fraud. Your employee may face prison time. To protect your business, you need to contact your business lawyer and notify the authorities immediately. Falsifying company records is a serious reason for termination of employment. Fraudulent behavior at work is among the reasons for immediate termination of employment.
Does Not Fit the Company Culture: An employee might have the right skills but not fit the company culture. This can affect team dynamics and alignment with company objectives. This is why probation periods exist, to determine cultural fit. Not fitting the company culture is a reason for firing an employee. Lack of cultural fit can be grounds for termination of employment.
Fails to Commit: A loyal employee should commit to deadlines, training, and conferences. Persistent failure to do so is a valid reason for dismissal. Failing to commit is a reason for firing an employee. Lack of commitment is a valid reason for termination of employment.
Using Company Property for Personal Business: Occasional personal use of company resources is usually acceptable, but if the employee spends significant work time on personal matters, it is grounds for termination. Using company property for personal business is grounds for termination. Misusing company resources is a reason for firing an employee.
Theft: Theft is illegal and grounds for dismissal. Petty theft includes stealing boxes of stationery, while larger theft may include stealing equipment or money from the company. Implement systems and checks to catch any theft quickly. Regular audits can be helpful. Theft is a common reason for termination with cause. Stealing company property is grounds for immediate termination of employment.
Lying on a CV: If an employee lies on their CV and cannot complete required tasks, you have grounds to fire them immediately. Their experience and skills were the basis for hiring them. Lying on a CV is a reason for firing an employee. False information on a CV is grounds for termination.
Constant Negativity: Constant negative comments can undermine work and disrupt meetings. Address the behavior privately and ensure it violates company policy before firing the employee. Constant negativity is a reason for firing someone. Negativity in the workplace can be grounds for termination.
Chatterbox: Excessive talking or gossiping that disrupts work is grounds for discipline. If the behavior continues after warnings, it is grounds for termination. Being a chatterbox can be a reason for termination of employment. Excessive talking is a reason for firing an employee.

How to Fire an Employee

When firing an employee, what you say and how you say it is important. You must remain professional at all times and show compassion. It is important not to let your emotions get the better of you.

Here are some tips to ensure you protect your company:

Get to the point – Tell the employee right away that they have been terminated and give the reason. Stick to the main reason they are being fired, do not dilute your message with a list of grievances.
Do it in private – Not only is it humane to fire an employee in private, but it will protect your business. Pick a meeting room or wait until the other employees have left for the day.
Have a witness – A member of HR, the legal department or a supervisor should attend the termination meeting as a witness. They can take notes and ensure the situation doesn’t get out of hand. They may also help explain the severance package.
Be brief but clear – Briefly explain the reason they are being terminated and that the matter is final. Do not talk about any other issues, stick to the essentials. Anything else you say could be used as ammo in a lawsuit.
Have evidence – Ensure there is evidence of the employee’s misconduct or poor performance. Have written evidence of warnings and witness statements to misconduct. These will help termination proceedings if the employee is argumentative.
Let the employees know about next steps and options – Ensure your employee knows what happens next and their rights to services. If your company provides career counselling or health care, give them information on how to claim those benefits. If you are offering a severance package, detail what it includes and what the employee needs to do in exchange.
Discuss how they will collect their things – If the employee is calm, you may escort them to collect their things and leave. However, if there is a possibility the employee may make a scene, it may be worth scheduling another time for them to collect their things. If an employee becomes physical or threatening, then you should have security escort them out of the building immediately.

Do not speak ill of a former employee. Even if they were horrible, stay professional to protect your company. Anything you say about the employee after they have been fired may be used in a wrongful termination lawsuit. Only inform employees who need to know about the termination and managers who need to know about the reasons behind the termination. Avoid creating rumors and divulging unnecessary information. Some of your employees may be friends with the terminated employee.

No matter the reason for termination, firing someone is always difficult. However, ensuring you have a termination procedure which complies with federal and state laws will help the process go smoothly. Following protocol will protect you and your company.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

Comprehensive Guide to California Employment Law: Rights, Rules, and 2025 Updates for Employers and Employees

California’s 2025 employment law updates address at-will status, contracts, workplace leave, wage rules, and discrimination protections. This overview covers employer duties and employee rights on sick leave, terminations, drug policies, family care, and work conditions.

LLC versus Corporation: Key Differences, Tax Impacts, Ownership Structures, and Management Considerations

Choosing between an LLC and a corporation affects ownership, taxes, management responsibilities, and liability protections for your business structure. Compare differences in formal requirements, legal treatment, and funding opportunities to select the best option.

Longshoreman Providers: FAQ for Maritime Employers

Best Free Payroll Software for Small Businesses and Startups in 2025

Find the best free payroll software options for small businesses and startups in 2025 with essential tools and flexible features. Compare user-friendly platforms offering global payments, tax calculations, employee portals, and cloud access at no cost.

What Services Does a California Business Lawyer Provide?

A California business lawyer helps protect your company by providing legal guidance on structure, taxation, contracts, and compliance. Their services ensure you avoid costly mistakes and navigate disputes, allowing you to focus on growth.

Where Can I Find a Business Lawyer?

Find a skilled business lawyer to navigate legal matters like contracts, trademarks, and liability issues. Protect your company with expert legal advice and support.

What Are the Requirements for a Business Contract Termination Letter?

A contract termination letter must clearly state the reason for termination, reference the original contract, and follow required notice procedures. Ensuring proper documentation and adherence to contract terms helps prevent legal disputes and wrongful termination claims.

Are Verbal Contracts Binding in California?

A verbal contract can be legally binding in California, but proving its terms in court is often difficult. Written agreements provide stronger legal protection, reducing risks of disputes and misunderstandings.

Where Can I Find a Business Lawyer Near Me?

Find a business lawyer by seeking referrals, researching credentials, and ensuring they specialize in your industry’s legal needs. Schedule consultations to assess their expertise, compatibility, and pricing structure before making a final decision.

What Is the Statement of Information and When Is It Required?

A Statement of Information is a required filing for California corporations and LLCs, providing key business and leadership details. Filing deadlines vary, requiring annual or biennial submissions to maintain compliance and avoid penalties.

What Is Indemnity and How Does It Apply to Insurance Contracts?

Indemnity protects individuals and businesses from financial loss by ensuring compensation for damages under legal agreements, including insurance contracts. Various indemnity policies cover liability, property damage, and professional risks, with terms defining coverage limits and exclusions.

What Is Gross Profit and How Is It Calculated in Financial Statements?

Gross profit represents the revenue remaining after deducting the cost of goods sold, helping businesses assess production efficiency and pricing strategies. Calculating gross profit involves subtracting direct expenses from revenue, providing insights into cost control and financial performance.

What Is Gross Income and How Does It Differ From Net Income?

Gross income includes all earnings before deductions, while net income is what remains after taxes and expenses. Understanding these figures helps determine tax obligations, loan eligibility, and overall financial health.

What Is Beneficial Ownership Information and Why Is It Important for Compliance

Beneficial ownership information helps prevent financial crimes by increasing transparency in corporate structures. Businesses should stay informed on reporting requirements to avoid penalties and ensure compliance with evolving regulations.

What Is Arbitration and How Does It Resolve Disputes?

Arbitration resolves disputes by allowing a neutral third party to make binding decisions, offering privacy and efficiency over traditional litigation. Businesses and individuals prefer arbitration for its speed, cost savings, and adaptability, ensuring enforceable outcomes across various legal frameworks.

What Is a Corporation, and How Does It Differ From an LLC?

A corporation is a separate legal entity owned by shareholders, while an LLC offers flexible management and pass-through taxation. Corporations require stricter compliance and structured oversight, whereas LLCs provide fewer formalities and adaptable ownership structures.

How Do You Incorporate a Business, and What Are the Benefits?

Incorporating a business creates a separate legal entity, protecting personal assets and offering potential tax advantages. This process enhances credibility, simplifies ownership transfer, and provides growth opportunities while requiring compliance with specific regulations.

How Do You Get an LLC, and What Are the Benefits of Forming One?

An LLC provides liability protection, tax flexibility, and management freedom for business owners. Follow seven simple steps to establish one efficiently.

How Do You Start a Business, and What Are the Legal Requirements?

Starting a business in California requires careful planning, legal compliance, and financial preparation. From selecting a business structure to obtaining permits, tax registration, and funding, each step is crucial for long-term success.

How Do Accrual Accounting and Cash Accounting Differ in Financial Management?

Accrual accounting records transactions when they are earned, while cash accounting records them when money changes hands. Choosing the right method impacts taxes, financial planning, and cash flow management for businesses.

Do I Need a Permit to Operate a Vending Machine?

A vending machine business requires permits, including a business license, EIN, and compliance with state and federal regulations. Proper location approval, ADA compliance, and product labeling are essential for legal operation and profitability.

Are There Grants Available to Start a Business?

Government and private grants provide funding to help entrepreneurs start businesses, with eligibility varying by industry, location, and business type. Opportunities include federal programs, state initiatives, and private grants supporting startups, research, and minority-owned businesses.

What Is a Stock Corporation in California – General Requirements?

A stock corporation in California raises capital by selling shares, granting investors ownership and voting rights while maintaining limited liability. These corporations, classified as C or S, follow specific legal steps, including filing Articles of Incorporation and drafting corporate bylaws.

Is a Contract Valid Only if It Is in Written Form?

A contract can be legally binding whether written or verbal, but some agreements, such as real estate deals, require written documentation. A valid contract must include clear terms, mutual agreement, legal capacity, consideration, and intent to create enforceable obligations.

What Is a Cash Receipt and Why It Matters for Business Transactions

A cash receipt records the exchange of cash during a transaction, detailing the amount, parties involved, and purchase specifics. Maintaining accurate cash receipts supports tax reporting, financial management, and dispute resolution while ensuring compliance with audits.

What Does It Mean to Have a Retainer in a Legal Agreement

8,354