When It’s Time to Cut a Low Performer (Legally & Confidently)
As leaders and business owners, we’ve all been there - holding onto an employee longer than we should. Maybe they were great at one point, maybe you feel bad letting them go, or maybe you're just dreading the headache of dealing with it. But when an employee is underperforming - or worse, toxic - they don’t just impact their own work. They affect your entire team, your culture, and ultimately, your bottom line.
So, how do you know when it’s time to let someone go? And just as important - how do you do it the right way?
Signs It’s Time to Move On
Consistently Poor Performance – Despite feedback and training, their work doesn’t improve.
Negative Attitude – Their presence brings down morale, and they create tension in the team.
Lack of Accountability – They blame others, make excuses, or resist feedback.
Cultural Mismatch – They don’t align with your company’s values and way of working.
Leadership Drain – You find yourself spending an excessive amount of time managing their issues.
Holding onto the wrong person isn’t just a frustration—it’s costly. It drains your energy and sends the message to your top performers that mediocrity (or toxicity) is tolerated.
How to Protect Your Business When Letting Them Go
Firing someone is never easy, but when done correctly, it protects your company and ensures fairness. Here’s how to handle it legally and professionally:
Document Everything – Keep records of performance issues, warnings, and any corrective actions taken.
Communicate Clearly – Don’t let them be blindsided. They should be aware of the expectations and where they’re falling short.
Follow Your Policies – Ensure you’re aligned with your employee handbook and employment laws.
Check for Risks – Consider potential discrimination claims, retaliation concerns, or contract violations.
Plan the Conversation – Be direct, professional, and compassionate. Stick to the facts and avoid personal attacks.
Ensure Final Pay & Compliance – Follow state and federal laws regarding final paychecks, benefits, and any owed compensation.
Letting someone go isn’t just about removing a problem - it’s about making space for the right people to thrive. Strong businesses are built by strong teams, and keeping the wrong person too long can cost you more than you realize.
Need Help?
If you’re facing a tough personnel decision and want guidance on how to handle it legally and strategically, we are here to help.
Download Our Free Guide to Terminations to ensure you’re making the right moves for your business!
Holding on to someone you know isn't working out — take the free HR Audit to see whether your performance and documentation systems are set up to protect you: saltandlightadvisors.com/hraudit
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Resources to keep building:
🎯 Take the free HR Audit — Score your HR systems in 5 minutes and see exactly where your gaps are.
👉 saltandlightadvisors.com/hraudit
🎙️ Listen to Don't Waste the Chaos — The podcast for small business owners building strong people operations.
📖 Get The HR Easy Button — Kerri's book on building HR systems that actually work for small businesses.
✉️ Subscribe to the newsletter — Weekly HR insights for founders, in your inbox every Monday.
👉 saltandlight.myflodesk.com/saltandlightadvisors
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