Letting go of some employees is a part of business, after all, you want A Players on your team that help you grow your home service business. But the paperwork – ick – not fun, but skipping it can create a stack of new problems.
In this episode, we’re digging into the real-life steps you need to take when it comes to terminating an employee—especially if you want to avoid costly legal mistakes. From documenting poor performance to knowing when and how to offer a release agreement, employment attorney Philip Siegel lays it all out in a way that makes sense for home service business owners.
You’ll walk away with clear, practical advice you can use to protect your business, your profits, and your peace of mind. If you’ve ever felt unsure about how to handle a tough employee situation the right way, this episode is for you.
What You’ll Learn…
- Why documenting issues before employee termination can save you thousands later
- The one phrase that could trigger a discrimination claim if you’re not careful
- How to make sure no one’s “surprised” by an employee termination—especially investigators
- What every small business needs to know about firing someone over 40
- The real reason firing unsafe workers protects more than just your bottom line
- How a well-timed meeting can keep employee termination from turning into a lawsuit
- The key step that makes your severance agreement hold up if challenged later
Key Moments…
[2:14] Why Documentation Matters Long Before Employee Termination Happens
[10:05] The Real Risk of Surprising an Employee at Termination
[18:18] What to Include in a Release Agreement After Termination
[25:42] Key Mistakes That Turn Employee Termination Into a Legal Mess
[30:19] How to Handle an OSHA Inspection Without Making Things Worse
[38:50] Why Keeping Unsafe Workers Can Quietly Drain Your Profits
[44:34] The Profit Leak Hiding Behind Avoiding Employee Termination Decisions
Why Documentation Matters Long Before Employee Termination Happens
If you’re thinking about letting someone go, the worst time to start documenting issues is the day before you do it. Employee termination needs a paper trail that clearly shows a pattern of poor performance or unsafe behavior. Without it, you’re wide open to legal headaches that can eat into your time and money. Having a record of meetings, warnings, and expectations lets you show that the decision wasn’t random or unfair. It also protects your business from discrimination claims and gives you peace of mind that you’ve done things by the book.
The Real Risk of Surprising an Employee at Termination
An employee who’s caught off guard at a termination meeting is more likely to believe they’ve been wronged. Employee termination shouldn’t come as a surprise if you’ve been giving clear feedback all along. When someone doesn’t see it coming, that’s when they start thinking about lawyers and filing complaints. You can avoid this by setting clear expectations and having those tough conversations early. It’s not always easy, but it’s better than scrambling to defend yourself later.
What to Include in a Release Agreement After Termination
When you part ways with an employee, sometimes it makes sense to offer severance pay in exchange for a signed release of claims. Employee termination agreements like these need to be done right, especially if the person is over 40. There are specific legal terms that have to be included, or the agreement won’t hold up. If you’re pulling a template off the internet and hoping it covers you, that’s a gamble. It’s worth taking the time to have this buttoned up so you’re not looking at legal trouble a few weeks down the line.
Key Mistakes That Turn Employee Termination Into a Legal Mess
You might have every reason to let someone go, but if the paperwork isn’t there, it can backfire fast. Employee termination can get messy when you haven’t documented meetings, warnings, or the reasons behind the decision. This is especially true if the employee falls into a legally protected category. Even when you know you’ve done the right thing, it’s the process that protects you, not just the facts. Taking shortcuts can mean you end up spending time and money defending yourself instead of running your business.
How to Handle an OSHA Inspection Without Making Things Worse
When OSHA shows up, how your team handles that first hour can make or break the case. Employee termination might be the last thing on your mind in that moment, but it matters if safety issues have been ignored. If you’ve kept someone on who has a history of unsafe behavior, it could come back to bite you. Make sure your supervisors know what to say, who should be the point person, and that they don’t sign anything without preparation. A calm, clear plan keeps you in control instead of scrambling to explain things later.
Why Keeping Unsafe Workers Can Quietly Drain Your Profits
It’s tempting to hang on to someone who shows up every day, especially when labor is hard to find. But if they’re careless or unsafe, it adds up fast—and not just in safety fines. Employee termination might feel like a last resort, but not letting someone go when you should can create a ripple effect that hits morale, quality, and your insurance. The hard truth is that one person’s shortcuts can put your entire team and company at risk. Safety issues need to be documented and addressed before they turn into something bigger.
The Profit Leak Hiding Behind Avoiding Employee Termination Decisions
Sometimes the most expensive mistake in your business isn’t something you did—it’s what you didn’t do. Avoiding employee termination when it’s clearly needed can cost you more than just a few bad days. It eats into your profits, slows down the rest of your team, and increases the chance of accidents or lawsuits. It’s not about being heartless—it’s about protecting the business you’ve worked so hard to build. Taking action early, the right way, helps you stay focused on growth instead of cleaning up messes later.
About Philip Siegel:
Philip Siegel is a member of the Georgia Bar, the Atlanta Bar Association, and the American Bar Association and is admitted to practice in all State and Superior Courts in Georgia, as well as the United States District Court, Northern District of Georgia. Philip has also represented clients in the construction industry before the National Labor Relations Board, the Occupational Safety and Health Review Commission, the Department of Labor, and the Equal Employment Opportunity Commission.
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