You have 12 employees and someone on your team isn’t working out. You know it. They probably know it. But you have never actually fired anyone before, and the thought of getting it wrong – a lawsuit, an unemployment dispute, a discrimination claim – is making you stall.
Stalling is the problem. The longer you wait without documentation, the harder a defensible termination becomes.
Here is what the process actually looks like, from the moment you recognize there is an issue to the day you have the conversation.
Start the Clock at Day 1: Document Everything
Most first-time founders treat documentation as something you do after you decide to terminate. That is backwards.
The moment performance becomes a real concern – missed deadlines, quality issues, conduct problems, attendance patterns – start writing it down. Date-stamped emails, notes from conversations, specific examples with measurable impact. Not “attitude problem.” More like: “On March 4th, Sarah missed the client deadline we discussed in our February 28th check-in. This is the third missed deadline in six weeks.”
Specificity is what makes documentation defensible. Vague notes about someone’s “attitude” or “not being a fit” create exposure. Specific, dated records of actual performance failures create a paper trail.
You do not need a formal HR system to do this. A Google Doc with dates and facts works fine at your stage.
Days 30-60: Build the Performance Improvement Plan
A PIP is not a formality before firing someone. Done right, it is a documented, good-faith attempt to give the employee a clear path to success – and it protects you if they do not take it.
A defensible PIP has four components:
- Specific performance gaps – what is not meeting the standard, with examples
- Clear expectations – exactly what “meeting the standard” looks like going forward
- Timeline – typically 30 days, sometimes 60 for complex roles
- Check-in schedule – weekly or bi-weekly touchpoints documented in writing
Put it in writing. Have the employee sign it acknowledging receipt (not agreement – just that they received it). Keep a copy.
The goal is clarity. If the employee improves, great. If they do not, you now have documented evidence that the issue was communicated, expectations were set, and support was offered.
Day 60-90: Final Warning and Decision Point
If performance has not improved after the PIP period, issue a written final warning before termination. This is a short document – one page is fine – that states the performance gaps remain unresolved, that the PIP period has concluded, and that continued employment is at risk.
This step feels redundant to a lot of founders. It is not. It is one more layer of documentation showing the employee had notice and opportunity.
At this stage, you also want to review two things before you schedule the termination meeting:
- Is there anything in this person’s recent history that could look retaliatory? A complaint they filed, a protected leave they took, a conversation about accommodation? If yes, talk to an employment attorney before you move forward.
- Is your documentation clean? Consistent, specific, and dated from before you made the decision?
The Termination Meeting: Logistics and What to Say
Keep it short. This is not a negotiation or a therapy session.
Who should be in the room: You, the employee, and ideally a second manager or HR witness. Never do this alone. The witness is there to document what was said.
What to say: Be direct and clear in the first 30 seconds. “We are ending your employment effective today.” Do not build up to it. Do not soften it with a 10-minute preamble about how much you appreciate them. The employee needs to hear the decision immediately.
What not to say: Do not apologize excessively, over-explain, or get drawn into a debate about whether the decision is fair. Do not say “this is not about your performance” if it is. And do not say anything that contradicts your documentation.
What to cover: Final paycheck timing (check your state law – some states require same-day payment), return of company property, system access revocation, and COBRA if applicable.
The meeting should take 15-20 minutes. Have the logistics prepared before you walk in.
The Part Most Founders Skip
Employment law compliance at this stage is not just about following a checklist. It is about having someone review your documentation before the meeting, not after a claim is filed.
This is exactly the kind of situation Claudia Castillo coordinates for growing companies. She specializes in employer-side employment law and works with founders who are navigating their first terminations – reviewing documentation, advising on PIP structure, and walking through the final meeting logistics so nothing gets said that creates exposure.
If you have a termination on the calendar and you are not sure your documentation holds, schedule a strategy review before that meeting happens.
Visit garcia-zamor.com or call (410) 531-9853.
About Garcia-Zamor: We’re the fractional general counsel for innovators-protecting both your business operations and your intellectual property. Ruy Garcia-Zamor leads business growth strategy, Elliott Alderman (former Copyright Office attorney, 40+ years IP expertise) handles intellectual property, and Claudia Castillo specializes in employment law. Contact us at garcia-zamor.com or (410) 531-9853.
