Should an employer always give a fired employee the reason for his or her termination?
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You may have an instinctive answer to this question, as there are pros and cons to both sides. But giving a legitimate—and legal—basis behind a termination decision is probably better than providing nothing at all.
Let’s take a look at why an employer may be tempted to not give an explanation and then explore why it may be better to do so anyway, even when it’s difficult.
Why Would an Employer Want to Hide the Reason for Termination?
First, let’s consider why an employer may not want to disclose the information behind the termination. With at-will employment as the norm in the United States, an employer technically doesn’t require a cause to fire an employee*. As long as the rationale isn’t illegal, the termination can probably proceed without explanation.
Perhaps the simplest explanation for why some employers want to avoid talking about termination details is because termination without cause may appear to leave less room for discussion. If the employer does not give any explanation for the termination, the employee cannot argue why that reason is incorrect or invalid. This may appear especially tempting for managers who are conflict-averse. By avoiding the difficult conversation altogether, the process may seem simpler—even if it’s not in the end.
Another time this may happen—though hopefully not often—is when the employer’s real termination rationale is not something it wants to get into or defend and, thus, may find it easier to claim there’s no reason at all. Perhaps it’s an interpersonal issue that is resolved by terminating one of the parties involved instead of working to come to a better solution. Perhaps it’s a customer complaint that the employer just doesn’t want to deal with. These types of terminations aren’t particularly noble and, perhaps, aren’t always a smart move, but we all know that the real world is filled with imperfect scenarios and imperfect decision-making. When the employer’s reason is legal but not necessarily easy to explain or defend, the employer may feel it makes more sense to let someone go seemingly without cause, even though there really is a (poor) reason behind it.
Why an Employer Probably Should Provide a Valid Reason for Termination
Notwithstanding the points above, there are many good reasons why an employer probably should provide a valid cause for the termination—even though doing so is often difficult and frustrating for all involved. Here are a few of the reasons it’s a good idea to explain the rationale behind the decision:
- Providing a valid basis shows everyone the termination was not discriminatory, whereas providing no basis leaves it open for interpretation and could appear to be a red flag. In short, saying nothing can make the employer look like it’s hiding something—even if it’s not. This is a simple point, but its importance, perhaps, cannot be overstated. The lack of rationale behind a firing can open the door for people to second-guess—which, in turn, opens up the possibility for a discrimination claim, even if no discrimination was present. Worse yet, with the lack of termination rationale on the employer’s side, it will be that much more difficult to defend its case if a claim of discrimination or wrongful termination is raised.
- It can make it easier later to show that similarly situated individuals were treated the same way. This is relevant for terminations for cause, in particular. If someone was terminated as part of a disciplinary procedure, it’s best to document this so it can be shown that it was not only fair but also that the action was in alignment with how other employees were treated in substantially similar scenarios.
Overall, the general consensus is this: It may be legal to fire someone without cause, and it may be tempting now and then, but it’s a much safer overall practice to have a valid business reason for the termination and to document and communicate that reason.
*Note: This statement is true at the federal level, but state and local laws differ. Some areas may, in fact, require employers to provide a reason for termination. Consult with legal counsel if you’re not sure whether this applies in the locations where your business operates.