03/17/2025
I’ve heard this countless times. A frustrated manager storms into HR, demanding an immediate termination.
Perhaps an employee missed a deadline, botched a project, or clashed with a team member. Operations are under pressure, the stakes are high, and they want fast action.
But as HR professionals, we know it’s never that simple. Impulsive terminations aren’t just risky; they can backfire—legally, financially, and culturally.
In Canada, the average cost to replace an employee is $30,674, encompassing rehiring expenses and lost productivity.
For some organizations, these costs soar even higher, with 15% of businesses estimating turnover expenses to exceed $100,000 per employee each year.
Moreover, wrongful termination lawsuits can be financially devastating. Settlements in Canada typically range from $5,000 to $90,000, but in egregious cases, they can escalate significantly.
For instance, a British Columbia case resulted in an award exceeding $800,000.
So, what’s the right approach?
↳ Step one: Take a breath. Before reacting, gather all the facts. What actually happened? What does the employee’s record say? Is this a pattern or a one-time mistake?
↳ Step two: Follow due process. Ensure company policies, labor laws, and contracts are respected. A rushed termination without documentation or a fair process can expose the company to legal trouble.
↳ Step three: Communicate strategically. Managers don’t always see the bigger picture. Your role is to balance business needs with legal and ethical considerations. Sometimes, coaching or a performance improvement plan is a better alternative.
The best HR professionals don’t just execute terminations—they manage risk, protect culture, and ensure fairness.
Handling these situations with a cool head and a strategic mindset is what sets true HR leaders apart.
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