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It's important to handle dismissals properly for several reasons: Legal - In order to avoid potential lawsuits, you must dismiss employees properly. If you fire someone in front of others in a vulgar or undignified way, they may have grounds for a lawsuit. As well, in the words you use to terminate, you mishandle the termination, that may also be grounds for a lawsuit, i.e. "Your services are no longer needed because you aren't able to lift 50 pounds." If the job doesn't require lifting 50 pounds, then you would have wrongfully dismissed the employee. Throw a union into the mix, and you'll potentially have even bigger problems. Monetary - Wrongfully terminating an employee can cost the company money, i.e unemployment benefits, as well as any monies from a lawsuit and all the capital invested in handling the lawsuit. For the most part, the State takes the side of the terminated employee vs. the company which is why, even if you have valid grounds for terminating and poor performance is documented progressively, you may lose the case. The Human Side or Company Philosophy - We're all human. Most people don't want to be fired, so from a human perspective, it's important to leave a terminated employee with their dignity. Terminating employees in a respectful manner can help lessen the possibility of the company earning a bad reputation in the community as well as with other employees. Most, but not all companies belive the right thing to do is terminate employees in a respectful manner. It's part of their corporate culture. NOTE: Many states are "at will" states, which means employers can fire employees without reason or cause, but this does not guarantee lawsuits and unemployment benefits won't be filed for and won.
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