Firing an unstable employee of downsizing is a stressful event for small business owners and their employees. Preparing for such eventualities by carefully crafting and following procedures set forth in the employee handbook can help prevent the loss of workplace moral. Requiring employees to sign "at will" agreements is a current trend used by businesses hoping to avoid legal repercussions from firings and layoffs. The success of the practice is debated. While it may give businesses partial legal protection, some HR experts say it drives away talented employees and hurts workplace morale.
Establishing and practicing the following good labor relations and solid business practices is the key to avoiding negative firing or layoff repercussions.
- Even-handedly follow protocol established in employee handbooks.
- Carefully evaluate potential employees.
- Conduct routine and thorough employee performances evaluations to provide documentation should firing or layoffs become necessary.
- Consistently practice kindness toward employees.
- Conduct business in an ethical manner.
Some conventional practices associated with dismissing employees, such as Friday afternoon firings and publicly escorting a dismissed employee form the premises are now viewed as counter-productive.
To learn what human relations business experts are saying on this topic, or to locate assistance in this and other areas of employee relations, please visit the following links.
Illinois workNet 
provides helpful links to SCORE business advice, Illinois Labor Laws and Relations, Illinois Small Business Development Centers, and other entities which can provide guidance on developing employee handbooks and business protocol.
Forbes.com and HR Expert, Dave Bowman , collected articles on preventing difficulties with dismissed employees and other pertinent topics.
Business Week e-zine offers advice on firing employees.