If you have followed the proper processes and have collected the right evidence, you incur no more risk by including the reason for layoff in your memorandum. A owner generally doesn't have a Human resource organization to give advice. Lastly, sit down with the jobholder and discuss the firing letter. How you handle any layoff depends on its risk. You can also choose to fire someone because they are not meeting performance expectations or even if they have a bad outlook. According to the law, you are not. In this case, it's important for you to follow the proper procedures in the small business. In short, you should provide the specific rationale for terminating the jobholder, their problem behaviors and dates these problems occurred. It is a mistake to assume that by firing one worker, the others will improve their performance. Having a sample letter of insubordination on file can help you through most insubordination issues.

As a small business owner, you often have to deal with multiple problems, including handling problem employees. I hope you now see that firing a problem individual while not "fun" is the only recourse you have when you want to upgrade results and esprit de corps. Give the reason for the termination. By following a formal program and making your termination letter worker foolproof, you're protecting your small business and, at the same time, minimizing disruption in the workplace. He is likely unhappy in his current position, and the lesser position is likely a better fit for his skills and career goals.