As the owner of your own business, you get to make the decisions about hiring and firing employees. You don’t enjoy having to terminate someone from their position, but it is necessary from time to time.
What you’re wondering, though, is if you need a specific reason to fire someone. Say that you just don’t think an employee is a good fit or you want to replace them and see if it helps the company. They haven’t done anything wrong, so you’re not firing them for cause – skipping work, making mistakes, etc. As such, the employee may think that the firing is unfair and say that you can’t fire them for no reason at all. What does the law have to say?
Are they an at-will employee?
If your employee has a contract, then you have to abide by the contract. But if they don’t have one, then they are an at-will employee. They can be fired for any reason and at any time. It doesn’t matter if the employee thinks that the reason is fair or that the firing is justified. At-will employment only persists for as long as both sides want it to, and either side can end that relationship.
The one stipulation is that the firing can’t be for an illegal reason. For instance, you can’t fire an employee due to their age, gender, religion, race or ethnic background. So, while you may not need to provide a distinct reason that shows the firing is justified, you do need to make sure that you’re not violating the employee’s rights by terminating them for an illegal reason.
Situations like this sometimes lead to disputes. Carefully consider all of your legal options.