1. It is acceptable to fire an employee who is stealing from your business. Document whatever proof you have of the employee's theft. If there are witnesses, ask them to write down what they saw. If they aren't willing to do that, you should write down what they told you.
2. Incompetence is also a reason to fire an employee. You will be better off if you have documented your attempts at getting the employee to do the job properly. It is also better not to let this problem go on for too long. Otherwise, it may be difficult to convince the court that the employee was not competent for the job. If a new hire still really isn't "getting it" by the third month of employment, let him or her go.
3. Unexcused absences or excessive tardiness provide cause to fire an employee. Your business won't run very well if you can't expect your employees to be there and be there on time. As with any employee problems, document the instances of unexcused absences or tardiness as well as the fact that you told the employee that this was not acceptable.
4. You cannot tolerate any employee conduct that constitutes sexual harassment or any other discriminatory conduct by an employee. If the conduct is egregious enough, you should definitely terminate the employee. Document the incident and your investigation of it. Your real concern here is preventing the person who was the subject of the discrimination from suing your business.
5. If an employee is physically violent or threatens other employees, you should fire that person as well. Here again you don't want to risk a lawsuit from your other employees or anyone else that the person comes into a contact with as a result of their employment. As always, keep good records of any incidents, including information provided by witnesses.
Many other acts by employees may constitute cause for dismissal including insubordination, failure to comply with policies, and failure to comply with safety precautions, to name a few. Even when you do have cause to terminate an employee, it is always a good idea to keep records. It is one thing to have cause to fire someone and another thing to prove it.
