’Tis the Season to Be Jolly… or Unemployed?!
The question comes up every year: Is it justifiable to terminate an employee right before Christmas?
The reasons can vary—poor performance, the need to reduce payroll, or even the survival of the company itself.
But there’s never a good time to terminate someone. It’s stressful, anxiety-inducing, and leaves everyone involved uncertain about what’s next.
If your company is faced with the all-too-familiar dilemma of whether to let someone go right before the holidays, here are some key points to help you handle this tricky decision with clarity, compassion, and confidence.
Is It OK to Terminate an Employee Around the Holidays?
Unfortunately, the answer isn’t so simple! Nor is there a “one size fits all” answer.
Of course, there are times when immediate termination is required—violations of zero-tolerance policies such as sexual harassment, drug or alcohol use, violence in the workplace, or disregard for public safety.
Sometimes, it’s about keeping the business running and controlling costs. Other times, it’s more complicated, requiring careful judgment.
Below are a few thoughts to guide your thinking as you weigh the decision to terminate someone before or after the Christmas holiday.
What Are Your Current Staffing Needs?
An often-overlooked consequence of terminating someone is the impact on the remaining staff. When someone leaves, their responsibilities don’t just vanish—they’re redistributed among the team. More often than not, this means:
- Longer hours for remaining employees.
- Missed personal or professional goals.
- Increased stress during an already hectic time of year.
Remember, your team is your most valuable asset. What downstream impact will this decision have on those left behind? Will they be able to handle the additional workload without compromising their own performance or morale?
How Will This Impact Employee Morale?
Not to add insult to injury, but a recent APA survey found that 88% of respondents said the holidays are the most stressful time of year. Staff are already dealing with high-stress levels, and having to take on additional work to keep the company running only adds to that mental strain.
What happens if this extra work causes an employee to miss their year-end goals, ultimately altering their Christmas bonus (if one is offered)? Not only are your existing employees inevitably experiencing more stress, but they might also feel it in their wallets. Or, even worse—what if this extra work makes them miss planned holiday time with loved ones?
What Will It Mean for Your Company’s Reputation?
Reputation has always been important, but even more so in today’s challenging labor market. Everyone is fighting for great talent, and your company’s reputation is a huge factor when candidates are deciding where to work.
Word spreads fast in the era of social media, and the last reputation you want is to be branded as “scrooges” who terminate staff right before Christmas. Ask yourself:
- How will this decision affect your team’s perception of leadership?
- Could it harm your ability to attract top talent?
People talk, and while there are always two sides to every story, how you handle terminations says a lot about your company’s culture.
Can You Coach the Employee Instead?
Chances are, if an employee is facing termination due to performance, they’ve been on a performance improvement plan (PIP). Ideally, no one should ever be blindsided by a termination if feedback has been consistent and transparent.
Job performance, if managed properly, should include clear goals, regular check-ins, and coaching to correct behaviors. So, if you’re considering termination, it’s worth asking:
- Would a few extra weeks of coaching help improve the situation?
- Could extending their employment save your remaining team from additional strain?
Sometimes, providing just a bit more support can make all the difference—for both the individual and the broader team.
But ultimately, only you can make this call as a business owner.
On the Other Hand, Will Keeping This Employee Hurt Your Business?
You also run the risk of holding on to a poor fit for too long. What if this person has a history of absenteeism and takes leave for an undetermined period? You could end up stuck with the problem longer than you expected.
Keeping someone who isn’t a good fit can frustrate your other employees. They know when someone isn’t performing well, and tolerating poor performance could lead to resentment or disengagement from the rest of your team.
It’s always easier—and often feels better—to give people more chances rather than terminate them. But this decision could become exponentially more costly for your organization.
In the End, It’s Your Call
Terminating an employee before the holidays is never easy. The key is to weigh the urgency of the situation, the impact on your remaining staff, and the message it sends about your company. Compassion and practicality both have their place, but only you can decide what’s best for your team and business.
If you’re unsure, take a step back and ask yourself:
- Is this decision absolutely necessary right now?
- How will it affect morale, productivity, and your reputation?
- Have you exhausted every alternative to termination?
Struggling with decisions about your team? A helpful tool for evaluating employee fit is
the GWC Framework: Does the employee Get it, Want it, and have the Capacity to do the job? Learn how to apply this simple but powerful framework to make better decisions for your business. Click here to read more about GWC.
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