CSLB Contractor's Law & Business Practice Exam

If an employer wants to fire an employee based on performance, what is the most recommended first step?

1. Dismiss the employee without warning

2. Conduct a performance review discussion

3. Immediately put the employee on probation

4. Consult with HR without informing the employee

The correct answer is: Conduct a performance review discussion

The most recommended first step when an employer wishes to fire an employee based on performance is to conduct a performance review discussion. This approach encourages open communication and allows the employer to clearly articulate the specific areas where the employee is underperforming. By holding a discussion, the employer gives the employee an opportunity to understand the issues, provide feedback, and potentially improve their performance. This method fosters a constructive environment, which is critical for addressing performance-related issues. It also serves as documentation for any future actions the employer may take regarding employment termination, as it shows that the employer took reasonable steps to rectify the situation before deciding to let the employee go. Engaging in a dialogue promotes fairness and can sometimes lead to improved outcomes, either through the employee making changes or through a mutual decision regarding the employment status. In contrast, dismissing an employee without any prior warning does not give the individual a chance to rectify their performance and could potentially lead to legal challenges for the employer. Placing an employee immediately on probation without prior discussion might also seem abrupt and not provide the necessary feedback for improvement. Lastly, consulting HR without informing the employee could lead to misunderstandings, a lack of transparency, and could also prevent the employee from having a chance to rectify the issues affecting their