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In this tutorial, Nancy shares key steps for firing an employee gracefully. First, she emphasizes the importance of providing clarity about the reasons for termination, detailing the unmet expectations. Communication should be conducted in a private setting to avoid humiliation and protect the morale of remaining employees, as public firings can be unethical. It is crucial to ensure that all actions comply with legal guidelines, with termination reasons explicitly stated in the employee's contract. Lastly, Nancy advises against leaving any loose ends in the communication process to maintain professionalism.