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In this tutorial by Nancy from Career Views, she outlines key steps for gracefully firing an employee. First, provide clarity by clearly explaining the reasons for termination and what organizational expectations were not met. Communication should always occur in a private setting to avoid humiliation and maintain employee morale, as public firings can be unethical. Ensure that all actions comply with legal guidelines, referencing the reasons for termination as outlined in the employee's contract. Maintaining professionalism and respect throughout the process is essential.