Everyone, I’m calling this staff meeting to let you all know that today was Sarah’s last day with the company. She left just before lunch, and I didn’t want you all wondering where she was. Out of respect for her privacy, I’m not at liberty to share the reasons for her leaving the company. I want you all to know that we treated her respectfully and handled the matter with dignity.

I also want to remind you all that any reference phone calls from prospective employers or from headhunters have to be forwarded to human resources; this is just a confirmation that you’re not permitted to give references as per company policy. I’d also ask that you refrain from any unnecessary speculation regarding her leaving.

Again, out of respect for her privacy, it’s better that we leave matters be. I want to take this opportunity to see whether any of you have questions or concerns. If not, we can all head back to work now that I’ve made the announcement. What are your thoughts, everyone? In short, this is a professional way of handling separation announcements.
You’ll have ‘‘done right’’ by the terminated worker. It won’t get back to the ex-employee that management disparaged her reputation. If coworkers engage in gossip nonetheless, management can always confirm that it did its best to minimize any discussion of the topic among the rank and file. Short and sweet and done with class, such a communication deals with the employee’s separation from the organization and allows the remaining employees to get on with business.

Taken From : The Hiring and Firing Quention and Answer Book