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Even if there is no HR policy, or even if there is no written contract, there may still be laws governing the situation. For example, there may be laws about redundancy which are relevant.
You also have at least six other sources of guidance: implicit contract terms, common sense*, common decency^, cultural customs, practice in similar companies which do have HR policies, and HR best practice in the country/industry.
* be sensible and practical, don't be foolish
^ be kind
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I FULLY AGREE WITH THE ANSWER BEEN ADDED BY MR. DUNCAN ROBERTSON,,,,,,,,,,,THANKS.
Where there is no law / rules & regulations, there is a Principles of Natural Justice. The advise to dismiss an employee basing "old" or and as there is no HR policy or rule is just against the Principles Natural Justice and can not stand in any court of law on this earth.
I just discourage such thinking.
Make sure that any release or other paperwork involved with the termination is written in plain, understandable language.
If documents are written in confusing legal jargon it is still necessary for the employee to fully understand it.
For example, in the case of Thomforde v. IBM,406 F.3d500 (8th Cir.2005), the 8th Circuit Federal Court of Appeals found that confusing language in a release did not serve to place the employee on sufficient notice that he was releasing any age discrimination claim that he had against the Company. Because of the agreement's lack of clarity and IBM's failure to explain what its language meant, the Court held that the agreement was not written so that the intended participants could understand it, as required by the OWBPA (Older Worker Benefit Protection Act). Because the release failed to satisfy OWBPA's statutory-waiver requirements, the court reinstated the case and sent it back to the trial court for further proceedings.
Any explanations about the details surrounding the termination, such as exactly when the termination is effective, what the severance pay will be, when they can expect their last check, what services are available to them to make the transition, etc. should be stated clearly, definitively and in easily understandable language.
Always tell the employee that a confirming letter will follow regarding any benefits since major "he said - she said" misunderstandings can occur at stressful meetings such as one for termination of employment.
Most people will be in an emotional state and their grasp on details and memory will probably not be at their peak.
This is one of the reasons that it is important both psychologically and legally to present information in a clear and unambiguous way. Doing so also tends to "ground" the situation and keep a rational and decisive tone to the information and its presentation.
Again, confirm all commitments in a letter so that there is documentation of exactly what it is you committed to at the time of termination.
Natural justice always exists. A fair chance of giving him/her to show cause of allegations on his/her part, providing an opportunity to be heard in person, taking into account failure of remedial and corrective measures, if any, applied on him/her earlier. ( only repetitive allegations or major loss constitute ultimate dismissal).
Note: In fact the concept of punishment and spirit underlying it is to make up mind of the accused to mend his ways and means acceptable to the people of his/her concern and society in large. Nonetheless,2nd chance depends on gravity of the crime. Major loss cannot be ignored just for the sake of2nd chance.
