I agree with Patrick: you should terminate the employee, immediately. Try to understand how lucky you just got here. Here&#x27;s a simple tweak to the story you told that creates a nightmare scenario: the person who reported this to you, who was called a &quot;milf&quot; by the bizdev guy, was on a PIP.<p>I disagree with Patrick on the mechanics, subject to one condition:<p>If, like a sane person, you consulted a lawyer <i>before you began hiring people</i>, and so you&#x27;re offering a standard employee agreement --- the kind every competent firm in the industry offers --- then the answer here is:<p>Just fire, and move on.<p>I don&#x27;t know that &quot;with cause&quot; adds much.<p>The principle here is pretty straightforward. You got lucky this time. A new hire crossed a serious line, and the person they irritated came to you directly with a complaint, rather than through their lawyer. You will not get lucky next time. And next time, there will be a history that you&#x27;ll be accountable for.