The business is taken over recently
One of two employee has made the work place too tense. There is no employment contract signed yet. How can we get rid of such employee
May be not happy with new management.

If you wish to terminate an employee "without cause", and there is no employment contract, then you are required to provide the employee with notice of the termination, or pay instead of notice. However, there are ways in which you can limit your exposure. I would highly recommend that you contact an employment lawyer at the number below to discuss how to terminate this employee and ensure that you are not exposing yourself to a wrongful dismissal lawsuit.