Employee termination checklist: what your business should do

How to use the termination checklist

Ending someone’s employment calls for a considered approach. Between meeting applicable laws and handling the emotional side, the process can be complex — and at times difficult to navigate.

A termination checklist gives your team a practical starting point. It helps you manage the process methodically, with clarity and empathy, while protecting your business.

This checklist focuses solely on the offboarding steps. Before you reach these actions, make sure any legal requirements tied to the decision to terminate (such as performance improvement plans, remedial training or other mandated procedures in the employee’s jurisdiction) have already been met.

Inform the employee

After the decision is confirmed, tell the employee promptly in a formal setting. Ideally hold a face-to-face meeting — in person or by video call if they’re remote.

Do this before issuing any formal paperwork so they aren’t caught off guard and can prepare for what comes next.

Provide formal notice

After informing the employee, supply a written notice of termination. This serves as the official record. Be clear and avoid ambiguity. Include essential details such as:

The last day of work

The amount of notice and redundancy pay (if applicable)

Any accrued and unused annual leave balances

If the employee must return company equipment or other peripherals

Calculate the final payslip

Confirm the final payslip is accurately calculated, including any pay for the notice period they will work.

Entitlements can differ between countries and, in the US, from state to state. For example, some US states require payment for accrued but unused holiday leave, while in others it depends on company policy. Similarly, some countries mandate redundancy pay under certain conditions and others do not.Remote can clarify your liabilities and legal obligations when working out final payslips.

Provide benefits information

Explain, either face-to-face or by email, how the termination affects the employee’s benefits. For example, if they participate in an equity incentive plan, clarify what will happen to their shares or point them to a resource that does.

For certain benefits — such as pensions or life insurance — the provider will usually supply the necessary information. If your team member is employed through an employer of record (EOR) provider such as Remote, the EOR will manage this.

Conduct an exit interview

Use the opportunity to gather feedback about your organisation and identify improvements to workplace processes for current and future staff. It also gives the departing employee a chance to ask questions, so come prepared and stay composed.

If needed, consult the person’s past appraisals to justify the business decision. Where the termination isn’t due to illegal or harmful conduct (for example, theft, harassment, negligence or discrimination), consider offering a reference letter.

Enable the return of company property

Most employment agreements require the return of company property (laptops, phones and other hardware). If relevant, arrange for this to happen after the notice period ends.

If the employee is remote and equipment needs returning, give clear instructions on packing and shipping. Ask them to obtain a shipping invoice so you can reimburse the cost.

Unless stated otherwise, employees are not required to return items bought through a benefit — for example, a home office stipend. This typically covers office chairs, desks and stationery.

Revoke all accesses

After the employee’s final day, ensure IT removes access to systems, email accounts and, where relevant, physical sites. A former employee who still has credentials can gain access to your network and create a serious security risk.

This is especially critical if the departure is not amicable; a disgruntled ex-employee with access could delete, steal or share sensitive or confidential information.

Let others know

To prevent confusion and maintain transparency, let the rest of the team know the employee is leaving. Be professional and refrain from sharing reasons for the departure. It’s best to make the announcement after the employee’s final day and once access has been removed.

Give a point of contact and clear instructions for colleagues who worked closely with the employee. If they handled clients or stakeholders, inform those contacts as well.

Maintain documentation

Keep a channel open for any follow-up communication (for example, tax forms), and make sure all HR records relating to the employee’s employment and termination are up to date and filed correctly.

Remote HR Management makes this step significantly easier. You can update the employee’s status in the system, log termination details, and securely store related communications or paperwork. It also integrates with our other HR functions — time and attendance, expenses, payroll and (for EOR users) benefits management — so the administrative side of a termination is fast and seamless.

A centralised, secure repository keeps these documents accessible, and Remote maintains compliance with applicable data-protection laws.

Best practices for employee terminations

The checklist offers a structured approach and covers the essentials, but every case will have unique nuances to consider.

So, regardless of the situation, keep a few overarching best practices in mind. As a rule, you should:

Always assess termination risks

At every stage, ensure you comply with applicable employment laws and your company policies. Failing to do so can expose your organisation to legal action, particularly where the termination involves higher risk.

If your team spans multiple countries, make sure you understand the termination laws in each jurisdiction — the process can vary significantly between employees.

That’s why partnering with a global HR specialist can help, like Remote. If you choose to proceed with a termination, we assess potential risks using the details you supply and ensure compliance with local employment laws. That reduces legal exposure for your organisation and helps provide a better experience for the departing team member.

Put everything in writing

Documentation is essential — it creates a single source of truth, avoids misunderstandings and can serve as evidence if legal issues arise. Recording each step, from the termination letter to follow-up messages, protects your organisation.

Keeping records also promotes transparency and integrity throughout the process.

Standardise the process

This can be difficult because each termination’s circumstances can differ greatly. It’s even more complex when team members are in different countries with varying regulations.

Still, adopting a standardised procedure promotes fairness and limits bias. While local legal obligations might differ, your checklist should strive to treat all employees equitably.

How can Remote help?

Remote removes the administrative burden from managing terminations. Our Employer of Record product provides the assurance of compliant terminations handled on your behalf.

Our Payroll tool helps you calculate your employee’s final payslip precisely, while our free HR Management tool streamlines admin tasks. If you hire and manage people via our EOR platform, we also manage benefits management, helping to make sure each step of the termination complies with local laws.

Discover how Remote’s comprehensive HR platform can reduce the pressure on your team and speak to one of our friendly experts today.