Employee termination checklist: steps your company must take

Using the terminations checklist

Employee terminations call for a careful, considered approach. They involve legal compliance and emotional elements, which together create a layered and sometimes confusing challenge.

A termination checklist provides your team with a reliable starting framework. It helps you manage exits methodically, with clarity and empathy, while also protecting the company.

Please note this checklist is limited to the offboarding steps listed below. Before following these actions, confirm you have already met any legal prerequisites related to the decision to terminate the employee (for example, performance improvement plans, remedial training, or any other locally required procedures).

Inform the employee

After the decision is finalised, notify the employee promptly in a formal setting. Hold a face-to-face meeting—either in person or by video call if the employee is remote.

Do this before sending any formal paperwork so they are not blindsided and can prepare for the next steps.

Provide formal notice

After informing the employee, issue a written notice of termination. This document serves as the official record. Be explicit to avoid ambiguity. Include key details such as:

The last day of work

The amount of notice and redundancy pay (if applicable)

Any accrued but unused annual leave balances

Whether the employee must return company equipment or other peripherals

Calculate the final payslip

Verify that the employee’s final payslip is accurate, taking into account any notice period they will serve.

Entitlements can differ by country or US state. For example, some US states require payment for accrued but unused vacation days, while in others this is determined by company policy. Some countries mandate redundancy pay in specific situations, and others do not.Remote can help clarify Your liabilities and legal responsibilities when calculating final payslips.

Provide benefits information

Explain, either in person or by email, how the termination will affect the employee’s benefits. For example, if they participate in an equity incentive plan, clarify what will happen to their shares or direct them to a resource that explains this.

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

Conduct an exit interview

Use the exit interview to gather feedback that could improve workplace processes for current and future staff. This also gives the departing employee an opportunity to ask questions, so attend prepared and remain composed.

If needed, refer to the individual’s past appraisals to explain the business rationale. When the termination is not due to illegal or harmful behaviour (such as theft, harassment, negligence, or discrimination), consider offering them a reference letter.

Enable the return of company property

Employment agreements typically require the return of physical company property (laptops, phones, and other hardware). If applicable, arrange for returns to take place after the notice period ends.

For remote employees, provide clear instructions on how to package and ship equipment if it must be returned. Ask for a shipping receipt so you can reimburse the cost.

Unless otherwise stated, items purchased through a benefit—such as a home-office stipend—generally do not need to be returned. This can include items like office chairs, desks, and stationery.

Revoke all accesses

Once the employee’s final working day has passed, instruct IT to remove access to systems, email accounts, and, if relevant, physical premises. Any former employee who still retains valid credentials could access your network, creating a serious security risk.

This is especially true when the separation is not amicable. A disgruntled former employee with access to company files might delete, steal, or share sensitive or confidential information, causing significant damage.

Let others know

To avoid confusion and preserve transparency, inform the rest of the team that the employee has left. Maintain professionalism and refrain from disclosing reasons for the departure. It is best to announce terminations after the person’s last day and once access has been revoked.

Provide a point of contact and clear instructions for colleagues who worked directly with the employee. If the person liaised with clients or other stakeholders, notify those parties as well.

Maintain documentation

Keep channels open for any required follow-up communication (for example, tax forms), and ensure all HR records related to the employee’s tenure and departure are updated and correctly filed.

Remote HR Management makes this step considerably simpler. You can update the employee’s status in the platform, record termination details, and securely archive any related communications or paperwork. It also integrates with our other HR functions—such as time and attendance, expenses, payroll and (for EOR users) benefits management—making administrative aspects of the termination process swift and seamless.

A centralised, secure repository for these documents keeps everything accessible, and Remote ensures compliance with all relevant data protection laws.

Best practices for employee terminations

Although the checklist above outlines a systematic method and covers the main points, each case will present its own nuances.

Therefore, in any situation, bear in mind some general best practices that apply across scenarios. As a rule, you should:

Always assess termination risks

At every stage, confirm compliance with applicable employment laws and your company policies to avoid exposing the organisation to legal action, particularly for high-risk terminations.

If your team spans multiple countries, ensure you fully understand the relevant termination laws in each jurisdiction; procedures can vary significantly between locations.

That’s why it’s often sensible to work with a global HR partner, like Remote. If you proceed with a termination, we assess potential risks using the information you provide, ensuring full compliance with local employment laws. This greatly reduces legal exposure for your organisation and helps deliver a more positive experience for the departing team member.

Put everything in writing

Documentation is essential; it acts as a single source of truth, prevents misunderstandings, and can serve as evidence if legal issues arise. Recording every step of the process—from the termination letter to follow-up communications—helps protect your organisation.

Keeping records is also a proactive way to preserve transparency and integrity throughout the termination process.

Standardise the process

This can be challenging because the circumstances around each termination may differ widely. It becomes even more complex when team members are based in different countries with varying regulations.

Nonetheless, aiming to implement a standardised procedure promotes fairness and reduces bias. While local legal obligations may differ, your checklist should seek to ensure equitable treatment for all employees.

How can Remote help?

Remote removes the complex administrative burden from managing terminations. Our Employer of Record product gives you confidence that terminations are handled compliantly on your behalf.

Our Payroll tool helps you calculate your employee’s final payslip accurately, while our free HR Management tool streamlines administrative tasks. If you hire and manage staff through our EOR platform, we also handle benefits management, and help ensure each step of the termination complies with local laws.

Find out how Remote’s comprehensive HR platform can ease the administrative load on your team and speak to one of our friendly experts today.