Employee termination checklist: steps your organisation must follow

Using the terminations checklist

Ending an employment relationship needs to be handled sensitively. Balancing legal compliance with the emotional aspects makes the process layered and, at times, bewildering.

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

Please note the checklist focuses solely on the offboarding steps. Before following it, you should have completed any required local procedures that led to the decision to terminate — for example, performance improvement plans, remedial training, or other mandated steps in the employee’s jurisdiction.

Inform the employee

Once a decision is reached, the first task is to inform the employee in person in a formal setting. This should be a face-to-face meeting — in person or via video call if they work remotely.

Communicate this before issuing any written documents so the individual is not taken by surprise and can prepare for the next steps.

Provide formal notice

After informing the employee, supply a written notice of termination. This serves as the formal record. Make the situation clear and remove any ambiguity. Include the key details, for example:

The last day of work

The notice period and any redundancy pay (if applicable)

Any accrued but unused annual leave entitlements

Whether the employee must return company equipment or other peripherals

Calculate the final payslip

Ensure the employee’s final payslip is calculated accurately, taking into account the notice period they will serve.

Entitlements vary between countries and US states. For instance, some US states require employers to pay accrued but unused holiday days, while in others this is dictated by company policy. Certain countries require redundancy pay in specified circumstances, while 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 supply a source of further information.

For some benefits (such as pensions or life insurance), the provider of those benefits will supply the details. If your team member is employed through an employer of record (EOR) provider such as Remote, the EOR will handle this.

Conduct an exit interview

Use the meeting to gather feedback on the organisation and identify opportunities to improve processes for current and future staff. It also gives the departing employee an opportunity to ask questions, so be prepared and remain composed.

Where appropriate, draw on prior appraisals to explain the business rationale. If the dismissal was not due to unlawful or harmful conduct (for example, theft, harassment, negligence or discrimination), consider offering to provide a reference.

Enable the return of company property

Most employment contracts require the return of physical company property (laptops, phones and other hardware). Where relevant, arrange for this to take place after the notice period ends.

If the employee works remotely and equipment is to be returned, give clear packaging and shipping instructions. Request a shipping invoice so you can reimburse the cost.

Note that, unless the agreement specifies otherwise, employees are not required to return items bought through a benefit — for example, a home office stipend. This typically covers items such as office chairs, desks and stationery.

Revoke all accesses

When the employee’s final working day is over, ensure IT removes access to systems, email accounts and, where relevant, physical premises. A former employee who still holds valid credentials could access your network, creating a significant security risk.

This risk is heightened if the departure is not amicable. A disgruntled former employee with access to company files may delete, steal or disclose sensitive data, causing major harm.

Let others know

To prevent confusion, inform the wider team that the employee is leaving. Remain professional and avoid sharing reasons for the departure. It is best to make any announcement after the employee’s last day and after their access has been removed.

Give a point of contact and guidance for colleagues who worked closely with the employee. If they dealt directly with clients or stakeholders, notify those parties as well.

Maintain documentation

Keep a channel open for any follow-up communications (for example, tax documents), and ensure all HR records of the employee’s employment and termination are updated and filed appropriately.

Remote HR Management makes this process much simpler. You can update an employee’s status in the system, record termination details and securely store relevant communications and paperwork. It also integrates with our other HR functions — such as time and attendance, expenses, payroll and (for EOR users) benefits management — helping to make the administrative side of termination swift and straightforward.

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

Best practices for employee terminations

Although the checklist sets out a systematic approach and covers the principal points, individual cases will always have their own nuances.

For that reason, keep a set of universal best practices in mind. As a general rule, you should:

Always assess termination risks

At every stage, ensure compliance with applicable employment laws, practices and your company policies. Failure to do so may expose the organisation to legal claims, especially in higher-risk terminations.

If your team members are located in different countries, make sure you understand the termination laws that apply in each jurisdiction. Procedures can vary considerably between locations.

That is why working with a global HR partner is advisable, like Remote. If you choose to proceed with termination, we evaluate the potential risks based on the details you supply and ensure compliance with local employment law. This lowers legal exposure for your company and helps provide a better experience for the departing employee.

Put everything in writing

As noted, documentation is vital: it provides a single source of truth, prevents misunderstandings and can serve as evidence if legal issues arise. Recording each step — from the termination letter to subsequent communications — helps protect your organisation.

Documentation also promotes transparency and integrity throughout the process.

Standardise the process

This can be challenging because the circumstances of each termination differ greatly. It is also more complex when team members are spread across countries with varying regulations.

Nonetheless, implementing a standardised approach promotes fairness and reduces bias. Although legal obligations may differ, your checklist should strive for consistent treatment of all staff.

How can Remote help?

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

Our Payroll tool helps you calculate final payslips accurately, while our free HR Management tool streamlines the administrative tasks. If you employ and manage staff via our EOR platform, we also take care of benefits management and work to ensure the termination complies with local laws at every stage.

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