Employee termination checklist: essential actions your company must take

How to use the termination checklist

Terminating employees is a sensitive process. It requires ensuring compliance with applicable laws and handling emotional considerations, making it a multi-layered — and occasionally confusing — task.

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

Please note the checklist focuses solely on the offboarding steps. Before following the items below, ensure you have met any required legal procedures for termination (for example, performance improvement plans, remedial training, or other mandated steps under the employee’s jurisdiction).

Inform the employee

After the decision is finalised, tell the employee promptly in a formal setting. This should be a face-to-face discussion, either in person or via video call if they work remotely.

Hold this conversation before sending any formal paperwork so the employee is not blindsided and can prepare for next steps.

Provide formal notice

After informing the employee, issue a written notice of termination as the official record. Make the facts clear 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 the employee’s final payslip has been calculated correctly, including the notice period they will serve.

Entitlements vary by country or US state. For instance, some US states require employers to pay accrued but unused holiday days as a legal entitlement, while others leave it to company policy. Likewise, some jurisdictions mandate redundancy pay in certain circumstances, while others do not. Remote can help clarify your liabilities and legal obligations when preparing final payslips.

Provide benefits information

Explain, either verbally or by email, how the termination affects the employee’s benefits. For example, if they participate in an equity incentive plan, clarify the consequences for their shares or direct them to an appropriate resource.

For certain benefits (for example, pensions or life insurance), the provider will supply details. If the team member is employed via an employer of record (EOR) provider like Remote, the EOR will handle this.

Conduct an exit interview

Use the meeting to collect feedback about your organisation and identify improvements to workplace processes for current and future staff. The exit interview also lets the employee ask questions, so be prepared and remain composed.

If needed, consult the employee’s prior appraisals to justify the business decision. Where the termination is not 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 contracts require the return of physical company property (laptops, phones and other hardware). Where relevant, arrange for this to happen after the notice period ends.

If the employee is remote and equipment must be returned, give precise packaging and shipping instructions. Request a shipping invoice so you can reimburse the cost.

Note that, unless stated otherwise, employees are not required to return items bought through a benefit, such as a home office stipend. This typically includes items like office chairs, desks and stationery.

Revoke all accesses

When the employee’s final working day ends, ensure IT removes access to systems, email, and, if relevant, physical premises. A former employee with active credentials could access the network, creating a serious security risk.

This is especially critical in cases of non-amicable departures. A disgruntled ex-employee with access to files could delete, steal or disclose sensitive or confidential information.

Let others know

To prevent confusion and maintain transparency, inform the team that the employee has left. Be professional and avoid sharing reasons for the departure. It is best to communicate the change after the employee’s final day and once access has been revoked.

Provide a point of contact and instructions for colleagues who worked directly with the employee. If the employee liaised with clients or other stakeholders, inform them as well.

Maintain documentation

Keep channels open for any future communication (for example, tax forms) and make sure all HR records relating to the employee’s service and termination are updated and properly filed.

Remote HR Management makes this step much simpler. You can update the employee’s status in the platform, record termination details and securely store any related communications or paperwork. It is fully integrated with our other HR modules — such as time and attendance, expenses, payroll and (for EOR users) benefits management — keeping the administrative side of terminations fast and seamless.

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

Best practices for employee terminations

Although the checklist offers a structured approach and covers core items, individual cases will always present unique nuances.

Therefore, regardless of circumstances, bear in mind some universal best practices. As a rule, you should:

Always assess termination risks

At each stage, ensure compliance with applicable employment laws and your company policies. Failure to do so could expose the organisation to legal action, particularly in high-risk terminations.

If team members are located in different countries, understand the local termination laws in each jurisdiction. Procedures can differ substantially between employees.

That is why engaging a global HR partner is advisable, like Remote. If you choose to proceed with a termination, we evaluate the potential risks using the information you supply and ensure compliance with local employment laws. This reduces your company’s legal exposure and helps make the process more positive for the departing employee.

Put everything in writing

As noted, documentation is essential: it serves as the single source of truth, prevents misunderstandings and can be used as evidence if legal issues arise. Recording every step — from the termination letter to follow-up messages — protects your organisation.

Keeping records is also a proactive means to maintain transparency and integrity during the termination process.

Standardise the process

Standardisation can be challenging because each termination’s circumstances may differ greatly. It is additionally more complex when team members are based across multiple countries with varying regulations.

Nevertheless, implementing a standardised procedure promotes fairness and reduces bias. Although legal obligations may vary, your checklist should aim to ensure consistent treatment for all employees.

How can Remote help?

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

Our Payroll tool enables accurate calculation of an employee’s final payslip, while our free HR Management tool streamlines the administrative workload. If you hire and manage employees through our EOR platform, we also handle benefits management, and help ensure each step of the termination complies with local law.

Find out how Remote’s comprehensive HR platform can relieve your team and speak to one of our friendly experts today.