Employee termination checklist: essential actions your business must take

Ending an employment relationship demands sensitivity. From meeting applicable legal obligations to handling the emotional side, it can be a complex — and at times bewildering — process.

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

Bear in mind that the checklist focuses solely on offboarding. Prior to the steps below, you must have completed any legal prerequisites for dismissal (such as performance improvement plans, remedial training, or other mandatory procedures in the employee’s jurisdiction).

Notify the employee

After the decision is taken, the initial step is to inform the employee directly and in a formal setting. This ought to be a face-to-face meeting — in person or via video call if they work remotely.

Communicate this before issuing any formal paperwork so the employee isn’t caught unawares and can prepare for the next steps.

Provide formal notice

After informing the employee, supply a written termination notice. This is the official record; make the circumstances clear and remove any uncertainty. Include key information such as:

The employee’s final working day

The amount of notice and redundancy pay (if applicable)

Any accrued but unused annual leave

Whether the employee must return company equipment or other peripherals

Calculate the final payslip

Verify that the employee’s final payslip has been calculated correctly (including the notice period they will serve).

Amounts owed depend on the country or US state. For instance, in certain US states, employees must receive payment for accrued but unused holiday entitlement, whereas elsewhere this may be determined by company policy. Some jurisdictions require redundancy pay under specific conditions, while others do not. Remote can help clarifyYour liabilities and legal responsibilities when calculating final payslips.

Provide benefits information

Set out (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, explain the consequences for any shares (or direct them to a resource that does).

For certain benefits (for example pensions or life cover), the provider will usually supply details. If your colleague is employed via an employer of record (EOR) provider such as Remote, the EOR will take care of this.

Conduct an exit interview

Use the opportunity to obtain feedback about the organisation and consider improvements to workplace processes for current and future staff. It also allows the employee to raise questions, so be prepared and remain calm.

If necessary, refer to the person’s prior appraisals to justify the business decision. Where the dismissal is not due to illegal or harmful conduct (for example theft, harassment, negligence or discrimination), consider offering to provide a reference.

Facilitate the return of company property

Most contracts require that physical company property (such as laptops, phones and other hardware) be returned. Where relevant, arrange for this to take place once the notice period ends.

If the employee works remotely and equipment needs to be returned, give clear instructions on packaging and postage. Request a shipping receipt 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 covers items like office chairs, desks and stationery.

Revoke all access

When the employee’s final working day is over, ensure IT removes access to systems, email and, where relevant, physical sites. A former employee with active credentials could access your network and create a serious security risk.

This risk is greater following a non-amicable dismissal. A disgruntled person with access to company files could cause considerable harm by deleting, stealing or sharing sensitive or confidential information.

Inform others

To prevent confusion and maintain transparency, notify the rest of the team that the employee is leaving. Remain professional and do not disclose reasons for the departure. It is best to announce the termination after the employee’s final day and once access has been removed.

Give a point of contact and instructions for colleagues who worked directly with the departing employee. If they handled clients or other stakeholders, inform those parties as well.

Keep documentation

Keep a channel open for any future correspondence (for example tax forms), and make sure all HR records relating to the employee’s employment and termination are updated and filed correctly.

Remote HR Management makes this task considerably simpler. You can update the employee’s status in the system, record termination details, and securely store any associated communications or paperwork. It also integrates fully with our other HR functions — such as time and attendance, expenses, payroll and (for EOR users) benefits management — streamlining the administrative side of terminations.

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

Best practices for employee terminations

Although the checklist above offers a methodical approach and covers the main points, individual circumstances will always introduce nuances.

Accordingly, regardless of the situation, keep in mind some best practices that apply across cases. As a general rule, you should:

Always assess termination risks

Make certain that at every stage you comply with applicable employment laws and your internal policies. Failure to do so can expose the organisation to legal claims, particularly in higher-risk dismissals.

Where you employ staff across different countries, ensure you fully understand the local termination laws. Procedures can vary substantially between jurisdictions.

That is why partnering with a global HR provider, like Remote. If you proceed with a termination, we will evaluate the potential risks using the details you supply, ensuring compliance with local employment law. This lowers the company’s legal exposure and helps create a better experience for the departing employee.

Put everything in writing

As noted, documentation is essential: it provides a single source of truth, reduces misunderstandings, and can serve as evidence if legal issues arise. By recording each step — from the termination letter to subsequent correspondence — you protect the organisation.

Keeping records is also a proactive method to preserve transparency and integrity through the termination process.

Standardise the process

This can be challenging because circumstances differ widely for each dismissal. It is particularly hard when you have employees in multiple countries with varying regulations.

Nevertheless, developing a standardised procedure promotes fairness and helps guard against bias. Although legal obligations may vary, your checklist should aim to ensure consistent treatment of all employees.

How can Remote help?

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

Our Payroll tool enables you to calculate your employee’s final payslip accurately, while our free HR Management tool streamlines all administrative tasks. If you recruit and manage people via our EOR platform, we also administer benefits management and help ensure every step of the termination is lawful and compliant with local regulations.

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