Employee termination checklist: actions your company must take

How to apply the terminations checklist

Please be advised that employee terminations demand a sensitive approach. They require compliance with applicable laws and attention to emotional factors, making them a multi-layered — and occasionally perplexing — challenge.

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

Kindly note that this checklist addresses the offboarding steps only. Prior to the actions below, ensure you have satisfied all legal requirements for termination (including performance improvement plans, remedial training, or any other mandatory process applicable in the employee’s jurisdiction).

Inform the employee

After the decision is finalised, the first action is to notify the employee directly and in real time, in a formal setting. This should be a face-to-face meeting — either in person or via video call if the employee is remote.

Communicate this before issuing any formal paperwork so the employee is not blindsided and can prepare for the next steps.

Provide formal notice

After informing the employee, supply a written termination notice. This serves as the official record. Be clear and avoid ambiguity. Include all relevant details, for example:

The employee’s final 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 has been calculated correctly, taking into account the period of notice they will serve.

Liabilities differ by country or US state. For instance, some US states require payment for accrued but unused holiday days as a matter of law, while in others this is governed by company policy. Certain countries mandate redundancy pay under specified conditions; others do not.Remote can help clarify your liabilities and legal responsibilities when calculating final payslips.

Provide benefits information

Explain, either during the meeting 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 point them to a resource that can).

For some 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 such as Remote, the EOR will take care of this.

Conduct an exit interview

Use the opportunity to gather feedback about the organisation to identify how you could improve workplace processes for current and future employees. The exit interview also allows the departing employee to pose questions, so attend prepared and composed.

If necessary, refer to the employee’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), you may offer to provide a reference letter.

Enable the return of company property

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

If the employee is remote and equipment must be returned, supply clear instructions for packaging and shipment. Request a shipping invoice so you can reimburse the expense.

Please note that, unless stated otherwise, employees are not required to return items purchased via benefits such as a home office stipend. This typically includes office chairs, desks, and stationery.

Revoke all accesses

After the employee’s final working day, ensure your IT team revokes access to systems, email accounts, and, if applicable, physical premises. A former employee retaining valid credentials could gain entry to your network, creating a significant security risk.

This risk is heightened in non‑amicable terminations. A disgruntled ex‑employee with access to company files may inflict serious harm by deleting, stealing, or disclosing sensitive or confidential information.

Let others know

To prevent confusion and maintain transparency, notify the rest of the team that the employee is leaving. Maintain professionalism and do not disclose reasons for the departure. It is recommended to announce terminations after the employee’s last day and after access has been revoked.

Provide a point of contact and instructions for colleagues who worked directly with the departing employee. If the employee had client or stakeholder responsibilities, inform those external contacts as well.

Maintain documentation

Keep a channel open for any future communications (for example, tax forms), and ensure all HR records concerning the employee’s tenure and termination are updated and securely filed.

Remote HR Management makes this stage considerably simpler. You can update the employee’s status in the system, record termination details, and securely archive any pertinent communications or paperwork. It is fully integrated with our HR functions — including time and attendance, expenses, payroll, and (for EOR users) benefits management — which streamlines the termination process from an administrative standpoint.

A centralised, secure repository for these documents keeps everything easily accessible (and Remote remains compliant with applicable data protection laws).

Best practices for employee terminations

Although the checklist above offers a structured approach and addresses the principal points, individual cases will always present nuances that require careful consideration.

Consequently, regardless of the situation, it is advisable to observe certain best practices that apply broadly. As a rule, you should:

Always assess termination risks

At every stage, ensure compliance with relevant employment laws, recognised practices, and your company policies. Failure to do so may expose your organisation to legal action, particularly in high-risk terminations.

If team members are located in different countries, you must fully understand the termination laws that apply in each jurisdiction. The process can differ substantially between individuals.

For this reason, it is prudent to collaborate with a global HR partner, like Remote. If you choose to proceed with a termination, we will evaluate the potential risks from the information you supply, ensuring full compliance with local employment laws. This substantially reduces legal exposure for your company and helps deliver a more positive experience for the departing team member.

Put everything in writing

As noted, documentation is essential; it provides a single source of truth, prevents misunderstandings, and may serve as evidence should legal complications arise. By recording each step — from the termination letter to follow-up communications — you protect the company.

Documentation also represents a proactive measure to preserve transparency and integrity throughout the termination process.

Standardise the process

This can be challenging because circumstances around each termination may vary widely. It is particularly difficult when team members are located in different countries with differing regulations.

Nevertheless, implementing a standardised procedure promotes fairness and reduces bias. Although you may need to fulfil different legal obligations, your checklist should seek to ensure equitable 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 administrative tasks. If you hire and manage your people through our EOR platform, we also handle benefits management, helping to ensure that each step of the termination complies with local law.

Learn more about how Remote’s comprehensive HR platform can relieve pressure on your team and speak to one of our friendly experts today.