Employee termination checklist: what your organisation should do

How to use the termination checklist

Ending an employment relationship needs a sensitive approach. Balancing legal compliance with the human side makes it a multi-layered — and sometimes bewildering — task.

A termination checklist gives your team a clear starting point. It helps you manage exits methodically, with clarity and empathy, while protecting the organisation.

This checklist focuses on the offboarding steps only. Before following it, ensure you have already met any legal or procedural requirements tied to the termination decision (for example, performance improvement plans, remedial training, or other mandated steps in the employee’s location).

Inform the employee

After making the decision, the first step is to notify the employee promptly in a private, formal setting. Hold a face-to-face meeting — in person or via video call if they work remotely.

Do this before sending any written notice so they’re not blindsided and can prepare for next steps.

Provide written notice

After informing the employee, issue a written notice of termination. Treat this as the official record; be explicit to prevent ambiguity. Include essential details such as:

The employee’s final day

The amount of notice and redundancy pay (if applicable)

Any accrued but unused annual leave entitlements

Whether the employee must return company equipment or peripherals

Calculate the final payslip

Verify the final payslip has been calculated correctly, including pay for any notice period the employee will work.

Entitlements vary by country — and by US state. For example, some US states require payment for accrued but unused holidays, while others leave it to company policy. Likewise, redundancy pay is mandatory in some jurisdictions but not in others. Remote can help clarify Your legal liabilities and obligations when calculating final payslips.

Provide benefits information

Explain — either in person or by email — how the termination affects their benefits. For instance, if they participate in an equity incentive plan, clarify what will happen to their shares (or point them to a resource that does).

For certain benefits — such as pensions or life insurance — the provider usually supplies the details. If your colleague is employed via an employer of record (EOR) provider like Remote, the EOR will manage this.

Hold an exit interview

Use the opportunity to gather feedback about the organisation and identify ways to improve processes for current and future staff. Allow the departing employee time to ask questions; come prepared and remain composed.

If appropriate, refer to past appraisals to explain the business reasons. Unless the dismissal is due to illegal or harmful conduct (for example, theft, harassment, negligence or discrimination), consider offering a reference.

Arrange return of company property

Most employment agreements require return of physical company property (laptops, phones and other hardware). Where relevant, organise the return once the notice period ends.

If the employee works remotely and equipment must be returned, give clear packing and postage instructions. Request a shipping receipt so you can reimburse the cost.

Note that, unless the agreement says otherwise, items bought through benefits — for example a home office stipend — do not need to be returned. This typically includes chairs, desks and stationery.

Revoke all accesses

After the employee’s final day, ensure IT removes access to systems, email and, where relevant, physical sites. Ex-employees with active credentials could access your network and create a serious security risk.

This risk is higher in non-amicable separations. A disgruntled former employee with access could delete, steal or leak sensitive data.

Inform the wider team

To prevent confusion, let the rest of the team know the person has left. Be professional and avoid sharing reasons for the departure. It’s best to make the announcement after the employee’s last day and once access has been removed.

Give a point of contact and guidance for colleagues who worked closely with the leaver. If they worked with clients or stakeholders, make sure those parties are informed too.

Maintain documentation

Keep a channel open for any follow-up (for example, tax forms), and ensure all HR records relating to the employee’s employment and exit are updated and properly filed.

Remote HR Management makes this step much easier. Use it to update the employee’s status, record termination details and securely store related communications and paperwork. It integrates with our HR functions — time and attendance, expenses, payroll and (for EOR users) benefits management — so the administrative side of the exit is fast and smooth.

A centralised, secure place for these documents keeps them accessible, and Remote ensures compliance with relevant data protection laws.

Best practices for employee terminations

The checklist provides a structured approach and covers the essentials, but there will always be individual circumstances to consider.

So, whatever the circumstances, bear in mind a few universal best practices. As a rule you should:

Always assess termination risks

At every step, make sure you comply with applicable employment laws and your own policies. Failure to do so can expose the organisation to legal action, particularly in high-risk terminations.

If staff are in different countries, be sure you understand the local termination laws. The process can differ significantly between jurisdictions.

For this reason, consider working with a global HR partner, like Remote. If you choose to proceed with a termination, we assess potential risks from the details you provide and ensure compliance with local employment laws. That reduces legal exposure for your organisation and helps deliver a fairer 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. Recording each step — from the termination letter to follow-ups — helps protect your organisation.

Keeping records is also a proactive way to preserve transparency and integrity during the exit process.

Standardise the process

This can be difficult because circumstances vary widely. It’s especially challenging when team members are in different countries with differing regulations.

Still, adopting a standardised approach promotes fairness and helps reduce bias. Although legal obligations may differ, your checklist should aim for consistent treatment of staff.

How can Remote help?

Remote removes the administrative burden of managing terminations. Our Employer of Record product provides the assurance of compliant exits handled on your behalf.

Our Payroll tool helps you calculate final payslips accurately, while our free HR Management tool simplifies the administrative work. If you hire and manage people via our EOR platform, we also take care of benefits management and help ensure terminations comply with local law at every stage.

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