Employee termination checklist: essential steps your company must follow

How to apply the terminations checklist

For your reference, employee terminations require a careful process. From ensuring compliance with applicable laws to managing the emotional aspects, they involve multiple layers and can be confusing.

A termination checklist provides your team with a reliable starting framework. It helps you handle terminations methodically with clarity and empathy, while protecting the company.

Please note our checklist addresses the offboarding steps only. Beyond the items below, you must have already satisfied any legal requirements before deciding to terminate the employee (including performance improvement plans, remedial training, or any other mandated process in the employee’s location).

Inform the employee

Once the decision is final, the first step is to inform the employee promptly in a formal setting. This should be a face-to-face meeting (in person or via video call if the employee is remote).

Do this before sending any formal documentation so they are not blindsided and can prepare for what comes next.

Provide formal notice

After informing the employee, provide a written termination notice. This serves as the official record—be explicit to avoid ambiguity. Include all essential details such as:

The employee’s last day of work

Notice period and severance pay (if applicable)

Any accrued but unused paid time off amounts

Whether the employee must return company equipment or other peripherals

Calculate the final payslip

Verify the employee’s final payslip has been calculated correctly (taking into account the notice period they will work).

What you owe can differ by country or US state. For example, in some US states employees are legally entitled to any accrued but unused vacation days, while in others this depends on company policy. Some countries mandate severance pay under certain conditions; others do not.Remote can help clarify your liabilities and legal responsibilities when calculating final payslips.

Provide benefits information

Clearly explain (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 what will happen to their shares (or direct them to a resource that can).

For some benefits (such as pensions or life insurance), the benefit provider is usually responsible for supplying information. If your team member is employed through an employer of record (EOR) provider like Remote, the EOR will handle this.

Conduct an exit interview

Use the opportunity to gather feedback about your company and consider how workplace processes could be improved for current and future employees. This also allows the departing employee to ask questions, so come prepared and remain composed.

If appropriate, refer to the individual’s past performance reviews to explain the business decision. If the termination is not the result of illegal or harmful behaviour (i.e., theft, harassment, negligence, or discrimination), you can also offer to write them a reference letter.

Enable the return of company property

Most employment agreements require that physical company property (laptops, phones, other hardware) be returned. If applicable, arrange for this to occur after the notice period is complete.

If the employee is remote and you require the equipment to be returned, provide clear instructions on how to package and ship it. Ask the employee to provide a shipping invoice so you can reimburse the cost.

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

Revoke all accesses

Once the employee’s final working day is over, ensure your IT team revokes access to systems, email accounts, and (if applicable) physical premises. Any former employee who still has valid credentials could access your network, which is a serious security risk.

This is particularly important if the termination is not amicable. A disgruntled individual with access to company files can potentially cause major damage by deleting, stealing, or sharing sensitive or confidential data.

Let others know

To avoid confusion and preserve transparency, inform the rest of your team about the employee’s departure. Be professional and do not disclose the reasons for the exit. It is advisable to announce terminations only after the employee’s last day and after their access has been revoked.

Provide a point of contact and guidance for those who worked directly with the departing employee. If they were responsible for clients or other stakeholders, notify those parties as well.

Maintain documentation

Keep a channel open for any future communications (such as tax forms), and ensure all HR records related to the employee’s tenure and termination are updated and filed correctly.

Remote HR Management makes this step far easier. You can update the employee’s status in the platform, document termination details, and securely store any relevant communication or paperwork related to their exit. It also integrates fully with our other HR functions such as time and attendance, expenses, payroll and (for EOR users) benefits management, making the entire termination process administratively quick and seamless.

A centralized, secure repository for these documents keeps everything easily accessible (and Remote ensures compliance with all relevant data protection laws).

Best practices for employee terminations

Although the checklist above outlines a methodical approach and covers the main points, there will always be case-by-case nuances to consider.

Therefore, regardless of the situation, remember several best practices that apply broadly. As a rule, you should:

Always assess termination risks

At every step ensure you are adhering to all relevant employment laws and your company policies. Otherwise, you may expose the company to legal action, particularly for high-risk terminations.

If you have team members in different countries, make sure you fully understand the termination laws in each jurisdiction. The process may vary significantly for different employees.

That’s why it’s a good idea to work with a global HR partner, like Remote. If you decide to terminate, we assess the potential risks based on the information you provide, ensuring full compliance with local labor laws. This significantly reduces the legal risk for your company and helps ensure a more positive experience for the departing team member.

Put everything in writing

As noted, documentation is crucial; it serves as a single source of truth, prevents misunderstandings, and can be used as evidence should any legal complications arise. By recording every step of the process, from the termination letter to follow-up communications, you are safeguarding your company.

Documentation is also a proactive way to maintain transparency and integrity throughout the termination process.

Standardize the process

This can be challenging because the circumstances around each termination may differ greatly. It’s also more complex if you have team members across countries with varying regulations.

However, by implementing a standardized procedure where possible, you promote fairness and reduce bias. While you must meet differing legal obligations, your checklist should aim to ensure equitable treatment for all employees.

How can Remote help?

Remote removes the complicated administrative work from managing terminations. Our Employer of Record product gives you the assurance of compliant terminations managed on your behalf.

Our Payroll tool enables you to calculate your employee’s final payslip accurately, while our free HR Management tool streamlines all the administrative requirements. If you hire and manage your people through our EOR platform, we also handle benefits management, and help ensure that the termination is legal and compliant with local laws at every step.

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