Employee termination checklist: essential actions your company must take

How to apply the terminations checklist

Employee terminations demand a careful approach. Between meeting legal obligations and managing the emotional aspects, they form a multi-layered — and at times perplexing — challenge.

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

Note that this checklist addresses only the offboarding steps. You must already have fulfilled any legal obligations before deciding to terminate (for example, performance improvement plans, remedial training, or other locally required procedures).

Notify the employee

Once a decision is reached, first tell the employee directly in a formal setting. Hold a face-to-face meeting (either in person or via video call if the employee is remote).

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

Provide formal notice

After informing the employee, supply a written termination notice. This serves as the official record. Make the circumstances clear and avoid ambiguity. Include essential details such as:

The employee’s last day of work

The amount of notice and redundancy pay (if applicable)

Any accrued but unused annual leave entitlements

Whether the employee must return company equipment or other peripherals

Calculate the final payslip

Verify the employee’s final payslip is calculated correctly, including any notice period the employee will work.

Liabilities differ by country or US state. For example, some US states require payment for accrued but unused holiday days; in others, entitlement depends on company policy. Some countries mandate redundancy pay in specific circumstances, while others do not. Remote can help clarify Your liabilities and legal responsibilities when calculating final payslips.

Provide benefits information

Explain—either in person or by email—how the termination will affect the employee’s benefits. For instance, if they are enrolled in an equity incentive plan, clarify what will happen to their shares or provide a resource that explains it.

For some benefits (such as pensions or life insurance), the benefit provider will provide the necessary 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 exit interview to gather feedback on how you could improve workplace processes for current and future staff. Allow the departing employee to raise questions—come prepared and remain composed.

If necessary, refer to the individual’s past appraisals to explain the business decision. If the termination is not the result of illegal or harmful behaviour (for example theft, harassment, negligence, or discrimination), consider offering them a reference letter.

Arrange return of company property

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

If the employee works remotely and equipment must be returned, give clear instructions on how to package and ship it. Request a shipping invoice so you can reimburse the cost.

Note that, unless otherwise specified, employees need not return items bought via a benefit, such as a home office stipend. This includes items like office chairs, desks, and stationery.

Revoke all accesses

After the employee’s final working day, ensure IT removes access to systems, email accounts, and, where applicable, physical premises. A former employee with active credentials could access your network, which presents a significant security risk.

This risk is heightened in non-amicable departures. A disgruntled individual with access to company files may delete, steal, or share sensitive or confidential data, causing substantial harm.

Let others know

To avoid confusion and maintain transparency, tell the rest of your team that the employee has left the company. Be professional and avoid disclosing reasons for departure. It is best to announce the termination after the employee’s last day and once their access has been revoked.

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

Maintain documentation

Keep a channel open for any future communications (for example, tax forms), and ensure that all HR documents related to the employee’s tenure and termination are updated and filed appropriately.

Remote HR Management makes this step much easier. You can update the employee’s status in the system, document termination details, and securely store any relevant communications or paperwork related to their exit. It also integrates with our other HR functions—time and attendance, expenses, payroll and (for EOR users) benefits management—making the administrative side of terminations fast and seamless.

A centralised, secure repository keeps these documents accessible, and Remote remains compliant with applicable data protection laws.

Best practices for employee terminations

The checklist provides a structured approach and addresses the essential points, but there will always be case-by-case nuances to consider.

Therefore, regardless of the circumstances, keep a small set of best practices in mind. As a rule, you should:

Always assess termination risks

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

For team members in other countries, fully understand the local termination laws. The process can differ significantly between jurisdictions.

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 employment laws. This reduces legal exposure for your company and helps create a more positive experience for the departing team member.

Put everything in writing

Documentation is essential; it serves as a 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 communications—helps protect your company.

Keeping records is also a proactive way to preserve transparency and integrity throughout the termination process.

Standardise the process

This can be challenging because each termination may arise from very different circumstances. It is further complicated when team members fall under differing international regulations.

By introducing a standardised procedure you promote fairness and reduce bias. Although legal obligations may vary, aim for a checklist that supports equitable treatment of all employees.

How can Remote help?

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

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

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