Employee termination checklist: actions your company must take

How to apply the terminations checklist

Terminating an employee demands a sensitive approach. Balancing legal compliance with the emotional aspects makes this a multi-layered – and occasionally perplexing – task.

A termination checklist provides your team with a practical starting framework. It helps you manage exits methodically, with clarity and empathy, while protecting the business.

Bear in mind our checklist focuses solely on the offboarding steps. Prior to following these actions, confirm that all legal prerequisites for termination have been met (for example, performance improvement plans, remedial training, or any other locally mandated procedures).

Inform the employee

After the decision is reached, the initial step is to inform the employee promptly and in a formal setting. This should occur face to face — in person or via video call if the person works remotely.

Deliver this message prior to issuing any formal paperwork so the employee is not blindsided and can prepare for the next steps.

Provide formal notice

After informing the employee, issue a written notice of termination; this serves as the formal record. Make the circumstances clear and remove any ambiguity. Include key details such as:

The employee’s final 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 the notice period they will work).

What you owe can differ between countries and US states. For instance, in some US states employees are legally entitled to accrued but unused holiday days; in others this depends on company policy. Certain countries require redundancy pay in specified circumstances, while others do not. Remote can help clarify your liabilities and legal obligations when you calculate final payslips.

Provide benefits information

Explain, either in person or by email, how the termination affects 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 does).

For certain benefits (for example pensions or life insurance), the provider usually supplies the details. If the team member is employed via an employer of record (EOR) provider like Remote, the EOR will manage this.

Conduct an exit interview

Use the opportunity to collect feedback about the organisation and identify ways to improve processes for current and future staff. It also gives the departing employee a chance to ask questions, so be prepared and remain composed.

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

Enable the return of company property

Most employment contracts require return of company property (laptops, phones and other hardware). Where relevant, arrange for these items to be returned after the notice period.

If the employee works remotely and equipment must be returned, give clear instructions on how to pack and ship it. Request a shipping invoice 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 typically includes office chairs, desks and stationery.

Revoke all access

After the employee’s final working day, ensure IT revokes access to systems, email accounts and, if relevant, physical premises. A former employee with active credentials could access your network, creating a serious security risk.

This is especially important in cases that are not amicable. A disgruntled ex-employee with access to company files may delete, steal or share sensitive or confidential information.

Let others know

To prevent confusion and maintain transparency, notify the remaining team that the employee has left. Remain professional and avoid disclosing reasons for the departure. It is preferable to announce the termination after the individual’s final day and once their access has been revoked.

Give a point of contact and instructions for colleagues who worked directly with the employee. If the employee had client or other stakeholder responsibilities, inform those parties as well.

Maintain documentation

Keep channels open for any future communications (for example tax forms), and make sure all HR records relating to the employee’s tenure and termination are updated and properly filed.

Remote HR Management makes this step much easier. You can update the employee’s status in the system, record termination details and securely store any related communications or paperwork. It is fully integrated with our other HR functions — such as time and attendance, expenses, payroll and (for EOR users) benefits management — making the whole termination process administratively quicker and more seamless.

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

Best practices for employee terminations

Although the checklist sets out a systematic approach and covers the main points, each case will have its own nuances.

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

Always assess termination risks

Ensure at every stage you comply with relevant employment laws and industry practices, along with your company policies. Failure to do so may expose the business to legal action, particularly in high-risk terminations.

For teams spanning multiple countries, fully understand the local termination laws in each jurisdiction. The required process can differ substantially between employees.

That is why working with a global HR partner is advisable, like Remote. If you decide to proceed with a termination, we assess the potential risks using the information you supply and ensure full compliance with local employment laws. This greatly reduces legal exposure for your business and helps deliver a better experience for the departing employee.

Put everything in writing

As noted, documentation is vital: it creates a single source of truth, prevents misunderstandings and can serve as evidence if legal issues arise. Recording each step — from the termination letter to follow-up communications — helps protect your company.

Documenting actions is also a proactive means to preserve transparency and integrity during the termination process.

Standardise the process

This can be difficult because the circumstances of each termination vary greatly. It is particularly challenging when team members are in different countries with differing regulations.

Nevertheless, striving for a standardised procedure promotes fairness and helps reduce bias. Although different legal obligations may apply, your checklist should aim to provide equitable treatment to all employees.

How can Remote help?

Remote removes much of the administrative burden from 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 the administrative tasks. If you hire and manage your people using our EOR platform, we also handle benefits management, and assist in ensuring that the termination is lawful and compliant with local legislation at each stage.

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