{"id":6349,"date":"2021-03-10T08:00:24","date_gmt":"2021-03-10T16:00:24","guid":{"rendered":"https:\/\/www.careerarc.com\/blog\/?p=6349"},"modified":"2023-12-15T12:02:50","modified_gmt":"2023-12-15T20:02:50","slug":"employee-termination-checklist-easy-process","status":"publish","type":"post","link":"https:\/\/www.intoo.com\/us\/blog\/employee-termination-checklist-easy-process\/","title":{"rendered":"Employee Termination Checklist: Make The Process Easier!"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">One of the reasons employee terminations can feel difficult to manage is that the process has so many steps to keep track of. From putting together a severance package to collecting key cards, an employee termination requires a lot of work and attention to detail from HR professionals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Forget or mismanage a step, and you could face serious consequences, ranging from wrongful termination lawsuits to embarrassing misuse of company emails by ex-employees. That\u2019s why an employee termination checklist can be helpful to keep track of all the details.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Use the following employee termination checklist to help employees make their exit as smoothly as possible while protecting your company\u2019s resources and reputation.<\/span><\/p>\n<h2>Employee Termination Checklist<\/h2>\n<h3><span style=\"font-weight: 400;\">1. Get the details about the employee termination.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Whenever there is a termination of employment, it\u2019s important to note the reason for the event. In the case of a voluntary termination, the employee is making the choice to leave\u2014usually to pursue another job, start a new business, or retire. Involuntary terminations, on the other hand, are initiated by the company. In these cases, the employee is either laid off or fired.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Record the type of termination in the official company and employee files, and follow the specific procedures that apply to each case in the steps that follow.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" id=\"longdesc-return-25436\" class=\"aligncenter size-full wp-image-25436\" src=\"https:\/\/www.intoo.com\/wp-content\/uploads\/sites\/5\/2023\/11\/Untitled-design-11.jpg\" alt=\"An employee hands his manager a resignation letter\" width=\"640\" height=\"426\" longdesc=\"https:\/\/www.intoo.com\/us?longdesc=25436&amp;referrer=6349\" \/>2. Ask for a letter of resignation, or prepare a termination letter.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If the employee is leaving voluntarily, request a written letter of resignation\u2014along with the effective date\u2014for your files. If your company is firing the employee, prepare a termination letter to give the employee at the termination meeting. Some states require written letters, but even if yours doesn\u2019t, providing a letter will help protect you from lawsuits as well as provide the exiting employee with closure. Therefore, it&#8217;s an essential step in the employee termination checklist.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Notify other departments about the employee termination.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An employee exit requires coordination between departments. Affected departments include:<\/span><\/p>\n<ul>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>The exiting employee\u2019s department: <\/b><span style=\"font-weight: 400;\">Give the affected department as much time as possible to reassign clients and other duties in preparation for the employee\u2019s departure.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Human Resources:<\/b><span style=\"font-weight: 400;\"> Your department handles most of the work of exiting an employee. As such, any department facing an employment termination should inform you as early in the process as possible to ensure a smooth transition.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Payroll:<\/b><span style=\"font-weight: 400;\"> In some states, companies are required to provide their employees with their final paychecks on their last day of work. Let your payroll department know about an employee\u2019s departure well before this final day so that a check can be prepared in time. The last paycheck might also include accrued vacation time and reimbursement for business expenses.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Information Technology: <\/b><span style=\"font-weight: 400;\">Alert your IT department about pending employee departures so preparations can be made. Your IT department will need to handle all necessary changes to email accounts and distribution lists, phone extensions, and passwords. IT should also let you know what company-owned electronics should be collected from the departing employee.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Security:<\/b><span style=\"font-weight: 400;\"> Should circumstances require it, enlist a member of the security team to be present at the termination meeting and to escort the employee out of the building. You may also need security\u2019s help to change access codes or deactivate keycards to your building.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Facilities management: <\/b><span style=\"font-weight: 400;\">When an employee departs, your company will need to update phone lists and directories, reassign office mailboxes, and change office nameplates or other signage. Coordinate with facilities management to ensure that these details are taken care of.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Finance: <\/b><span style=\"font-weight: 400;\">If the exiting employee held company credit cards or managed other company financial accounts, make sure the finance department knows to cancel or reassign those accounts.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Legal:<\/b><span style=\"font-weight: 400;\"> Check with legal to see if there are any employment contract issues to keep in mind while terminating specific employees. In addition, if the exiting employee is in the U.S. on a work visa, make sure to cover any related legal requirements and responsibilities your company may have as the employer.<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><b>Administrative:<\/b><span style=\"font-weight: 400;\"> Let the receptionist and other key administrative staff know about staff departures so they are able to reroute calls and inquiries to the appropriate people.<\/span><\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" id=\"longdesc-return-25437\" class=\"aligncenter size-full wp-image-25437\" src=\"https:\/\/www.intoo.com\/wp-content\/uploads\/sites\/5\/2023\/11\/1_Untitled-design-12.jpg\" alt=\"An HR manager informs an employee that she's being terminated, following steps on the employee termination checklist\" width=\"640\" height=\"426\" longdesc=\"https:\/\/www.intoo.com\/us?longdesc=25437&amp;referrer=6349\" \/>4. Notify affected employees as required by law.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If your company has 100 or more full-time employees, you\u2019re required by the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/eta\/layoffs\/warn\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Worker Adjustment and Retraining Notification (WARN) Act <\/span><\/a><span style=\"font-weight: 400;\">to give written notice to employees 60 days before the date of a mass layoff.<\/span><\/p>\n<p><a href=\"http:\/\/www.intoo.com\/us\/blog\/how-to-lay-off-employees-script-what-to-say\/\"><span style=\"font-weight: 400;\">Layoffs<\/span><\/a><span style=\"font-weight: 400;\">, which generally involve letting go of multiple employees, pose additional challenges that require keeping track of more legal, financial, and administrative issues. Download Intoo\u2019s <\/span><a href=\"http:\/\/resources.intoo.com\/outplacement\/rif-checklist?utm_source=website&amp;utm_medium=blog\"><span style=\"font-weight: 400;\">Reduction-In-Force Checklist<\/span><\/a><span style=\"font-weight: 400;\">; this is an employee termination checklist specific to layoffs that provides a 16-step guide to help you successfully manage a reduction-in-force.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">5. Prepare a severance package and employee separation agreement.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If your company is going through a layoff, it is customary to offer affected employees a severance package. Even though your company is not required to provide severance pay to exiting employees, many companies do so to protect brand reputation and foster goodwill.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another reason a severance package is essential to include in your employee termination checklist is that this package can help mitigate lawsuits. In exchange for receiving the package, you can ask the departing employee to sign an employee separation agreement. By signing, the employee agrees not to sue the company for wrongful termination or additional severance benefits. An employee separation agreement might also include a non-compete clause or non-disclosure agreement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A severance package generally includes severance pay\u2014usually based on the number of years the employee has worked for the company and the seniority of the employee\u2019s position\u2014as well as continuation of health benefits and other perks. Take care to follow any existing severance policies, individual contracts, or labor agreements.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">6. Engage outplacement services.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the case of involuntary terminations, companies often offer departing employees an outplacement package. These packages are intended to assist employees in finding a new job quickly, and include services such as career coaching and resume review. Usually, companies engage an outplacement service provider to offer these services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Providing outplacement services helps companies save money on unemployment claims and mitigate the threat of lawsuits. Employees who receive <\/span><a href=\"https:\/\/resources.intoo.com\/outplacement\/outplacement-roi?utm_source=website&amp;utm_medium=blog&amp;utm_campaign=\"><span style=\"font-weight: 400;\">outplacement<\/span><\/a><span style=\"font-weight: 400;\"> help are also likely to retain a positive image of their former employer, which helps companies to retain a positive brand reputation.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">7. Gather materials for the termination meeting.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the case of a voluntary termination, a formal termination meeting isn\u2019t necessary. Still, setting up a time to meet with the departing employee to take care of final details and conduct an exit interview will make the process easier to manage. For voluntary terminations, plan a termination meeting where you\u2019ll inform the employee that they are being fired or laid off.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In either case, employee termination checklist items you\u2019ll need to bring to the meeting include:<\/span><\/p>\n<ul>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">final paycheck<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">employee files<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.workforce.com\/2019\/06\/17\/how-long-of-a-leash-must-you-give-an-employee-before-firing\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">a documented history of performance issues<\/span><\/a><span style=\"font-weight: 400;\"> in the case of a firing<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">COBRA notice (If your company has 20 or more employees and offer group health insurance, you must allow terminated employees to continue their coverage for a limited period of time.)<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">notices about other insurance or benefits, including supplemental insurance, life insurance, Flexible Spending Accounts (FSA), Health Savings Accounts (HSAs), and Dependent Care Assistance Programs (DCAP), if applicable<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">retirement plan options<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">severance package and severance check, if applicable<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">employee separation agreement<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">non-compete or non-disclosure agreements, if applicable<\/span><\/span><\/li>\n<li style=\"padding-bottom: 18px;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">information about outplacement services<\/span><\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">8. Hold the termination meeting.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For involuntary separations, schedule and hold a termination meeting as the final step in your employee termination checklist. A prepared script can help you make sure you cover all the details while keeping the conversation on track. INTOO\u2019s <\/span><a href=\"http:\/\/resources.intoo.com\/outplacement\/intoo-outplacement-layoff-notification-guide?utm_source=website&amp;utm_medium=blog\"><span style=\"font-weight: 400;\">Layoff Notification Guide<\/span><\/a><span style=\"font-weight: 400;\"> offers a handy sample script. At this meeting, you\u2019ll also answer questions the exiting employee may have, get key documents signed, give the employee their paycheck and other materials you\u2019ve prepared, and reclaim company property like electronics, uniforms, keys, and ID cards.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An employee\u2019s departure can make for an emotional and challenging time. While goodbyes are rarely easy, having an employee termination checklist in place can at least help you better manage the logistical details of the process, making for a smoother transition. <\/span><span style=\"font-weight: 400;\">INTOO\u2019s outplacement program helps employees transition to new jobs through one-on-one, on-demand coaching from premier career counselors, resume reviews, and other career services. <\/span><a href=\"http:\/\/www.intoo.com\/us\/solutions\/outplacement\/what-is-outplacement\/\"><span style=\"font-weight: 400;\">Learn more<\/span><\/a><span style=\"font-weight: 400;\"> about how our outplacement program can benefit your company when you\u2019re transitioning employees.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the reasons employee terminations can feel difficult to manage is that the process has so many steps to keep track of. From putting together a severance package to collecting key cards, an employee termination requires a lot of work and attention to detail from HR professionals. Forget or mismanage a step, and you [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":23496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[15,77,19,46],"tags":[76,63,148,150,206,143],"class_list":["post-6349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr","category-layoffs","category-outplacement","category-tips","tag-layoffs","tag-outplacement","tag-severance","tag-severance-package","tag-termination-checklist","tag-terminations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Simple &amp; Easy Employee Termination Checklist - INTOO US<\/title>\n<meta name=\"description\" content=\"Use our employee termination checklist to help make an employee&#039;s exit as smooth as possible and protect your company\u2019s reputation. 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