6 Things to Include in an Employee Termination Checklist
Estimated reading time: 5 minutes
When employees leave an organization, some things need to be wrapped up, materials collected, forms signed, and internet access disconnected on the terminating employee.
An effective way for a Human Resources management system to ensure all termination issues are addressed is to create a termination checklist.
A checklist serves as a reminder to follow up on all termination issues.
This helpful tool can be referred to when conducting an exit interview to ensure that all topics are covered and that all business possessions are collected before the employee walks out the door.
Use a termination checklist to avoid forgetting an important step in the process.
For instance, use the checklist to ensure employees return keys or building access cards.
6 Things to Include in an Employee Termination Checklist
1. Exit Interview
When employees leave employment, it is important to conduct an exit interview to gain helpful information from the departing employee.
You want to learn about their experience as an employee.
Departing employees can provide a wealth of information about how the business is managed.
Take the time to ask a few questions or ask them to fill out a survey so you can capture their unique perspective.
For instance, one question on the exit interview may ask about compensation practices, resulting in learning that your compensation strategy needs to be updated.
More importantly, you want to find new ways to improve employee retention and create a healthy workplace where employees are engaged and personally fulfilled.
2. Collect Employer Property
Most employees use employer property as part of their job.
For instance, an employee may have keys to the building, a company credit card, or a business laptop.
All company property should be returned before the employee leaves their job.
It is much easier to collect these possessions when the employee is in the building.
Think about those things that might be in an employee’s possession, and make sure you collect them before they walk out the door.
3. Access Cancellation
The digital age that we all work in results in employees having access to business accounts.
Many employees need access to these accounts to do their job, so keep track of those accounts and act as soon as an employee puts in their notice of resignation.
One of the first things you should be doing is canceling any access the employee might have to computer files and buildings.
Maintain a list of access rights for each employee so you can be sure to update those rights.
For instance, if your employee has admin rights to your company website, social media accounts, or business accounting system, make sure those access rights are canceled before the employee walks out the door.
Instruct your IT person to cancel passwords to any company’s digital files so you can secure your company’s electronic data.
4. Benefits
Most businesses offer benefits to their employees.
When an employee terminates, make sure you cancel any associated benefits.
For instance, let the employee know when their health, dental, and life insurance will expire.
Should a departing employee decide to take advantage of COBRA, make sure you walk them through the process of signing up within the required time period.
Also, remind them of their responsibility to pay their premiums to maintain that coverage.
If your company has an employer-sponsored retirement benefit, provide your departing employee with the necessary information for rolling over to a new provider.
This section of the termination checklist aims to ensure employees are aware of benefit terminations and that they have access to retirement account information.
5. Final Pay
Employees often leave employment in the middle of a pay period.
Help the employee understand your company policy for calculating and distributing their final paycheck.
For instance, if your business is on a bi-weekly pay schedule, explain your policy for calculating final pay.
Make sure your payroll department calculates final hours worked as well as any unpaid vacation or PTO hours.
Help the employee understand the internal process and when they can expect to receive those final payments.
6. Farewell Party
Not all terminations are voluntary. However, when a faithful employee leaves, take the time to celebrate.
Show your appreciation to the departing employee by hosting a farewell party.
Gather the staff and host a breakfast, lunch, or after-work happy hour to allow co-workers the opportunity to say goodbye and wish them well.
If budget allows, purchase a small gift to share as a token of your gratefulness for their contribution to the organization.
Celebrating the departure of a faithful employee also sends an important message to those remaining employees because it reinforces your commitment to recognizing employees for their contributions.
Every organization does things differently.
Use these sample items to help you think through what should be included in your business termination checklist.
To access an editable copy of this form, click here.
Lastly, conducting an exit interview can provide valuable feedback for an employer.
Using a termination checklist can ensure all termination issues are taken care of before that departing employee walks out the door.
Does anyone have items to add to this checklist?
