When an Employee Leaves: The Termination Checklist

When you terminate an employee – or they leave voluntarily – there are a number of activities you need to complete to ensure a smooth and legal transition for both the company and departing employee.  These activities should be part of your standard employee processes. It’s a good idea to have a formal checklist that you use routinely so you don’t forget anything.

In addition to completing the checklist, it’s a best practice to conduct exit interviews with terminating employees. Candid feedback, especially from good employees who are leaving, may help you determine changes needed to retain top talent going forward.

If you are terminating an employee for performance issues, be sure you have written documentation describing the issue, the steps taken to resolve it and the results.  Even though California is an “at-will” state, detailed documentation is your best defense if a legal action transpires.  When in doubt, speak with a California employment attorney.

Remove exiting employees’ access to email, the network, the company intranet and any other programs or proprietary information meant solely for the use of employees. Be sure to collect any company-owned property from them. Also, ensure that you have their most recent address and contact information for W-2s and any other follow up communications. Ask them to contact you if they move prior to year end.

For a complete list of items to include on your Termination Checklist click here.