Terminating employees is a process that no one wants to be involved in. It entails a detailed checklist and careful consideration of the employee’s role within your company, as well as their needs post-termination. This guide will give you all the information necessary for terminating an individual or individuals properly without leaving anything incomplete.
With this handy termination checklist in hand, there are few things left unclear when it comes time to terminate someone from your employment. Of course, the act itself can be heart-wrenching and frustrating for both parties, especially if the employee is feeling like they’re being let go unfairly. However, following these steps closely can help the termination process go smoothly so you don’t have to worry about what happens next.
What is an Employee Termination Checklist?
A termination checklist lists items that need to be done before an employee leaves your company. These include ensuring the company has all the necessary paperwork, payroll responsibilities, payments, and more. A good point about such checklists is that they protect both you and the employees if there are any discrepancies or misunderstandings during this transitional period.
Voluntary termination
When employees decide they want to leave their company, the proper legal steps must be taken to ensure a smooth and hassle-free transition. One of these necessary actions would be submitting a resignation letter within the confines of any required timelines. The reasons for this action vary from person to person, but there can be some general trends. Employees can move on to greener pastures, go back home, start their own business, take time off work to avoid extra stress while raising children, or even pursue another profession altogether!
Involuntary termination
When an employer initiates termination, it is often due to a redundancy of the position or downsizing. Other times, involuntary terminations might be necessary because of gross misconduct and theft of company property.
Some people leave jobs on their terms, some are fired, and others quit. Regardless of the circumstances, there is a specific protocol that companies who make terminations need to meet. An employee handbook or termination checklist will cover information like severance pay, company assets that employees have access to during active employment, what payments are owed upon termination (if any), and more.
Actions to Include in an Employee Termination Checklist
Employee Resignation Letter
The employee resignation letter is more than just an essential goodbye. By giving advance notice, the employer has time to find an appropriate replacement before they have no one left in their company who can do all of the tasks required to keep it running smoothly and efficiently. It’s also vital that this document contains details about reasons for departing. Hence, future employees are aware of any toxic work environment or other challenges that could make them want to leave as well!
Notify HR Department
After obtaining a resignation letter from an employee, contact the human resource department to open a file related to the termination. This will have any information on the employee such as their name, work position, and essential details about them (such as the last day of employment), along with forms for us to complete when we terminate or lay off workers in specific departments. We should also keep paperwork coming into this office through other sources like payroll or benefits administration relating to terminations. Always link these offices back if it relates specifically to one individual’s case.
Return of Company Property
The process of handing back company property is a critical step when it comes to resigning. Examples of company property include laptops, tablets, phones, and more if they are not personal devices but owned by the employer. The company should then ask the employee to give all of his or her information back. This includes any corporate documents, pictures from work functions, and anything else that might be considered personal possession on their phone. Departing employees should also return company manuals, handbooks, or training texts to ensure a smooth transition for new staff.
Employee Benefits
After the employee is terminated, you may have to pay them all their accrued and unused vacation days. Also, confirm if they have been compensated for bonuses or company expenses that were paid for in previous months. If so, include those amounts with his final paycheck too! As a supervisor, it’s your responsibility to ensure the company policies and laws are followed before issuing payment; double-check things like taxes, insurance coverage (healthcare and life), severance pay, etc.
Confidentiality Agreements
A confidentiality agreement is a legal contract between an employer and employee that prevents the former from disclosing sensitive company information. At termination, it’s necessary to review this document with employees to know what’s expected of them regarding divulging client/company secrets after their employment ends.
Exit Interview
When an employee leaves a company, they should have their exit interview to reflect on the reasons for leaving and what attracted them most to this job in the first place. The exit interview is a good chance for the company to learn about what they could have done better or how employees feel about their job. Employees should be asked specific questions geared toward learning more from both sides of an employment experience.
Joshua F.
Redline Electric & Solar
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There are many things employers need to do when terminating an employee. The exit interview is the last step in this process. During the exit interview, employees need to fill out a forwarding address form if they plan to move from their current location or go overseas so that any future communication can be sent there instead of having mail forwarded by the company. It’s also vital for the employer to make sure that employees sign a release form during the exit interview, allowing them to provide reference information about former employees who might apply for jobs with other companies and request references. This will enable these organizations to access contact info and previous testimonials from former colleagues, which should help them determine whether someone is eligible for hire or not.
