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Human Resources: Employee Termination Cheat Sheet by

Steps to complete when terminating an employee
employment     resources     human     employee     termination

Docume­ntation & Notifi­cation

Compile the proper docume­nta­tion.
Prepare the termin­ation letter.
Notify Human Resources.
Ask employee to write a resign­ation letter that states he/she is leaving and the termin­ation date.
Notify your network admini­strator of the date and time on which to terminate the employee’s access to computer and telephone systems.

Return of Property

Make sure employee returns all compan­y-owned items.
    Collect computer equipment
    Collect security card
    Collect cell phone
    Collect phone card
    Collect corporate credit card
Make sure employee provides his/hers superv­isors with passwords and other inform­ation pertaining to accessing computer files and telephone messages.
Make sure access to external company databases is removed.
Make sure employee’s e-mail account is canceled.
Set automatic e-mail notifi­cation to alert sender that employee is no longer employed.

Compen­sation Issues

Determine what ‘wages’ are owed.
Determine how much vacation and paid-t­ime-off has the employee earned and is owed.
Prepare inform­ation regarding rollover of any 401(k) plans and other benefit inform­ation.
Life/Disability Insurance – discon­tinue premium payments.
Obtain executed copy of employee’s final expense report.
Vested stock options

Health Insurance Contin­uation

- 60 days to elect coverage
- 45 days to send in premium for all months since coverage ceased
- premium due 1st of the month

Termin­ation of Employment

Exit Interview

Exit Interview Questi­onaire
Make sure HR office will schedule an exit interview.
Discuss approp­riate details regarding termin­ation.
Review confid­ent­iality or propri­etary inform­ation agreement.
Confirm employee’s address for future mailing of inform­ation.
Provide employee with a contact person and inform­ation for questions arising after the meeting.
Explain Non-co­mpete agreement if exists
Provide a copy of the Non-Di­scl­osure Agreement
Provide 401(k) Withdrawal Form

After the employee's last day

Check for any additional amounts owed for commis­sions, expense reports, etc.
Mail final pay stub to former employee if necessary.
Complete and submit benefit forms to stop coverage with Insurance companies
Terminate status in the HRIS system
Departure is commun­icated to staff

Four Biggest Termin­ation Mistakes

Not explaining why. If you’re looking to get sued, sugarcoat the reason you’re firing someone — or over-e­xag­gerate. Either way, you’ll have a hard time pleading your case in court.
Ignoring precedent. Consis­tency is key. If you’re new to the company, learn how the company has handled similar termin­ations in the past.
Not treating terminated employees well. Just because you’re firing someone doesn’t mean you should not treat them like a human being. It can only help your reputation if you treat a fired employee with dignity and respect. It’s the right thing to do.
Not firing at all. Sometimes the biggest termin­ation issue you can face is not taking action. Dragging your feet in firing a poor performer kills morale.

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