Human Resources: Employee Termination Cheat Sheet by Davidpol
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.
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 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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