Terminated Employee Checklist
Botched terminations cost $40,000-$125,000 in wrongful termination lawsuits. This Terminated Employee Checklist protects your business during high-risk separations. Disable access immediately, recover property, calculate final pay correctly, handle benefits properly, and document everything thoroughly. Follow state-specific final pay deadlines: California requires same-day payment for fires, 72 hours for resignations. One missed step creates significant liability. Cover immediate actions, security removal, property recovery, final compensation, benefits termination, legal compliance, communication management, and post-termination tasks. Execute terminations professionally every time.
Immediate Termination Actions
□ Disable all system access immediately
□ Deactivate security badges
□ Change door codes/locks if necessary
□ Retrieve company property
□ Secure work area and files
□ Remove from premises appropriately
□ Collect personal belongings
□ Provide termination letter
□ Explain final pay details
□ Document termination meeting
□ Have witness present
□ Maintain professionalism
Security & Access Removal
□ Disable Active Directory account
□ Close email account
□ Revoke VPN access
□ Remove from all systems
□ Cancel software licenses
□ Change shared passwords
□ Remove from databases
□ Block building access
□ Cancel parking access
□ Remove from visitor lists
□ Update security with photo
□ Archive digital files
Property Recovery
□ Collect laptop/computer
□ Retrieve mobile phone
□ Return company vehicle
□ Collect credit cards
□ Get office keys
□ Retrieve access badges
□ Return uniforms
□ Collect equipment
□ Get parking permits
□ Retrieve files/documents
□ Document all returns
□ Assess any damages
Final Compensation
□ Calculate final wages
□ Process accrued PTO
□ Compute prorated bonus
□ Include commissions owed
□ Deduct advances
□ Process within state timeline
□ Prepare final pay stub
□ Document all calculations
□ Issue payment
□ Cancel future payments
□ Stop direct deposit
□ Close expense accounts
Benefits Termination
□ End health insurance
□ Process COBRA notification
□ Stop retirement contributions
□ Cancel life insurance
□ End disability coverage
□ Stop FSA contributions
□ Cancel other benefits
□ Provide benefits summary
□ Explain continuation options
□ Process final claims
□ Update beneficiaries
□ Send required notices
Legal & Compliance
□ File termination paperwork
□ Complete separation notice
□ Process unemployment forms
□ Send COBRA notice
□ Provide WARN notice if required
□ Document termination reason
□ Secure releases if applicable
□ Update personnel file
□ Maintain confidentiality
□ Follow legal requirements
□ Store documentation
□ Report to government if required
Communication Management
□ Notify HR immediately
□ Inform senior management
□ Brief immediate team
□ Notify affected departments
□ Inform clients if needed
□ Update vendors
□ Remove from website
□ Update directories
□ Change email signatures
□ Redirect phone calls
□ Manage external communication
□ Address rumors professionally
Post-Termination Tasks
□ Conduct exit interview if possible
□ Transfer responsibilities
□ Reassign projects
□ Update org chart
□ Plan for replacement
□ Address team morale
□ Review security risks
□ Monitor for data breach
□ Handle reference requests
□ Process unemployment claims
□ Manage any disputes
□ Learn from situation
How the Terminated Employee Checklist works
Disable all system access before the termination meeting starts for security. Retrieve company property during the meeting with a witness present for protection. Calculate final pay including accrued PTO based on state law requirements. Issue COBRA notices within 14 days of termination date. Process final paycheck within state deadlines: immediate to 30 days depending on your location. Document everything thoroughly.
Wrongful termination suits average $40,000-$125,000 in settlements. Late final paychecks trigger penalties of $100-$500 per day in many states nationwide. Failure to issue COBRA notices costs $110-$200 per day per affected employee. Stolen data from former employees costs companies $200,000+ on average in damages. Proper termination processes prevent devastating lawsuits and protect sensitive information.
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