EMPLOYEE TERMINATION POLICY
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Table of Contents
EMPLOYEE TERMINATION POLICY...................................................................................................................... 3
APPENDIX A: EMPLOYEE TERMINATION CHECKLIST........................................................................................5
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EMPLOYEE TERMINATION POLICY
Prepared By:
Approved By:
Revision Date:
Effective Date:
The following sample outlines a set of policies and procedures for the completion of an employment termination
procedure.
PURPOSE
The purpose of this policy is to provide guidelines for an employment termination procedure.
SCOPE
These procedures apply to all personnel leaving an organization.
POLICY
All termination procedures should be completed under the guidance of employee relations whenever a manager
notifies employee relations of a resignation. Under special circumstances, in case of involuntary termination of a
senior manager and above, involve the president of the company.
PROCEDURES
NORMAL PROCEDURES
• Managers notify employee relations of a resignation, or a termination is conducted with the assistance of
employee relations.
• Employee relations sends managers an email reminder on their termination reporting responsibilities. This
incorporates the completion of the EAN (employee action notice) form, notification to IT, security, payroll
regarding terminated employees and serves as a checklist to obtain all necessary company equipment and
property.
• Managers complete the EAN form, submit the form and notify company telecom, desktop, network, application,
security and HR departments of the termination.
• After the form is submitted, the manager prints and completes the termination EAN form, signs it and makes
three copies to forward to employee relations.
• Employee relations reviews the EAN form; makes any necessary corrections; and includes the date of hire,
SSN and paid time off payout information.
• Employee relations signs the EAN form, makes a copy and attaches any included paperwork, such as final
attendance records, resignation letters, termination memos and related documents.
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• Employee relations forwards the original EAN and any attached paperwork to the relevant authority for
processing. (NOTE: If the EAN is received at the beginning of a pay week, forward a copy of the EAN to
payroll to process the employee’s final pay and eliminate any possible overpayments).
• Employee relations files the copy of the EAN and any attached paperwork in the terminations file drawer in the
employee relations area.
• Employee relations contacts the employee to schedule an exit interview, for voluntary resignations only,
reviews any questions on final pay and benefits, and requests employees’ signature on the resignation
acknowledgment form. Completed resignation acknowledgment forms should be forwarded to the relevant
person in the legal department.
SPECIAL CIRCUMSTANCES: NOTIFICATION RESPONSIBILITIES
• Involve the president/CEO of the company, in any decision to involuntarily terminate any senior manager who
reports to the company.
• Notify senior authority (key management personnel, inside director or executive officer) if an employee leaves
the company. There are forms these employees need to fill out immediately upon resignation or termination of
employment.
• Notify finance if a separation agreement and general release are issued in connection with a termination.
Finance should be contacted immediately following the employee notification. Please limit the information
provided to the following:
− Employee ID number
− Termination date
− Information about the separation package (severance payment amount, the value of outplacement
assistance, etc.)
• Notify internal audit if an employee is terminated based on dishonesty, theft, breach of trust or any
suspicious activity or related to any report of suspicious information. Contact relevant authorities in the audit to
discuss pertinent risk factors. The following information, at a minimum, should be given to the relevant person:
− A job description
− All computer access information available to the employee
− All information that may have risk factors affecting our customers
− Any observations from management or co-workers of suspicious or peculiar behavior
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• APPENDIX A: EMPLOYEE TERMINATION CHECKLIST
Employee Name:
Position Title:
Store/Location:
Date of Termination:
HUMAN RESOURCES
• Communicate the employee’s departure date to the human resources administrator.
• If the employee has resigned, obtain an official letter of resignation, or confirm oral resignation in writing.
• Communicate the employee’s departure to staff.
• Remove the employee’s name from distribution and phone lists.
• Verify that the employee’s home address and phone number are accurate to ensure that W-2s will be mailed to
the correct address.
• Provide the employee with a benefits status letter, including information on:
− Life insurance
− Health coverage
− Retirement plan
PAYROLL
• Ensure that the employee’s final timesheet is completed.
• Check for any outstanding payroll advances and deduct them from the final paycheck.
• Check for any vacation or sick time used, but not yet accrued, and deduct it from the final paycheck.
• Check for any unused vacation and sick time and add it to the final paycheck.
• Check for any outstanding expense reimbursements and add them to the final paycheck.
• Check for any unpaid commission or bonuses and add them to the final paycheck.
• Make the final paycheck available to the employee on their last day of work.
• Terminate the employee in the payroll system.
ACCESS TERMINATION
• Terminate the employee’s computer accounts, including:
− Username and passcodes
− Email accounts
− Change the passwords for any shared computers.
− Redirect the employee’s direct telephone number.
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RETURN OF PROPERTY
• Verify that the employee has returned:
− Keys
− Parking pass
− ID badge
− Computer
− Credit card
− Cell phone
− Other company-owned items
• Ensure that the employee leaves behind department files, manuals and computer files.
• Ensure that passwords pertaining to computer file access or telephone messages are returned.
EXIT INTERVIEW
• Schedule a confidential exit interview with the employee.
• Obtain written permission for a reference, giving the company permission to provide reference information
when potential employers call.
Completed By: ______________________ Date: ______________________
Approved By: ______________________
Human Resources Manager
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