HRMan Benefits' Blog


Termination Checklist

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Terminating an employee, whether voluntary or involuntary, is never fun, but it’s part of running a business. In the event a termination is necessary it’s helpful to have a checklist. Follow the steps below as a guide through the termination process.

Course Correction

When problems arise, effectively communicate to the employee(s) involved of their misconduct. A well designed discipline program is intended to help employees correct any shortcomings with the goal of becoming a valuable, contributing member of the workforce.

  • Notify the employee of their violation and keep records of these violations
  • Obtain signed acknowledgment from the employee in regards to the violationTermination Checklist Blog Picture
  • Provide employee opportunity to improve
  • Act immediately on allegations of harassment or other serious cases
  • Establish a complaint system and grievance program
  • Investigate if and when appropriate

Carrying Out the Termination

After addressing issues of misconduct and giving opportunities to improve, termination may be required.  This will aid in the creation of the termination report.  A termination report is crucial to the termination process, as it will be used in possible legal matters and will be recorded.

  • Complete the termination report
  • Draft the termination letter
  • Inform human resources and payroll
  • Inform those in charge of medical benefit plans

During the Meeting

Once the previous steps have been completed, a meeting will be held with the employee.  This meeting will be used to discuss various topics, such as retirement, COBRA, health benefits, and more.  Be sure to cover all necessary topics with the employee to avoid future issues.

  • Include the supervisor
  • Inform employee of the Consolidated Omnibus Budget Reconciliation Act (COBRA). This program allows a terminated employee access to their health benefits for a period of time.
  • Review retirement plan options such as a 401k
  • Communicate information regarding outplacement services
  • Establish contact

Post-Termination Actions

  • Contact your insurance broker to cancel employee benefits and issue a COBRA letter
  • Confidential information
  • Collect company information such as client lists and trade secrets
  • Issue final paycheck (complying with state requirements)

What steps do you take when terminating an employee? How do you overcome challenges? Share your comments with us below.

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Author: hrmanbenefits

Anderson Thornton Consultants is a full-service insurance brokerage and employee benefits management firm based in Tampa, Florida, servicing businesses all over the United States.

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