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Employee Separation checklist


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Employee Separation checklist This Employee Separation checklist can help the business managers in completing the procedures necessary for dismissing an employee in a correct and smooth manner comprising some common HR formalities, repealing of his/her functions, and closing all outstanding issues. This checklist will guide you through some basics and specifics of this important process. 

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Employee Separation Process: 

  • Employee Separation is a process of canceling employment of a person who wishes to leave the organization. It refers to learning the employee’s legacy, his/her reasons to quit employment, disintegrating him/her from the business processes, closing out all financial and administrative issues and relations with the employee, and making sure that no any loose ends or doubts remain between him/her and the organization;
  • The Process starts from the moment when the employee gives a notice to his/her employer about the intention to quit. Individuals may terminate their employment for various reasons, voluntary or involuntary;
  • To launch the process formally the employee needs to submit appropriate letter to his/her supervisor (a formal letter of resignation), and to receive a formal acceptance of the letter of resignation;
  • Once the employee gives his/her notice to the management and receives the formal acceptance, his/her work-related financial transactions and records need to be frozen by HR department, and the employee’s manager can be assigned to handover and finalization of working tasks and duties appointed to the employee;
  • For a better management, a well-defined individual separation plan needs to be drawn up, reasoning from the organization’s policy (this plan needs to fit specificity of each employee, according to sort of his/her position, scope of responsibility, expertise and service history);
  • Process usually moves along three parallel and interrelated branches:
    • (Working duties): Finalizing and closing out all pending work-related issues, such as handling any uncompleted tasks, resolving open questions and pending commitments, handing over the employee’s authority to an appropriate deputy (transferring employee’s functions to a newly employed specialist or to a temporal replacement);
    • (Formalities): Completing the paperwork that is necessary to formally accomplish his/her employment in organization and close all company’s liability; it is formed up from a set of HR-procedures regulated by government and corporate regulations, such as terms of employment contract. On this track, the employee’s reasons to quit are derived and analyzed, the compensation (and/or other benefits) are calculated and assigned as appropriate, all fiscal payments get covered, all outstanding remunerations, bills and traveling vouchers are paid out, and all employee’s documents (such as resume, history of employment, recommendations, etc) are composed/updated and handed out;
    • (Administrative): Collecting and inspecting of all the company’s items previously borrowed to the employee (tools, computers, vehicles, mobile devices, etc), and ensuring that they are properly checked and returned to the company’s inventory, and also all other administrative issues are closed (this could be clarified with a help of special audits investigating status of financial, workplace, property and other work-related matters); to check a bigger list of items see the Employee Exit Checklist;
  • Once the employee’s leaving date has been confirmed, a company-wide announcement should be published, so that all concerned staff members can finalize and close any outstanding matters of collaboration between them and the departing employee beforehand, and also the employee’s business network should be informed (all business contacts, partners & customers who had been maintaining stable collaborative relations with the departing employee during a long time);
  • If applicable, the organization can sign up certain agreements with exiting employee (these agreement may include the following items):
    • Non-Disclosure Agreement stating that the employee commits to keep confidentiality of any business information obtained while he had been working in the company;
    • Non-Compete Agreement assuring that the employee agrees not to compete with his former employer in the open market;
  • In order to minimize direct and indirect costs (costs incurred for exit interviews, ...

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