• Home
  • Services
    • Cash Flow Forecasting
    • PPP Loan Forgiveness Assistance
    • Accounting Services
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Consulting for QuickBooks®
    • Training for QuickBooks
    • Cloud Accounting
    • Business Formation Services
    • Business Compliance and Filings
  • QuickBooks Products
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Mobile Accounting
  • Blog
  • About
    • About
    • Send Us Your Referrals
  • Contact
(770) 777-4115
info@evolbussolutions.com
September 10, 2020

What to Do When an Employee Is Terminated

Rosalind Fletcher Business Tips

ShareTweetPinterestLinkedin

Every company should have a strict process to follow when an employee leaves the company, no matter what type of termination it is – voluntary or involuntary. Here’s a checklist you can use to compare to your own process so that you can either confirm you’re on the right track or add some ideas to improve your current methods.

1. Collect the resignation letter.

While so many things are remote these days, you MUST get the employee’s resignation letter in writing and signed by them.  If they don’t supply one, create a form they can sign that includes the reason for termination.

If you initiated the termination, have the employee sign the notice of dismissal.

This is not only important for general human relations records, it’s also important this year for any Paycheck Protection Program forgiveness documentation if the employee turned down a hire-back request. There may also be a requirement to submit the paperwork to your state’s unemployment office.

2. Handle legal and benefits issues. 

  1. Collect any company advances owed by the employee.
  2. Ask the employee if they have any final expense reports to file.
  3. Remind the employee that certain legal requirements, such as confidentiality clauses and noncompete agreements must be upheld after employment.
  4. Review insurance options such as COBRA.
  5. Let the employee know how to access their 401(k) and other benefit plans.

3. Update the payroll system and cut the final paycheck.

Compute PTO and vacation balances due the employee.  Calculate severance pay. Cut the final paycheck, incorporating those items.

Review the paycheck amounts with the employee, and ask them for a forwarding address.

4. Collect company property.

The employee should turn over their computer equipment, including laptops, monitors, mice, keyboards, PCs, Macs, phones, beepers, printers, drives, and scanners. Don’t forget to ask for keys, business cards, name badges, security badges, gate and garage door openers, uniforms, and tools. Oh, and company cars or trucks.

5. Revoke computer access. 

Any user accounts held in the employee’s name should be revoked. Many passwords may need to be changed.  Their email address should either be forwarded to someone else who can answer the emails, updated with an autoresponder, or revoked altogether.

Voice mail and their phone extension should also be re-routed.  Take the employee’s name off of any internal distribution list and remove them from the About page of your website.

6. Hold an exit interview.

The business owner should hold an exit interview with the employee if they are leaving voluntarily.  Ask questions such as these:

  1. Why did you decide to start searching for a new job?
  2. Was there anything we could have done to keep you employed here?
  3. If you could change one thing about your job, what would it be?
  4. Could you describe your relationship with your direct supervisor?
  5. Would you consider working here again?

7. Communicate this change to your staff and customers. 

Let your staff know immediately after the employee leaves that they will not be coming back. Don’t go into detail about the termination; that information is private.

If the employee was involuntarily terminated, assure your staff that their jobs are safe (if they are) so they don’t ruminate or spread false rumors.

If the employee worked with customers, each customer should be notified and given the name of the new staff member that will be handling their issues.

Follow these steps to protect your company when an employee is terminated.

Six Fun Ideas to Bring into Your Marketing Cool Tech Tools: Easy Ways to Create Video Graphics

Related Posts

Blog, Business Growth, Business Tips

Should Your Business Become Cash-Free?

Blog, Business Tips, News

The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

Blog, Business Tips, Expense Reduction Tips

Deductibility of PPP-Related Expenses

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • May 2017

Categories

  • Accounting (23)
  • Accounting Software (2)
  • Blog (4)
  • Bookkeeping (1)
  • Bookkeeping Tips (5)
  • Business Development (13)
  • Business Growth (8)
  • Business Tips (63)
  • Cool Tech Tools (13)
  • Cost-Saving Tips (1)
  • Customer Service Tips (6)
  • Decision-Making Tips (2)
  • Expense Reduction Tips (4)
  • Finance Management (1)
  • Management Tips (9)
  • Marketing Tips (1)
  • Money Management (1)
  • News (4)
  • Payroll Tips (3)
  • Personal Development (5)
  • Profitability Tips (9)
  • Tax (4)
  • Technology (1)
  • Time Management Tips (4)
  • Uncategorized (15)
  • Home
  • Services
  • Products
  • Industries
  • Resources
  • Blog
  • About
  • Contact

Contact Us

Tax Services, Accounting Services and Services for QuickBooks®

EVOL Business Solutions LLC.

Serving the metro Atlanta, GA area

(770) 777-4115

info@evolbussolutions.com

5174 McGinnis Ferry Rd #183
Alpharetta, GA 30005


Intuit, QuickBooks, and QuickBooks ProAdvisor are registered trademarks of Intuit Inc. Used with permission under the QuickBooks ProAdvisor Agreement.
Copyright EVOL Business Solutions LLC. 2020 | Site Design by Accelerator Websites