Employee exit process checklist: A complete guide for HR (with template)

Things change. That’s true for your business and your workforce. And when an employee leaves, it may be a natural part of the employee life cycle, but it’s rarely a simple process. 

Whether they’re retiring or leaving due to organizational changes, how you manage their exit has a lasting impact. An unorganized employee exit process can lead to missed documentation, security risks, and an incomplete transfer of responsibilities. 

With a bit of planning, you can streamline the offboarding process and avoid common pitfalls that can result in embarrassing mistakes or even legal issues. A well-structured exit checklist helps ensure that all the important details are covered, from revoking system access to retaining institutional knowledge. The result? A smooth exit process for both your employee and your organization. 

In this article, you’ll learn what it takes to create an effective employee exit checklist, so you’re prepared for every part of the offboarding process, from start to finish. And if you need a head start, we’ve included a free, downloadable employee exit checklist that you can use as-is or customize to fit your needs.

What is the employee exit process?

The employee exit process is a structured series of steps companies follow when an employee leaves the organization. The departure can be either voluntary (such as resignation or retirement) or involuntary (such as termination or layoff). This process is an important part of offboarding, helping to make sure the transition is straightforward and professional for both the company and the departing employee.

The main goal of the employee exit process is to protect the interests of both parties. It helps safeguard company assets, protect sensitive information, maintain security, and ensure compliance with legal and HR policies. For the employee, the process makes sure they receive all compensation owed, important benefits information, and experience a positive exit from the company.

An indispensable tool in the process is the employee exit checklist. It outlines the steps required, from collecting company equipment to conducting exit interviews, ensuring that nothing is overlooked and the departure proceeds smoothly.

Steps in the employee exit process

Regardless of the reason, it is essential to have an employee exit process that is both efficient and stress-free for both the employee and your organization. Using an employee exit checklist (or, in the case of a dismissal, an employee termination checklist) makes things so much easier. A well-structured checklist minimizes disruptions, protects company assets (both physical and digital), and maintains goodwill. Here are eight essential steps to help you successfully manage employee exits. Note that special circumstances may require additional steps tailored to the specific situation.

Step 1. Notify relevant departments

After receiving and fully documenting the employee’s resignation (or termination), inform all key departments about the upcoming exit. This includes HR, IT, payroll, and the employee’s supervisor or manager. Early notification allows each department to prep for its individual responsibilities, such as processing the required paperwork (including severance agreements, termination letters, and non-disclosure agreements), updating company records, and planning for knowledge transfer and the transition of duties. 

Step 2. Schedule the final day and exit interview

Now that the employee’s exit is set in motion, it’s time to determine and agree upon their last day of work. This may differ from standard notice periods if the employee plans to use vacation days or other earned time off during their final weeks. At the same time, be sure to schedule an exit interview. Once you know the employee’s final day, you can give them time to prepare for their departure, including coordinating project handovers, wrapping up any outstanding tasks, and getting ready for the exit interview. 

Step 3. Retrieve company property

Collecting all company assets from the exiting employee significantly reduces the risk of property going missing or data security breaches. Be sure to retrieve all company property, including laptops, mobile devices, access cards, keys, and any other work-issued items. An inventory checklist can help you make sure nothing is missed. 

Step 4. Revoke access to systems and tools

Coordinate with your IT team to disable the employee’s access to internal systems, email, databases, and software. Take immediate action when terminating an employee. For other situations where the employee is staying on until their last day, disable access a few hours after the end of their final shift. That will give them time to complete any necessary paperwork or notes for the handover. Ensuring access is turned off at the proper time maintains data security and prevents unauthorized access after the employee leaves the company. 

Step 5. Provide final pay and benefits info

Process the employee’s final paycheck. Include any outstanding wages, unused vacation time, and other monies owed, and be sure to reconcile any outstanding payroll advances. Provide clear information about benefits, including health insurance continuation and retirement plans, and outline what they’re entitled to under COBRA. 

Step 6. Conduct an exit interview

Hold an exit interview to gather feedback about the employee’s experience, reasons for leaving, and suggestions for improvement. Don’t leave it too late in the exit process, as you don’t want it to be rushed. The information gained in the exit interview is valuable for identifying issues in the organization, improving workplace culture, and ensuring a smooth offboarding process.

Step 7. Document the departure

Thoroughly documenting the exit helps protect both the employer and the employee from misunderstandings and potential legal issues. Update employee records with the departure details, including the resignation letter or termination paperwork. Make sure all compliance and legal documentation is complete for future reference. 

Step 8. Communicate the departure internally

Getting ahead of office gossip is essential. Be sure to announce the employee’s departure to relevant teams and stakeholders as soon as possible. Clear communication helps manage transitions, prevents rumors, and allows your workforce to prepare for upcoming changes in responsibilities and workplace dynamics.

Why is having an employee exit checklist important?

A standardized employee exit checklist is essential for companies of any size to make sure the employee exit process is straightforward, secure, and positive. Here are seven key reasons why you should have one:

• Prevents compliance and legal issues: An employee exit checklist helps you cover all regulatory and company policy requirements, like final pay, benefits, and confidentiality agreements. It also reduces the risk of lawsuits, fines, or compliance issues, particularly in industries with stringent compliance standards.
• Protects company data and assets: Recovering company devices, revoking system access, and updating permissions helps prevent unauthorized access and sensitive data exposure. If you leave an ex-employee’s account active, it can result in expensive data breaches, which regularly appear in the media due to high-profile incidents.
• Preserves company reputation: A professional and respectful exit process leaves a good impression on departing employees, who might share their experience with others. It helps protect your company’s brand and cuts down the risk of negative publicity and bad reviews.
• Enables knowledge transfer: A clear and concise employee exit checklist makes it easier to transfer critical institutional knowledge, contacts, and ongoing projects to the right people, minimizing disruption and ensuring continuity. For example, setting up handover meetings and documenting key procedures helps prevent knowledge gaps and ensures a smooth workflow.
• Provides insights to improve retention and offboarding: Exit interviews and feedback collected during the offboarding process can highlight patterns and problems that may be driving increased turnover. Insights gleaned from exit interviews can help you fine-tune workflows, improve company culture, and refine management practices, all of which will help your organization retain its top employees.
• Supports relationships with returning (boomerang) employees: A supportive and positive exit experience makes it easier for former workers to return in the future. Boomerang employees usually get up to speed faster, bring fresh perspectives, and can increase workforce morale and productivity. Staying connected with former employees strengthens your talent pipeline, giving you a valuable resource for future hires.
• Minimizes operational disruptions: Ensuring all tasks are completed, such as updating records, notifying the relevant departments, and announcing the departure, helps your organization avoid workflow disruptions and confusion. This is especially important for client-facing roles, where skipped steps can impact service or sales.

What should be included in an employee exit checklist?

When an employee leaves your company, a thorough exit checklist helps make the process smooth, secure, and legally compliant. These are four areas every employee exit checklist should cover:

Company assets to collect

Collecting company property prevents loss and protects sensitive information. Before the employee’s last day, ensure all assets are returned, including:

• Keys, access cards, and ID badges
• Laptops, desktops, and accessories
• Mobile phones and chargers
• Company documents and files (physical and electronic)
• Uniforms, tools, and parking passes

Have the employee sign a document that verifies all company property is accounted for and returned in good condition.

IT access and permissions to revoke

Revoking IT access is critical for security and compliance. In the event of termination, it should be carried out immediately. Otherwise, cut off access at the end of the employee’s last day. These are some essential measures to take: 

• Deactivating email and network accounts
• Removing access to cloud-based software, databases, and internal systems
• Resetting or changing shared passwords
• Turning off remote access and VPNs
• Updating company directories and group lists
• Notifying resource owners

Automating this process can help prevent orphaned accounts and reduce security risks.

Offboarding paperwork to complete

Ensure that all required documents are prepared, dated, and signed. This protects both the company and the departing employee from potential issues. Common exit paperwork includes:

• Resignation or termination letter
• Final paycheck and PTO payout documentation
• Benefits and COBRA information
• Noncompete, nondisclosure, or confidentiality agreements
• Tax and retirement plan forms

Be sure to keep accurate records for compliance and future reference.

Exit interview and feedback collection

Exit interviews offer valuable insights for improving retention and workplace culture. Best practices include:

• Scheduling the exit interview prior to the employee’s final day
• Using a standard set of questions to uncover trends and patterns
• Creating a confidential environment to encourage honest feedback
• Documenting responses and sharing valuable insights with leadership (while maintaining confidentiality)
• Asking about compensation, management, growth opportunities, and reasons for leaving

Combining your exit interview data with other feedback methods gives you a full picture of the employee experience and helps create a secure, compliant, and informative exit process.

How to create an offboarding checklist template: 6 tips

A well-structured employee exit checklist template makes the offboarding process smoother, reduces legal and security risks, and safeguards your company’s reputation. A detailed checklist ensures every critical step is covered, whether the departure is voluntary or not. Here are six best practices to follow when creating your employee exit checklist template:

1. Customize for different exit scenarios

Not all exits are the same. Your checklist should address the requirements of different scenarios, including resignations, retirements, layoffs, and terminations. For example, a retirement typically involves knowledge transfer. A termination, on the other hand, may require stricter security steps and documentation. 

If your organization frequently encounters multiple types of exits, you may want to consider creating templates for each scenario. This ensures that each type of exit is handled consistently and appropriately, reducing the chance of missing an important step. Another option is a single template that includes common tasks for any scenario and space to add additional actions for special circumstances.

2. Include stakeholders across departments

Offboarding is more than just HR's responsibility. Doing it effectively involves collaborating across multiple departments, including finance, legal, and IT. This ensures that all necessary offboarding tasks, from updating payroll to collecting company equipment, are completed.

3. Ensure legal and compliance coverage

If you miss any critical offboarding steps, your company may face legal and compliance risks. Your employee exit checklist should include all the paperwork required when an employee leaves, including COBRA information, final pay, and non-disclosure agreements (NDAs). In addition, you’ll need to comply with relevant federal, state, and local labor laws. 

4. Incorporate knowledge transfer

When an employee leaves, it often means losing valuable institutional knowledge and expertise. Your employee exit checklist should include knowledge transfer from departing workers. At a minimum, ensure they document their responsibilities, contacts, workflows, and any outstanding projects they’re working on. To support this, schedule handover sessions or ask them to provide written documentation to help successors and teammates get up to speed quickly and maintain smooth operations.

5. Don’t skip the exit interview

Exit interviews are a goldmine for candid feedback and organizational insight. Ensure that they’re a mandatory item on your checklist. Prepare questions in advance and offer a safe, neutral environment for open discussion. Use the feedback to identify trends, address issues, and improve retention for current employees. Don’t just file this feedback away. Review it and act on any issues that may be affecting your workforce. 

6. Regularly review and update your checklist

As business needs, technology, and regulations evolve, your employee exit checklist should too. Review and update your template regularly. You can do this after so many departures or simply schedule a quarterly review. To keep you compliant, ensure your checklist reflects any changes in labor and employment regulations. Ask for feedback from your management team and former employees to highlight any gaps and improve your offboarding process. 

Employee exit checklist template

Download our free employee exit checklist template to streamline your process, customize it for your company's unique needs, and ensure a smooth and organized employee departure process.

Automate the employee exit process with Rippling

It’s clear by now that every HR or people manager needs a solid employee exit checklist. But even with a checklist, offboarding can still eat up time, especially when you're handling more than one exit at a time. Rippling is here to help.

Rippling is an intuitive, all-in-one HCM software platform that takes the frustration out of offboarding, with features like:

• One-click access revocation across integrated apps and devices
• Automated final pay and benefits calculations
• Quick and efficient device recovery for remote employees
• Compliance ensured with federal and state labor laws
• Customizable employee survey tools

With Rippling’s HRIS software, you can offboard employees with confidence, knowing that no detail will go unnoticed. By optimizing the process, you free up time and mental bandwidth to focus on what really matters—supporting your team and moving the business forward.

Employee exit checklist FAQs

What paperwork is needed when an employee quits?

When an employee decides to move on, there are several important pieces of paperwork you’ll need to complete. This will help you ensure a legally compliant and smooth offboarding process.

• Written resignation letter (email or hard copy) 
• Resignation acceptance
• Final pay documentation
• Benefits and retirement paperwork
• Non-disclosure or non-compete agreements
• Tax and government forms
• Asset return forms

What do you say to an exiting employee?

When an employee is leaving, it's important to keep your message professional, warm, and appreciative. Acknowledge their efforts, express gratitude for their contributions, and extend your best wishes for their future endeavours. If appropriate, let them know you're available for support or to stay in touch. Personalize your communications based on your relationship and the situation, and aim to leave things on a positive note.

How do you prepare for an employee exit?

When an employee leaves your organization, you need to keep several factors in mind, which is why having a checklist is essential. The main tasks include:

• Review their employment agreement and company policies
• Schedule an exit interview
• Communicate the departure to relevant teams
• Revoke access to systems and accounts on their last day
• Collect company property
• Update internal records
• Process their final paycheck and benefits paperwork promptly

What’s the difference between an employee exit and offboarding?

An employee exit refers to the final stage of the employment relationship, whether it ends through resignation, employee termination, or retirement. Offboarding is a similar, though slightly more encompassing, process that employers use to manage an exit smoothly. Like the employee exit process, offboarding includes steps like collecting company property, deactivating access in IT and HR systems, and updating personnel files.

A well-organized employee exit or offboarding checklist helps ensure nothing is missed, from wrapping up projects to coordinating with payroll for any final compensation, including accrued vacation or sick time. It also helps employers handle tasks like notifying co-workers, conducting exit interviews, and closing out benefits. Whether an employee resigns or is terminated, using an exit or offboarding checklist supports compliance, protects your company’s assets, and ensures accurate payroll processing.

This blog is based on information available to Rippling as of May 2, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.