Purpose and Scope
This procedure details how [Organisation Name] handles employee departures from initial notification through to file closure. It applies to all employees and workers at every level.
Specific policies govern the initial decision to depart (such as resignation, redundancy, or dismissal). Once a departure is confirmed, follow this procedure to manage the execution and administration.
Working through related paperwork at the same time? See also our Redundancy Policy & Procedure, Reference Request & Provision and Performance Review & One-to-One.
Legal and Regulatory Context
- Final Pay and Holiday Entitlement: Calculate final pay in line with the Working Time Regulations 1998 for accrued, untaken statutory holiday. Deductions from final pay must comply with the Employment Rights Act 1996, requiring statutory authority, explicit contractual authorization, or prior written consent.
- Data Protection: Manage and retain leaver records containing personal data strictly under UK GDPR and the Data Protection Act 2018.
Application
This procedure applies to:
- Resignations, including those during a probationary period.
- Retirements and the end of fixed-term contracts.
- Redundancies, once the formal redundancy process concludes.
- Dismissals, once formal disciplinary or capability processes conclude.
Note: For dismissals without notice, skip the notice-period section and execute the last-day and final-pay steps immediately.
Roles and Responsibilities
- Line Manager: Acknowledges resignations in writing, plans and oversees handovers, and completes last-day tasks.
- [HR/Office Manager]: Maintains the leaver checklist, coordinates payroll, IT, and administrative paperwork, and conducts exit interviews.
- [IT/Systems Owner]: Schedules and executes system access revocations on agreed dates and times.
- Payroll ([Role/Provider]): Calculates final pay (including accrued holiday adjustments) and issues statutory tax documents.
Resignation Handling Procedure
- Acknowledge the resignation in writing within [Number] working days. Confirm the final employment date based on contractual notice requirements.
- Request written confirmation if the employee resigned verbally.
- Notify [HR/Office Manager], payroll, and [IT/Systems Owner] of the departure date within the same week.
- Open the leaver checklist in [System Name]. Assign task owners and completion dates for every item.
- Agree a communication plan to announce the departure to staff and clients. Inform the departing individual before making any public announcement.
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Notice Period Procedure
- Agree a written handover plan during the first week of notice. Set out required documentation, assignees, and target completion dates.
- Instruct the leaver to write or update handover notes detailing active tasks, key contacts, file locations, and system credentials. Transfer credentials via [Password Management System], never share them directly.
- Reassign active work and introduce successors to key contacts before the final week of notice.
- Schedule an exit interview with [Neutral Role/HR Representative] during the final week. Attendance is optional.
- Outline continuing post-employment obligations, such as confidentiality and restrictive covenants, in the formal leaver confirmation letter.
- Settle annual leave arrangements. The leaver may take remaining annual leave during notice if mutually agreed, or receive pay for accrued statutory leave in their final pay run.
Last Day Procedure
- Collect all [Organisation Name] assets listed on the leaver checklist, including [keys, pass, laptop, phone, uniform, vehicle, card equipment].
- Revoke all IT and system access at [Time] on the final day. Cut access to email, [Systems List], remote networks, and shared accounts known to the individual. Rotate shared credentials immediately where required.
- Remove the leaver from operational rotas, on-call lists, physical access systems, and internal directories.
- Confirm forwarding contact details to send the final payslip and tax forms.
- Set up mailbox auto-responses and call forwarding per the IT acceptable use policy.
- Sign off and archive the completed leaver checklist.
Final Pay and Documentation
Disburse final pay on [Pay Date] with an itemized payslip. Include earnings through the final working day, accrued untaken statutory holiday, and any contractual payments due (such as commission, bonuses, or pay in lieu of notice).
Only make deductions (for excess holiday taken, unreturned property, or agreed training costs) if explicitly authorized by contract or a separate written agreement.
Issue the statutory P45 tax form following the final pay run. Confirm pension status with [Pension Provider], and send the leaver written confirmation of their end date and ongoing contractual obligations.
Non-Standard Departures and Contingencies
- Unauthorised Absence During Notice: If an employee stops attending work during notice, attempt contact, document all events, and consult [Role/Adviser] before withholding pay.
- Unreturned Property: Apply contractual deduction clauses where permitted. Escalate to [Escalation Role] if no clause exists.
- Resignation Retractions: [Organisation Name] does not have to accept the retraction of a clear resignation. [Senior Role] makes the final decision promptly in writing.
- Disputes and Grievances: Consult [Legal/HR Adviser] before issuing final documentation for departures that involve active grievances or legal disputes.
Records and Review
- Record Keeping: Store the leaver file securely in [System Name] for [Retention Period], per data retention policies. Include the completed checklist, handover notes, anonymized exit interview summaries, final pay records, and correspondence.
- Reporting: Report anonymized exit interview trends to [Leadership Body] every [Frequency] to drive operational improvements.
- Review Cycle: Review this procedure [Frequency, e.g., annually] or immediately after any departure that exposes procedural gaps.
Document Owner: [Role] Next Review Date: [Date]
FAQs on Exit & Leaver Procedure
What is an exit and leaver procedure?
An exit and leaver procedure details how your organisation handles employee departures from initial notification through to file closure. It applies to all employees and workers at every level.
Having it written down means the same rules apply to everyone, so managers are not making judgement calls case by case under pressure.
What does an exit and leaver procedure include?
This template covers legal and regulatory context, application, resignation handling procedure and notice period procedure.
Every section is written to be filled in. The bracketed placeholders mark the decisions that are yours to make, such as timescales, approval owners and retention periods.
How to implement an exit and leaver procedure with Whale
Copy this template into Whale and work through the bracketed placeholders so it reflects how your organisation actually operates.
Assign it to the teams it applies to so it sits where people work rather than in a shared drive, and set a review date so it gets revisited on schedule instead of quietly going out of date.
Use our templates to fast-track your documentation
Customize this template and 100s of others for free in Whale, the fastest way to get your team aligned.
