US Exit & Offboarding Procedure Template

Purpose and Scope

This procedure details the sequence for handling employee departures, resignations, terminations, layoffs, or end-of-contract events, from initial notice through file closure. It applies to all departing employees, line managers, and designated [HR Role], [Payroll Role], and [IT Role] staff.

Open an offboarding checklist in [System] on day one for every departure. Each task owner must sign off on their assigned actions. For involuntary departures, start this procedure at the final pay and benefits processing stage.

Employment at [Organisation Name] is at-will. Nothing in this procedure creates a contractual right to a notice period or specific exit process.

Working through related paperwork at the same time? See also our Exit & Leaver Procedure Template, Right to Work Check Procedure Template and Written Statement of Employment Particulars Template.

Roles and Responsibilities

• Manager: Acknowledges resignations in writing, coordinates knowledge transfer, oversees the final handover, and completes assigned checklist items.
• [HR Role]: Owns the main checklist, confirms local final pay rules, conducts or schedules the exit interview, issues separation paperwork, and closes the personnel file.
• [Payroll Role]: Calculates final wages and accrued PTO, issues final payments within legal deadlines, and triggers benefits continuation notices.
• [IT Role]: Inventories assigned hardware and credentials, monitors system access during the notice period, and revokes access on the final day.

Resignation Receipt

1. Acknowledge the resignation in writing the day you receive it. Confirm the notice period and final work date.
2. Open the offboarding checklist in [System] and alert [HR Role], [Payroll Role], and [IT Role] that same day.
3. Consult with [HR Role] to decide if the employee works out the notice period or leaves earlier.
4. Hold any retention discussions within [Number] days. If the departure stands, proceed with standard offboarding.

Notice Period Management

1. Work with the employee to build a handover document detailing open tasks, project statuses, key contacts, and system access points. Transfer all credentials into [Password Manager]. Do not write credentials down.
2. Assign a specific owner for every ongoing task before the employee’s last day.
3. Announce the departure following the [Communication Plan]. Consult the employee first on timing and phrasing.
4. Have [IT Role] review system permissions, restrict administrative or elevated access where needed, and cross-reference equipment against the asset register.
5. Schedule the exit interview, finalize last-day logistics, and record a forwarding address for tax forms and final wage statements.

Final Pay and Benefits Processing

1. Check local labor laws for final paycheck deadlines before setting the last day of employment.
2. Calculate final pay, including work hours through the last day, earned commissions or bonuses, overtime, and accrued unused PTO where required by law or policy.
3. Process expense reimbursements on the same timeline as final wages.
4. Alert the group health plan administrator immediately so they send continuation coverage notices on time.
5. Issue separation notices, state unemployment information, and retirement plan distribution forms.
6. Confirm that any paycheck deductions for missing equipment comply with wage laws and existing written agreements.

Asset and Access Recovery

1. Collect all company property, laptops, phones, badges, keys, tools, and uniforms, and verify items against the equipment inventory.
2. Shut down system accounts in order at [Time] on the last day. Revoke single sign-on access first, then email, network access, cloud tools, code repositories, and financial software.
3. Change any shared passwords the employee knew. Transfer file ownership, distribution lists, system integrations, and on-call schedules to cover positions.
4. Set up email forwarding or auto-replies per company policy. Remove the employee from directories, org charts, and emergency call sheets.
5. Perform a final exit walkthrough: confirm the employee retrieved personal items, explain final pay and benefits continuation, and provide a post-employment contact.

Exit Interview Procedure

1. Invite the employee to a voluntary exit interview with [HR Role] or a neutral third party during their final week.
2. Ask the standard exit questions covering reason for leaving, management feedback, workload, pay, working conditions, and company improvements.
3. Log responses in [System]. Summarize quarterly trends for executive review, and immediately escalate any claims of harassment, discrimination, or safety issues to [HR Role].

Records and Review

Store all completed checklists, resignation letters, written acknowledgments, handover notes, asset logs, pay calculations, benefit notices, and exit interview records in [Storage Location]. Keep these files for [Retention Period].

Review this procedure [Frequency, e.g., annually], after any offboarding breakdown, or when labor laws change.

• Document Owner: [Role]
• Next Review Date: [Date]