Employee Offboarding Checklist + Free Word & PDF Templates

Employee offboarding often takes a backseat to onboarding, yet it is equally strategic and deserves careful attention. It’s essential to clearly understand what offboarding involves—and what it doesn’t. Far from being a confrontational or negligent process, a strong offboarding policy underpins the entire process, defining responsibilities and best practices. Teamflect’s offboarding guide provides a deeper understanding of this process.

This article provides a comprehensive guide to the employee exit process steps that every organization should follow including a practical checklist, best practices, and common pitfalls to avoid. Scroll down to download your free offboarding templates.

👇 Scroll Down to Download Free Employee Offboarding Templates: A Customizable Word Template and Printable PDF!👇

What is an Employee Offboarding Checklist?

An employee offboarding checklist is a structured tool that outlines the steps to be taken when an employee leaves an organization, whether voluntarily (resignation, retirement) or involuntarily (termination). It ensures that the departure is handled efficiently, complies with legal and organizational requirements, and maintains a positive relationship with the departing employee. This template can be customized to fit your organization’s needs and is designed to be used by HR, IT, and other relevant departments.

Using an offboarding checklist offers several benefits:

• Security: Prevents unauthorized access to company systems and data by ensuring timely revocation of access.
• Compliance: Meets legal and regulatory requirements, such as proper handling of final pay and benefits documentation.
• Knowledge Retention: Captures critical institutional knowledge to maintain operational continuity.
• Employer Brand: Fosters goodwill with departing employees, who may become brand ambassadors or return as “boomerang” employees.
• Efficiency: Streamlines the process, reducing the risk of overlooking critical tasks.

Employee Offboarding Checklist: Step-by-Step Process

Employee offboarding when done right, does not only fulfill legal requirements, it is also an opportunity to create a good lasting impact on departing employees which also has an effect on those who are staying. It consequently impacts the company culture of an organization.

This comprehensive step-by-step guide outlines the essential tasks to manage an employee’s departure, whether they’re leaving voluntarily or involuntarily. By following these steps, you can minimize risks, maintain compliance, and foster goodwill with former employees who may become brand ambassadors or even return as “boomerang” employees.  Understanding employee departures also plays a key role in managing retention effectively. Teamflect’s detailed guide on employee attrition rate provides additional insight on workforce stability and turnover reduction. 

Step 1. Notify Key Stakeholders

The offboarding process begins the moment an employee announces their departure. Notifying key stakeholders immediately ensures that everyone involved can start preparing for their respective tasks. This step is about alerting the departments that will handle critical aspects of the offboarding process, such as HR, IT, payroll, and the employee’s direct manager. Prompt notification sets the stage for a coordinated and efficient transition.

Why it’s important: Early communication prevents delays and ensures all departments are aligned, reducing the risk of oversights.

Who to notify: Regardless of who is in charge of the process here is a list of all stakeholders that need to be involved.

• HR: To initiate administrative tasks, prepare documentation, and manage benefits.
• IT: To plan for system access revocation and asset recovery.
• Payroll: To calculate final payments and address outstanding financial matters.
• Direct Manager: To organize the transition of responsibilities and knowledge transfer.

What to communicate: The employee’s last working day, reason for leaving (if appropriate), and any specific instructions for the transition.

How to do it: Use a standardized email or form to ensure consistency. Include details like the employee’s role, department, and last day.

Tip: Create a notification template to streamline this process and ensure no stakeholder is missed.

Example: “Please be informed that [Employee Name] will be leaving their role as [Position] on [Last Day]. HR, IT, and payroll, please prepare for offboarding tasks. [Manager Name], please coordinate the transition of responsibilities.”

Step 2. Communicate Departure to the Organization

Once key stakeholders are informed, it’s time to share the news with the broader organization. This step promotes transparency, reduces workplace gossip, and helps maintain team morale. A well-crafted announcement acknowledges the employee’s contributions and outlines how their departure will be managed, ensuring colleagues are informed and reassured.

Why it’s important: Transparent communication prevents speculation and maintains a positive work environment.

How to communicate:

• Use email, intranet posts, or team meetings, depending on your company’s size and culture.
• For larger organizations, a company-wide announcement may be appropriate.
• For client-facing roles, consider notifying external stakeholders or clients.

What to include:

• Recognition of the employee’s contributions (e.g., “We thank [Employee Name] for their [number] years of dedication”).
• Well-wishes for their future (e.g., “We wish them success in their next chapter”).
• Details about interim arrangements or successors (e.g., “[Successor Name] will take over [specific responsibilities]”).

Example message: “We want to thank [Employee Name] for their [number] years of hard work and dedication as [Position]. They have decided to pursue new opportunities, and we wish them all the best. During this transition, [Successor Name] will handle [specific responsibilities]. Please join us in wishing them well!”

Tip: Be timely but sensitive—check with the employee if they’re comfortable with a public announcement, especially in cases of involuntary departure.

Step 3. Prepare Offboarding Documents

Preparing all necessary documentation is a cornerstone of a compliant and organized offboarding process. This step ensures that legal, administrative, and financial obligations are met, protecting both the company and the departing employee. From resignation letters to benefits forms, having all paperwork in order is essential for a smooth exit.

Why it’s important: Proper documentation ensures compliance with labor laws and protects company interests while providing clarity for the employee.

Key documents to prepare:

• Resignation letter: Formalizes the employee’s intent to leave and confirms their last working day.
• Non-disclosure agreements (NDAs): Reinforces confidentiality obligations, especially if the employee is joining a competitor.
• Benefits termination forms: Manages the cessation of health insurance, retirement plans, or other benefits.
• Final payroll documents: Includes calculations for final pay, bonuses, unused vacation, or other outstanding payments.
• Termination letter (if applicable): Documents the reason for involuntary departure for legal records.

Who is responsible: HR typically leads, but legal or payroll teams may assist with specific documents.

4. Recover Company Assets

Recovering company assets is a critical step to safeguard your organization’s property and prevent potential security risks. This involves ensuring that all company-issued items, from laptops to access badges, are returned in good condition and accounted for before the employee’s departure.

Why it’s important: Prevents financial loss and security breaches from unreturned or misused assets.

What to recover:

• Electronic devices: Laptops, tablets, smartphones, and SIM cards.
• Access items: Security badges, keys, access cards, or parking passes.
• Other items: Uniforms, tools, company vehicles, or branded merchandise.

How to do it:

• Maintain an inventory of all assets issued to the employee from their onboarding.
• Have the employee sign a return acknowledgment form to confirm all items are returned.
• For remote employees, arrange prepaid shipping labels for secure return of assets.

5. Revoke System and Application Access

Revoking access to company systems and applications is one of the most critical steps to protect sensitive data and maintain cybersecurity. This ensures that former employees cannot access company resources after their departure, reducing the risk of data breaches or unauthorized activity.

Why it’s important: Prevents unauthorized access to sensitive information and mitigates security risks.

What to do:

• Disable access to email, internal networks, CRM, project management tools, and other systems.
• Change passwords for any shared accounts the employee had access to.
• Remove the employee from distribution lists, group permissions, and SaaS licenses.

When to do it: Ideally on the employee’s last day, but before they leave the premises.

Risks of skipping this step:

• Intermedia found that 89% of former employees retain access to corporate data post-departure.
• ToriiHQ notes that 76% of IT leaders view offboarding as a significant security threat.

Who is responsible: IT department, with coordination from HR.

Tip: Conduct a final audit of the employee’s system activity to ensure no sensitive data was copied or transferred.

6. Conduct an Exit Interview

An exit interview is a valuable opportunity to gather honest feedback from the departing employee about their experience. This step provides insights into company culture, management practices, and areas for improvement, helping you enhance the employee experience for current and future staff.

Why it’s important: Identifies strengths and weaknesses in your organization, aiding retention and engagement strategies.

Who conducts it: HR or a neutral third party (not the direct manager) to ensure confidentiality and encourage openness.

What to ask:

• What prompted your decision to leave?
• What did you enjoy most about working here?
• What could the company improve to enhance the employee experience?
• How would you describe your relationship with your manager and team?

How to do it:

• Schedule the interview 2-3 days in advance to allow preparation.
• Conduct it in a confidential setting, either in-person or virtually.
• Offer electronic feedback options (e.g., online surveys) for added convenience.

Tip: Document and analyze feedback to identify trends and actionable improvements.

7. Transfer Knowledge and Responsibilities

Transferring knowledge and responsibilities ensures that the departing employee’s expertise and tasks are seamlessly handed over to their team or successor. This step is crucial for maintaining operational continuity and preventing disruptions in workflows.

Why it’s important: Preserves institutional knowledge and ensures projects continue without interruption.

How to do it:

• Document key processes: Create guides, wikis, or video tutorials for critical tasks.
• Conduct handover meetings: Involve the employee, their successor, or team members.
• Provide training: Arrange sessions for complex roles or specialized skills.

Who is responsible: The departing employee, their manager, and HR.

Tip: For senior roles, consider formal apprenticeships or team-based training to capture deep institutional knowledge.

8. Issue Final Pay and Benefits Info

Processing the final paycheck and providing benefits information is essential for compliance and employee satisfaction. This step ensures that the departing employee is fairly compensated and informed about their post-employment benefits options.

Why it’s important: Ensures compliance with labor laws and maintains goodwill with the employee.

What to include:

• Final paycheck: Wages up to the last day, unused vacation pay, bonuses, or outstanding expenses.
• Benefits information: Details on COBRA for health insurance continuation, 401(k) account statements, or other savings plans.
• Tax documents: W-2 forms or equivalent for the year.

Quick Note: The documents listed here are U.S. Based examples. They may vary based on your company, structure, and location.

When to do it: On the last day or as required by state law (e.g., some states mandate immediate final payment).

Legal considerations: Verify compliance with state-specific laws on final pay timing and benefits continuation.

Who is responsible: Payroll and HR teams.

Tip: Double-check all calculations to avoid errors that could lead to disputes.

9. Update Org Charts and Directories

Updating organizational charts and directories ensures that your company’s structure and contact information remain accurate. This step prevents confusion among employees and maintains professionalism in external communications.

Why it’s important: Keeps internal operations smooth and external materials accurate.

What to update:

• Internal directories: Employee lists, contact databases, and email groups.
• Org charts: Reflect changes in reporting lines or team structures.
• External materials: Company websites, sales brochures, or client-facing documents.

When to do it: Immediately after the employee’s departure or when a successor is appointed.

Who is responsible: HR or administrative staff, with input from IT for digital updates.

10. Celebrate and Close Gracefully

Ending the offboarding process on a positive note leaves a lasting impression and fosters goodwill with the departing employee. A thoughtful farewell can turn former employees into advocates for your brand and keep the door open for future collaborations.

Why it’s important: Enhances your employer brand and encourages positive word-of-mouth.

How to do it:

• Farewell events: Organize a lunch, team gathering, or virtual send-off.
• Thank-you notes: Send personalized messages from management or colleagues.
• Gifts or tokens: Offer small gestures like a gift card or company-branded item.

Benefits of a positive closure:

• Former employees may refer new talent or return as boomerang employees.
• Businesswire reports that 40% of former employees consider returning to their previous employer.

Tip: Tailor the farewell to the employee’s tenure and contributions for a personal touch.

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Employee Offboarding Checklist Template PDF

Below you will find a PDF employee offboarding checklist template that is best for when you want a printed offboarding checklist in your hands. It is a fantastic, free resource that’s here to help you navigate the sometimes tricky waters of saying goodbye to an employee. Whether someone’s resigning to chase a new adventure, retiring after years of service, or leaving for other reasons, this template ensures you’ve got all the bases covered.

What You Can Expect to Find in This Template

• Organized Categories: Divided into key areas like Initial Steps, Security, Digital Assets, Finance, Work Transition, and HR & Admin, with specific tasks such as confirming resignation dates and revoking VPN access to cover the entire offboarding process.
• Clear Departmental Responsibilities: Tasks are assigned to the right teams—HR, IT, Security, Finance, Team Leaders, and Managers—ensuring everyone knows their role and reducing oversights (e.g., IT deactivates emails, Finance manages final pay).
• Built-In Tracking: Includes Due Date and Status columns to help you monitor deadlines and task completion, acting like a mini project manager to keep everything on track.

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Word Employee Offboarding Checklist Template

The free Word employee offboarding checklist template also offers a structured, step-by-step approach to how you can navigate employee departures. from initial notifications to post departure tasks, it has every single employee offboarding step you need to go through covered. Designed for both HR and management, it’s fully customizable for your organization’s unique needs and easy to tailor for managerial responsibilities.

What You Can Expect to Find in This Template

• Employee Information Section: An organized employee information section to record all essential details, supporting clarity and compliance throughout the offboarding process checklist.
• Initial Steps: A comprehensive checklist that covers notifying relevant departments (e.g., IT, Payroll, Security), confirming the employee’s last working day, communicating the offboarding process to the employee, and informing colleagues about the departure to maintain transparency, helping you follow employee offboarding best practices.
• Exit Interview Preparation: Clear guidance on scheduling an exit interview (in-person or virtual) and preparing thoughtful questions to gather valuable feedback on company culture, work environment, and reasons for leaving, helping you improve future employee experiences.
• Knowledge Transfer & Handoff: Essential tasks to ensure a smooth transition of responsibilities, including documenting key processes, tasks, and projects, and coordinating with the manager to maintain operational continuity.

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