Action to Terminate

There are a number of issues to be addressed when an employee leaves and a checklist can help avoid items being omitted or overlooked.

  1. Resignation letter/ Termination authority received

  2. Issue leaving form covering:

    1. Reason for leaving (see Termination interview below).

    2. Accrued HOLIDAY pay to be paid.

    3. LOAN or wages advance to be recovered.

    4. EXPENSES float to be recovered (although some of this may be retained to cover current month expenses).

    (Under the Employment Protection Act 1996, only items for which the employer has an authority to deduct from wages can be so deducted.)

  3. Prepare:

    1. P45; and

    2. SSP (1) L re Statutory Sick Pay, if the employee has been paid SSP during the last 56 days of employment.

  4. Recover:

    1. protective clothing;

    2. access and other keys;

    3. company car;

    4. phone and any other Organisation property;

    5. credit, fuel cards;

    6. samples, employers notepaper and other paperwork, confirmation of order forms etc.

  5. Check:

    1. forwarding address (particularly if the employee is retiring); and

    2. status of computer passwords, and locks, safes, etc. (if employee had access, these may need changing).

  6. Replace:

    1. employee's name if on police/security/fire call out, replacement; and

    2. employee serving on any external or internal trade, etc., committee or body.

  7. Advise outside bodies of change of:

    1. chargee's name, if employee's telephone or other expense items charged to Organisation; and

    2. contact address if employee was member of health insurance or other scheme.

  8. Remind employees subject to the terms of, or who have signed a CONFIDENTIALITY UNDERTAKING, of the need to abide by its terms.

  9. Buyers

    If the employee was involved in taking orders for the organisation products, or placing orders on its behalf, and if the termination is acrimonious, it may be wise to advise all external parties that such authority no longer rests with the former employee. Failure to do this may result in third parties seeking to enforce contracts subsequently entered into by them in good faith believing they were dealing with a person who still had authority to act on behalf of the Organisation.

Enforced Termination

Where the termination has been brought about, not by act of the employee (i.e. a voluntary resignation) but by action of the employer (DISMISSAL after warning, or summary dismissal due to gross misconduct) the need to check every step needs to be stressed. Those responsible for initiating action need to ask the following questions.

  1. Is it proven that the employee broke a rule?

  2. Did the employee know of the rule (and of any changes)?

  3. Did the employee realise the breaking (or repeated breaking) of the rule would lead to dismissal?

  4. Is the rule itself reasonable and is dismissal for breaking it reasonable in the circumstances?

  5. What explanation has been offered by the employee - and is this in any way acceptable?

  6. Are there any extenuating circumstances?

  7. Is dismissal the only and appropriate option?

  8. Have we been consistent in our attitude to the breaking of this rule?

  9. Are there any other factors we should take into account?