23 September 2026
There always comes a time when an employee inevitably leaves the business. Whatever the circumstances are for their leaving, there is a list for offboarding a team member that we still recommend. It goes beyond their last day and first pay. Their work still needs to be handed over, and any company property they have also needs to be returned.
Aside from the above, there are more considerations that a busy business owner might not always have on top of their mind. A clear offboarding process helps you cover the practical steps that comes with an employee exit while also treating them with care. Read on for our checklist.
First of all, it’s important that the exiting employee understands their final employment date, notice arrangements (if any), and what needs to happen before they leave. This goes for all relevant people in your business as well, like direct managers. If the business is ending the employment, don’t forget to follow the processes and requirements that the decision entails (Fair Work Ombudsman).
Assign someone to coordinate the offboarding tasks. That person can keep track of the handover, payroll, equipment, system access and communications, so nothing depends on one manager remembering every detail.
It might feel overwhelming, especially if the exit is a sudden one. However, we recommend starting with the work that will need attention after the employee leaves. Ask them to document their current projects and deadlines.
If there is no replacement yet for the exiting employee, it’s important to decide which person in your business will handle this person’s responsibility and workload in the meantime.
A proper handover period is also a chance to get any information that the departing team member might not have written down or documented anywhere. Are there clients that prefer phone calls to emails, or vice versa? Do they have tasks they do at the end of the month that they do to make the next month flow easier? Small details like these can make the transition smoother.
Agree on when and how the departure will be communicated. Once this is agreed on, let the team know about the decision, and then let clients and relevant stakeholders know who to speak with going forward.
Remember to keep the message respectful and professional. While the team may need information on practical details like responsibilities, they do not need private details about why someone is leaving.
An exit interview is often overlooked or even forgotten in the offboarding process. However, it’s a step that can help you understand the team member’s experience while working for the business and spot issues that may need to be addressed.
During the exit interview, remember to listen without becoming defensive and to look for any patterns across the feedback received. Not everything brought up during the exit interview may need to be actioned on, but it’s good to keep an open mind and a listening ear.
Make participation voluntary, and consider who is best placed to lead the conversation. If the employee raises a complaint or a serious concern, take it through the appropriate process rather than treating it as ordinary exit feedback.
Make a list of what the employee has: a laptop, phone, keys, access card, company credit card, uniform or other equipment. For remote employees, agree on a practical way to return items.
Coordinate with whoever manages your systems so access to email, shared files, HR platforms and other accounts is removed at the right time. Update shared passwords or permissions where needed, and arrange an appropriate contact point for any email or messages sent to the employee’s work account.
Ensure you can access company devices in case the team member still has a password on them. Don’t assume your IT guy can do a password reset as this can cause headaches further down the line.
We’re almost to the end of our offboarding checklist!
Make sure to review outstanding wages and entitlements, including any unused annual leave or applicable leave loading. It depends on the circumstances, but final pay may also include payment in lieu of notice, redundancy pay, long service leave, rostered days off or time off in lieu.
Remember to check the employee’s award, enterprise agreement and any other applicable rules before settling the payment date or calculating entitlements. Some awards require final pay within seven days of the last day of employment, but requirements vary among awards.
And as we always say in HR, documentation and having good record-keeping practices is key. Record how the employment ended and complete the relevant payroll reporting. Employment records must also be kept for seven years. Read more about record-keeping and pay slips following an employee exit here.
Not sure what Long Service Leave is and who is entitled to it? Learn more about it here.
Finally, don’t forget to remove or update the employee’s details on your website, social media platforms, and any client-facing material.
And don’t forget: where appropriate, thank the person for their contribution. A thoughtful goodbye does not replace the practical steps, but it can help the employment relationship end respectfully.
Need help building an offboarding process that works for your business? Or maybe you need an expert HR Partner’s assistance in managing an exit. Now Actually can help you put the right steps, documents and responsibilities in place. Book a Discovery Call here.
