Termination SOP
A termination SOP is a documented procedure that outlines the step-by-step process for handling employee separations, ensuring legal compliance and consistent offboarding.
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What is a Termination SOP?
A termination SOP (standard operating procedure) is a formal document spelling out exactly what your organization needs to do when someone leaves. It doesn't matter whether the person resigned or was let go. Termination standard operating procedures exist to make sure every departure gets handled the same way, professionally, and without running afoul of employment laws. This falls under the umbrella of HR standard operating procedures that govern people operations.
Employee termination procedures generally cover the whole journey from that first conversation through the final paperwork. Think access revocation, collecting laptops and badges, exit interviews, cutting the last paycheck. When you don't have a documented offboarding SOP, things start slipping through the cracks. Maybe IT doesn't hear about a departure for three days and that person still has system access. Maybe one manager handles departures gracefully while another botches them. The legal exposure adds up fast. Policies referenced in your employee handbook should align with these procedures.
Key Characteristics of Termination SOPs
- Legal compliance focus: These documents address federal and state employment laws, lay out documentation requirements, and spell out proper notice periods. The goal is reducing litigation risk.
- Clear role assignments: Who does what? A good termination SOP specifies responsibilities for HR, IT, management, and finance at each stage.
- Documentation requirements: What records need to be created, collected, and kept for each type of separation? This should be crystal clear.
- Security protocols: Immediate steps for revoking system access, collecting company property, and protecting sensitive information. No ambiguity here.
- Timeline specifications: Deadlines matter. From notification to final paycheck delivery, everything should have a due date.
Termination SOP Examples
Example 1: Voluntary Resignation
Picture this: an employee submits their resignation letter. The termination SOP kicks into gear immediately. HR acknowledges receipt within 24 hours, books an exit interview, fires up the offboarding checklist, loops in IT to revoke access on the last day, and makes sure final pay goes out within whatever timeframe your state requires.
Example 2: Involuntary Termination for Cause
Performance-based terminations need more care. The SOP should require documented performance history, an HR consultation before anyone makes a final call, a two-person meeting for the actual termination conversation, and IT access revocation right after that meeting wraps up. Some companies also require a secure escort from the building, depending on the circumstances.
Termination SOP vs Onboarding SOP
| Aspect | Termination SOP | Onboarding SOP |
|---|---|---|
| Purpose | Ensures compliant, secure employee departures | Integrates new hires into the organization |
| Timing | Triggered by resignation or dismissal | Begins before first day of employment (see employee onboarding) |
| Focus areas | Access removal, asset recovery, final pay | Training, access provisioning, orientation |
| Legal risk | Higher liability for improper handling | Lower immediate legal exposure |
How Glitter AI Helps with Termination SOPs
Glitter AI changes how organizations build and maintain their termination standard operating procedures. Rather than relying on static documents that go stale, Glitter lets teams capture the actual termination process through screen recordings and then automatically generates step-by-step visual guides. HR teams and managers can actually follow along.
When procedures need updating because of new regulations or policy changes, you just record the new process and regenerate the documentation. Your employee termination procedures stay current without the usual scramble of manual updates.
Frequently Asked Questions
What is a termination SOP?
A termination SOP is a standard operating procedure that documents the step-by-step process for handling employee separations, covering everything from resignation acceptance to final pay processing and access revocation.
What should employee termination procedures include?
Employee termination procedures should include resignation/dismissal protocols, exit interview scheduling, IT access revocation steps, asset collection checklists, final pay processing, documentation requirements, and compliance checkpoints.
Why are termination standard operating procedures important?
Termination standard operating procedures reduce legal risk, ensure consistent treatment of departing employees, protect company assets and data, maintain compliance with employment laws, and create clear accountability for each step.
What is the difference between voluntary and involuntary termination in an SOP?
Voluntary termination SOPs cover employee-initiated resignations with notice periods and exit interviews, while involuntary termination SOPs address employer-initiated separations with additional documentation, legal review, and immediate access revocation requirements.
How do you create an offboarding SOP?
Create an offboarding SOP by mapping each step from separation notice to final day, assigning responsibilities to HR, IT, and management, defining timelines, documenting compliance requirements, and building checklists for asset collection and access removal.
Who is responsible for following termination SOPs?
Termination SOPs typically involve HR for process oversight, managers for direct communication, IT for access revocation, finance for final pay, and legal for compliance review on complex cases.
How often should termination procedures be updated?
Termination procedures should be reviewed annually and updated whenever employment laws change, company policies shift, or after any termination-related legal issues reveal gaps in the current process.
What documentation is required during employee termination?
Required documentation typically includes the resignation letter or termination notice, performance records for cause-based dismissals, signed acknowledgment forms, exit interview notes, asset return receipts, and final pay records.
How do termination SOPs protect companies legally?
Termination SOPs protect companies by ensuring consistent treatment across all separations, documenting compliance with employment laws, creating evidence of proper procedure following, and reducing claims of unfair or discriminatory treatment.
What happens if a company does not have termination procedures?
Without termination procedures, companies risk inconsistent employee treatment, delayed access revocation creating security vulnerabilities, missed compliance requirements, improper final pay handling, and increased exposure to wrongful termination claims.
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