Employee Termination - Uncontrolled If Printed

Employee Termination

Scope

This procedure covers resignation and involuntary termination of an employee.

This procedure does not cover corrective actions taken in relation to sub-standard employee performance or conduct. Refer to Employee Performance Corrective Action.

Policy

Employment is at will and is not for a specified term; therefore, either the employee or the Company is able to terminate the employment relationship for any reason, with or without cause.

Job abandonment is

Responsibility

The Department Manager is responsible for

The Human Resources Representative is responsible for

The Human Resources Specialist is responsible for

The Human Resources Administration Manager is responsible for

The Accounting Clerk is responsible for processing the employee's final payroll check.

The Information Services Manager is responsible for completing required tasks on the exit interview checklist.

The Security Manager is responsible for completing required tasks on the exit interview checklist.

The Benefits Analyst is responsible for forwarding COBRA information to the terminated employee.

Distribution

Accounting Clerk*

Benefits Analyst*

Human Resources Administration Manager*

Human Resources Representative*

Human Resources Specialist*

Information Services Manager*

Manager*

Security Manager*

Ownership

The Human Resources Administration Manager <e-mail> is responsible for ensuring that this document is necessary and that it reflects actual practice.

Activity Preface

This activity is performed whenever

Prior Activity

Employee Performance Corrective Action

Manager

1.    Determine the nature of the termination.

An employee's employment can end for several different reasons:

If resignation or job abandonment, goto task #2.

If manager wants to terminate for cause, goto task #8.

If part of a reduction in force (RIF), goto task #12.

2.    Notify the Human Resources Representative of the employee's resignation or job abandonment.

Resignations must be in writing and clearly note the effective date and reason, if possible.

If resignation, goto task #3.  Otherwise, goto task #7.

Manager and Human Resources Representative

3.    Determine if it is in the company's interest to try to maintain the employee.

If maintaining the employee is desired, goto task #4.  Otherwise, goto task #7.

4.    Meet with employee.

If the company will try to maintain the employee, goto task #5.  Otherwise, goto task #7.

5.    Determine counter offer.

Manager

6.    Make counter offer to employee.

If employee rejects counter offer, goto task #7.  Otherwise, end of activity.

7.    Initiate an Employee Profile and forward to Human Resources Specialist.

Goto task #11.

Manager and Human Resources Representative

8.    Review documentation and employee performance records.

Documentation must support a recommendation to terminate. 

Documentation must be complete, fair, consistent and without bias.

Documentation should include:

If documentation supports a recommendation to terminate, goto task #9.  Otherwise, end of activity; goto Employee Performance Corrective Action.

9.    Initiate an Employee Profile.

Severance is paid to employees impacted by a reduction in force. It may also be paid in cases where an employee's termination is mutually determined to be in the best interest of both parties (for example, the position has been eliminated or restructured in such a way that the employee's skills no longer match).

Severance will not be paid in cases of gross misconduct.

Pay in lieu of notice is typically paid when an employee is terminated for cause.

10.  Obtain required authorization to proceed and forward form and documentation to Human Resources Specialist.

If termination is approved, goto task #11.  Otherwise, end of activity; goto Employee Performance Corrective Action.

Manager

11.  Forward employee's final time card, if relevant, to the payroll department.

Human Resources Specialist

12.  Review the employee's records to determine whether any special agreements exist between the company and the employee.

These may relate to relocation, extra vacation, employment contracts, signing bonus, etc.

Agreements that will modify the termination process in some way must be noted. 

Examples include:

13.  Determine if employee has any indebtedness.

If there is indebtedness and this is a voluntary resignation or job abandonment, goto task #14.

If there is indebtedness and this is an involuntary termination, goto task #18.

If there is no indebtedness, goto task #19.

14.  Contact employee to discuss the debt and establish a method for repayment.

15.  Prepare an authorization form for the employee to sign.

This will authorize the deduction from the employee's final check.

16.  Obtain the employee's signature.

Many states require the employee's authorization to make any deduction from wages earned, including vacation pay.  This authorization must be made concurrent (within a week) of the preparation of the final check. 

If the outstanding debt exceeds the payroll due, or the employee does not agree to its deduction, a promissory note must be created for inclusion in the exit package.

If the employee signs the authorization, goto task #19.  Otherwise, goto task #17.

17.  Prepare a promissory note to include in exit package.

Goto task #19.

18.  Prepare an authorization form for the employee to sign during the exit interview that will authorize the deduction from the employee's severance check, if applicable, or request repayment.

If the termination includes no severance pay, you will need to prepare a promissory note.

19.  Modify the Employee Profile form, as required, and forward to Human Resources Administration Manager.

Human Resources Administration Manager

20.  Review and approve the Employee Profile form.

21.  Return the form, noting any changes, to the Human Resources Specialist.

Human Resources Specialist

22.  Forward a copy of the Employee Profile to the payroll department.

This will notify them of a termination.

23.  Update employee records, terminating employee.

Oracle HRMS
N > People > Enter and Maintain
M > Query a Person
B > Others > End Employment
Terminate

Refer to Ending Employment

Accounting Clerk

24.  Process final payroll check.

Oracle HRMS
N > People > Enter and Maintain
M > Query a Person
B > Assignment > Others > QuickPay
QuickPay

Refer to Payroll Runs and Processes

25.  Forward the final payroll check to the Human Resources Specialist.

The check must be delivered by the date requested on the Employee Profile.

Human Resources Specialist

26.  Complete an Exit Interview Checklist.

Checklist should include:

27.  Compile a termination package for the employee.

Termination package should include:

Termination package may also include:

28.  Give exit package, checklist, and final check to Human Resources Representative.

If termination is voluntary or job abandonment, goto task #31.  Otherwise, goto task #29.

Manager and Human Resources Representative

29.  Discuss logistics for termination meeting.

Outplacement services may be provided to senior technical and management employees as part of a termination package.

Outplacement services are typically provided to all impacted employees in the case of a RIF.

30.  Terminate employee.

If the employee is being terminated for cause, state the reasons for the decision, reminding the employee of the actions and conversations that have previously occurred.

If the employee is being terminated as part of a reduction in force, provide information on the overall business situation and resulting decisions and clearly state that the employee is affected by that decision.

Be sure you maintain control of the conversation. Keep it brief and matter of fact. 

The employee may want to come in after hours, with prior arrangement, to pack up personal belonging.

Goto task #34.

31.  Notify affected departments of employee resignation.

These department include:

Human Resources Representative

32.  Schedule an exit interview with employee.

This includes items noted on the checklist, e.g., credit cards, equipment, keys, badges, etc.

In cases of job abandonment, an attempt should be made to contact the employee.  If the employee is located, a time should be scheduled.  If not, the exit materials and final pay check should be sent certified mail.

Manager

33.  Meet with employee to transition work and materials.

Ensure that all work is transitioned to someone else and that all materials and work in progress is accounted for.

Human Resources Representative

34.  Conduct benefit exit interview.

This includes:

If the exiting employee is out of the area, the package and check(s) will need to be mailed via overnight delivery, with a telephone call scheduled to go over the forms.

35.  Conduct exit interview.

Refer to Exit Interview.

Employees leaving involuntarily may choose not to be interviewed at this time.  They can be asked to submit the form via mail or to schedule a later time to come in for an interview.

The Human Resources Representative should periodically use exit interview data to review and identify any significant trends that might be problem indicators.

36.  Submit all paperwork and company property to the Human Resources Specialist.

Human Resources Specialist

37.  Notify all affected departments that the termination has happened.

38.  Distribute forms and company property to proper owners.

Information Services Manager

39.  Complete the tasks required on the checklist.

In some cases, the terminating employee may be allowed to maintain the voice mail for some agreed upon time limit.  This would most commonly occur in a reduction in force and with senior level and executive terminations.

40.  Return completed form to Human Resources Specialist.

Security Manager

41.  Complete the tasks required on the checklist.

42.  Return completed form to Human Resources Specialist.

Benefits Analyst

43.  Forward COBRA notification packet, via mail, to all eligible covered dependents.

Oracle HRMS
N > Processes and Reports > Submit Process and Report
Submit Request

Refer to Obtaining COBRA Reports and Standard Letters (Basic Benefits)

Notice of COBRA rights, the plan rates, and an election form must be sent within 14 days of notification.

Notification should be sent to each eligible participant and should include the expiration date of the eligibility.

Human Resources Specialist

44.  Prepare termination file and remove from active personnel files.

End of activity.

Goto COBRA Administration.

Goto Initiating Personnel Requisitions, as necessary.


Employee Termination: Flowchart Employee Performance Corrective Action Start Manager Task #1 Decision Decision Manager Task #2 Decision Manager and Human Resources Representative Task #3 Decision Manager and Human Resources Representative Task #4


Employee Termination: Flowchart Decision Manager and Human Resources Representative Task #5 Manager Task #6 Decision Decision Manager Task #7 Manager and Human Resources Representative Task #8 Decision End Employee Performance Corrective Action


Employee Termination: Flowchart Manager and Human Resources Representative Task #9 Task #10 Decision End Employee Performance Corrective Action Manager Task #11 Human Resources Specialist Task #12 Task #13 Decision Decision


Employee Termination: Flowchart Human Resources Specialist Task #14 Task #15 Task #16 Decision Human Resources Specialist Task #17 Human Resources Specialist Task #18 Human Resources Specialist Task #19 Human Resources Administration Manager Task #20 Task #21


Employee Termination: Flowchart Human Resources Specialist Task #22 Task #23 Terminate Accounting Clerk Task #24 QuickPay Accounting Clerk Task #25 Human Resources Specialist Task #26 Task #27 Task #28 Decision Manager and Human Resources Representative Task #29 Task #30 Manager and Human Resources Representative Task #31 Human Resources Representative Task #32


Employee Termination: Flowchart Manager Task #33 Human Resources Representative Task #34 Task #35 Task #36 Human Resources Specialist Task #37 Human Resources Specialist Task #38 Information Services Manager Task #39 Task #40 Security Manager Task #41 Task #42 Benefits Analyst Task #43 Submit Request Human Resources Specialist Task #44 End COBRA Administration Initiating Personnel Requisitions

Effective: mm/dd/yy

Revision: 1