Employee Leavers Checklist for Employers

For business owners and HR professionals in the UK, managing employee resignations can be stressful… but the good news is, it doesn’t have to be. This comprehensive leavers checklist covers everything from acknowledging resignation to issuing P45s, calculating final pay and recovering company assets.

Whether you’re a small business handling your first resignation or an experienced HR team refining your offboarding process, this employee leavers checklist ensures you stay compliant with UK employment law while protecting your business.

What you’ll find in this leavers checklist:

• Immediate actions when an employee resigns
• Payroll and pension requirements for leavers
• Company asset and data security procedures
• Legal obligations and record retention

Getting offboarding right isn’t just good practice, it’s essential for staying compliant, protecting your business and maintaining team morale. We’ll break down the entire offboarding journey into manageable steps, so you can handle every departure professionally and efficiently.

Using our leavers checklist

Offboarding is pretty much the mirror image of onboarding. So just as you wouldn’t bring someone into your business without a structured plan, you shouldn’t let them leave without one either. 

A comprehensive employee leavers checklist ensures nothing falls through the cracks, from final pay calculations to data security and helps you avoid costly compliance mistakes down the line.

This guide breaks down the entire offboarding journey into manageable steps, so you can handle every departure professionally and efficiently.

What to do when an employee resigns

The moment you receive a resignation letter, the clock starts ticking. Following a structured staff leavers checklist from day one protects your business and ensures a compliant, professional offboarding process.

Here’s exactly what you should do after receiving a resignation letter:

• Verify notice period and key details: Before doing anything, check the employees contract and company policies to verify the correct notice period. 
• Formally acknowledge the resignation: In writing confirm you have received the resignation. This is also the right time to confirm key details, such as:
  • Intended last day at work.
  • Whether they will work their notice period or if you are putting them on garden leave.
  • Any outstanding leave.
• Schedule the transition conversation: Within the first day or two, schedule a brief initial conversation to discuss the transition plan. This isn’t the exit interview,that comes later. This meeting should cover:
  • Handover responsibilities and who’ll take over their duties
  • Key projects that need completing or transitioning
  • Timeline for documenting their role and processes
  • Any immediate concerns or questions they have

Updating records after a resignation

Accurate record-keeping is your first line of defence against future disputes and a critical step in any employee leavers checklist. Update your HR system immediately to reflect the employee’s leaving date and resignation status. Document everything, including:

• The resignation date. 
• Notice period.
• Final working day.
• Reason for leaving (if discussed). 

You’ll also need to notify your payroll system to ensure their final pay is calculated correctly. This includes flagging any changes to pension contributions, benefits or salary sacrifice arrangements that need to be adjusted or ceased.

Handling the departing employee’s job title and responsibilities

For many SMEs teams are small and there is generally only one person doing a particular role. This means the second they walk out the door, you’ve lost all of their knowledge about what they do and how they do it. Don’t let this be you. 

Before a member of the team leaves, make sure you’ve captured what they do. Ask them to document their day-to-day tasks, ongoing projects, key contacts, system access and any institutional knowledge that isn’t written down anywhere else.

This documentation becomes invaluable for recruiting their replacement or redistributing work among existing team members. It also protects your business continuity, there’s nothing worse than discovering three months later that no one knows how to access a critical supplier account.

Finalising payroll for leavers

Getting the final paycheck wrong is one of the most common (and avoidable) mistakes employers make. Your end of employment payroll process needs to account for several moving parts, such as:

• Salary up to the final working day. 
• Outstanding holiday pay (or deductions for overused leave).
• Unpaid bonuses or commission.
• Expenses owed.
• Any salary deductions like loans or advance payments.

Don’t forget to process their final pension contribution and notify your pension provider that the employee is leaving. For step-by-step guidance on calculating final pay accurately, consult our payroll guide which covers UK-specific requirements.

Managing unused holiday entitlement

Under UK employment law, businesses must pay departing employees for any accrued but untaken statutory annual leave. To do this, calculate their holiday entitlement up to their leaving date, subtract any days already taken and include the balance in their final pay.

If they’ve taken more holiday than they’ve accrued, you’re generally entitled to deduct the excess from their final pay. But before doing this, check their contract and get a written agreement where possible. Getting this calculation wrong can lead to tribunal claims, so accuracy matters. Our payroll continuity checklist includes a holiday pay calculator to help you get it right.

Issuing a P45 and other required documents

In the UK, businesses are required to issue P45’s when someone leaves. But it’s important to remember that there is a timeframe on this and it needs to be completed on or before the final payday. 

The P45 shows their total pay and tax deducted for the tax year to date and allows them to start a new job without being put on an emergency tax code.

You’ll also need to provide a final payslip and, if applicable, confirmation of pension contributions made during their employment. Keep copies of all documents issued for your own records. Need a refresher on PAYE processes? Check out our introduction to PAYE resource.

Conducting an exit interview

Exit interviews are one of the most underused tools in an employer’s toolkit, but a good employee leavers checklist doesn’t forget about them. When conducted well, they provide honest insights you simply won’t get any other way: why people really leave, what could be improved and how your business is perceived from the inside.

Keep the conversation structured but relaxed. Ask open-ended questions about their experience, what worked well, what didn’t and what would have made them stay. Reassure them that their feedback will be used constructively—and actually follow through by identifying patterns and acting on them.

Ensuring compliance with notice periods

Notice periods protect both parties, but they must be handled correctly. Statutory minimum notice in the UK is one week for employees with at least one month’s service, increasing to two weeks after two years. Contractual notice periods often exceed the statutory minimum and it’s the longer period that applies.

You can agree to waive some or all of the notice period (known as payment in lieu of notice, or PILON), but make sure this is documented and that any PILON payments are calculated correctly, they’re usually subject to tax and National Insurance.

Protecting company data and assets

When someone resigns, it’s important to get an understanding of what data and assets they have access to. Create a leavers checklist of all company property, including:

• Laptop.
• Mobile phone.
• Security pass.
• Keys.
• Credit cards.
• Uniforms. 
• Written confidential documents or data.

Schedule a return date before their last day and get written confirmation once everything’s been handed back.

Don’t overlook digital assets either. Ensure they return or delete any company files stored on personal devices and confirm they’ve transferred ownership of any work-related accounts or profiles (e.g. supplier relationships, social media).

Managing access to systems and accounts

Ensuring data security in times of change is important for businesses, so don’t fall into the trap of thinking the security process ends when someone resigns. Instead, on an employee’s final day make sure you revoke access to:

• Email accounts.
• Internal systems.
• Cloud storage.
• CRM platforms. 
• Payment systems.

Notify your IT team (or provider) well in advance so nothing gets missed. Change passwords for any shared accounts they had access to and ensure their email is either forwarded to a manager or set to auto-reply with an alternative contact. If they had administrative access to any systems, this becomes even more critical.

Communicating the departure to the team

As always, communication is key and finding the right opportunity to officially announce the departure matters. Wait until the employee has informed anyone they want to tell personally, then communicate the news to the wider team promptly and professionally. Keep the message factual by acknowledging their contribution, confirming their leaving date and explaining how their work will be covered in the interim.

Avoid speculation about why they’re leaving unless they’ve chosen to share their reasons. Transparency builds trust, but respect their privacy too.

Handling references for former employees

You’re not legally required to provide a reference, but if you do, it must be accurate and fair. Stick to facts:

• Job title.
• Dates of employment.
• Key responsibilities.
• Attendance. 

Avoid subjective opinions or unsubstantiated claims—anything you write must be defensible.

If there were performance issues, tread carefully. An unfair or misleading reference can expose you to legal claims from both the former employee and the prospective employer. When in doubt, consult your legal or HR advisor.

Legal considerations for leavers

Offboarding is riddled with potential legal tripwires. Ensure the resignation is genuine and not made under duress or constructive dismissal. Be mindful of discrimination risks—treat all leavers consistently regardless of protected characteristics.

If you’re considering making the notice period shorter or longer, get professionallegal advice first. And if the departure follows disciplinary issues or grievances, document everything meticulously and consider seeking specialist HR support.

Retaining employee records post-departure

GDPR doesn’t mean you have to delete everything the moment someone leaves. You’re required and in some cases legally obligated, to retain certain employment records for set periods. Some examples include:

• Payroll and tax records: For at least three years after the end of the tax year. 
• Pension records: For six years. 
• Records related to accidents or workplace injuries for at least three years, however, it is advisable to retain them for longer (e.g., 5-7 years) for potential long-term, delayed, or complex claims

What you can’t do is hold onto data indefinitely without justification. Develop a clear retention policy and stick to it. For more on year-end compliance, see our end of financial year UK guide.

Managing pension contributions for leavers

On or shortly after an employee’s final working day, you must process their last pension contribution and notify your pension scheme administrator that they’re leaving. This important step on your leavers checklist ensures compliance with pension regulations. Calculate the final contribution based on pensionable earnings up to their last day, including any salary sacrifice arrangements.

Most pension providers have online portals where you can update member status. You’ll need to provide:

• The employee’s details.
• Final date of pensionable service.
• Confirmation of final contribution amounts.
• Reason for leaving. 

Provide the departing employee with details of their pension pot and explain their options: they can usually leave the pension where it is, transfer it to a new employer’s scheme, or consolidate it with other pensions. Give them their scheme name, provider contact details and member reference number so they can manage their pension after leaving.

If they were in a salary sacrifice arrangement, ensure this is reflected correctly in their final pay and P45. Don’t forget to update your auto-enrolment records and retain pension documentation for at least six years, it’s a legal requirement under pension scheme regulations.

Addressing restrictive covenants and non-compete clauses

If your departing employee’s contract includes restrictive covenants,such as non-compete clauses, non-solicitation agreements, or confidentiality provisions, now is the time to review them carefully. These post-employment restrictions exist to protect your legitimate business interests, but they must be reasonable to be enforceable.

Before the employee leaves, remind them in writing of any restrictions that apply, including their duration and scope. Be specific about which clients or suppliers are covered, what geographic area applies and how long the restrictions last. This isn’t about being heavy-handed, it’s about clarity and protecting your business.

If you suspect a breach after they’ve left (for example, they’ve joined a direct competitor in violation of a non-compete or they’re soliciting your clients), seek legal advice immediately. Courts won’t enforce overly broad or unreasonable restrictions, so understanding where you stand is critical before taking action. 

Planning for a smooth handover

A structured handover plan is something a good employee leavers checklist shouldn’t forget about. Work with the departing employee to create a detailed handover document covering:

• Current projects.
• Deadlines.
• Key contacts.
• Passwords.
• Ongoing issues.
• recommendations for their successor.

Schedule handover meetings with the people who’ll be picking up their work. If you’re recruiting a replacement, consider whether the outgoing employee can assist with training their successor.

Supporting the team during transitions

Departures can unsettle teams, especially if the leaver was well-liked or held a critical role. Acknowledge the change openly, reassure the team about how responsibilities will be managed and invite questions or concerns.

Check in regularly with those absorbing extra work and make it clear that the arrangement is temporary. Recognise their extra effort and keep them informed about recruitment progress. People leave, but your remaining team members are the ones who’ll carry your business forward.

Rehiring former employees: What to consider

Boomerang employees, those who leave and later return, are increasingly common. Before you rehire a former employee, think carefully about why they left in the first place and whether those issues have been resolved. If they left due to limited career progression and you still can’t offer that, you’ll likely face the same problem again.

There are genuine advantages to rehiring someone who already knows your business, culture and systems. They can hit the ground running with minimal training and their return can boost team morale if they were well-regarded. However, you also need to consider how their departure and return might affect existing team dynamics.

From a legal and administrative perspective, you may need professional advice as to whether their previous service counts towards continuous employment. Continuity may be preserved in certain cases where the reason for the break in service was deemed to be a “temporary cessation of service”, which may affect entitlements like unfair dismissal protection and redundancy pay. 

With any returning employee it is generally a good idea to treat their return as you would any new hire: conduct proper interviews, check references and issue a new contract reflecting current terms.

Make offboarding effortless with Employment Hero

Offboarding may never feel as exciting as onboarding, but it’s just as important to get right. A clear, structured employee leavers checklist helps you stay compliant, protect your business and leave a positive lasting impression on departing employees. From managing final pay and pension contributions to safeguarding company data and supporting your remaining team, every step plays a role in a smooth transition. By following a consistent process, you reduce the risk of errors, maintain professionalism and create a better experience for everyone involved. 

Want to make sure you nail offboarding every time?