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What is offboarding? How to terminate and offboard an EOR employee?

What is offboarding? How to terminate and offboard an EOR employee?

Hire and pay talents
with Horizons in
180+ countries

Key Takeaways

1. Offboarding is the structured process of transitioning an employee out of an organization, ensuring a smooth exit.

2. Proper offboarding retains organizational knowledge, protects sensitive data, and maintains positive alumni relations.

3. Offboarding remote global employees involves navigating diverse legal, cultural, and logistical nuances. An Employer of Record (EOR) can help navigate this process seamlessly. 

4. Utilizing digital tools and a single platform to streamline remote exit interviews, asset retrieval, and knowledge transfer is critical. This can be simplified if your remote global employee is managed by an EOR provider. 

5. Constructive feedback during offboarding offers insights for future hires and continuous organizational improvement.

In this article, we highlight the structure of a seamless offboarding process, and how you can terminate and offboard an employee with an EOR like Horizons. 

What is offboarding?

Offboarding is an HR process that officially separates an exiting employee from their employer. It is the final step in the employee lifecycle. After the employee resigns, their position is terminated or they retire.

The purpose of employee offboarding is to maintain positive relations with the exiting employee, ensure company security, transfer the employee’s knowledge to their replacement or team, minimise disruption, and collect feedback for the company. 

An offboarding process usually occurs in the last few weeks of the departing employee’s employment, with most tasks completed on the Last Working Day (LWD), right before the employee leaves.

Why should you create a positive and seamless offboarding experience?

Ending an employment relationship can often be an unpleasant process. Whether it’s a voluntary resignation, end of contract due to performance, or a layoff, the offboarding experience is critical to maintain your employer brand. 

A report by People Path and Cornell University found that round one-third of former employees maintain connections to previous employers. Additionally, 15 per cent of new hires come from referrals from former employees

A Glassdoor survey also revealed that nearly 70 per cent of job seekers research company reviews before making career decisions. Most of these reviews are written by former employees of a company. To top this, only 2 per cent of employees think their employer does a good job offboarding new team members.

Employees departing in an unpleasant manner can have substantial negative consequences, and it is imperative to curate a smooth transition with a structured offboarding program. This not only helps avoid future legal problems, but it nurtures your employer brand as well.

What are the steps to offboard a global remote employee?

Offboarding an employee involves a series of systematic steps to ensure a smooth transition for both the departing employee and the organization.

Here are the general steps for offboarding an employee:

01. Notification and Documentation:

Receive a formal resignation or termination notice from the employee or relevant department. The resigning letter should clearly state the employee’s last working day and express gratitude for the opportunities provided by the company. Document the reason for departure, whether it’s a resignation, retirement, layoff, or termination.

02. Schedule an Exit Interview:

Arrange a time for the departing employee to meet with HR or their manager. Use the interview to gather feedback about the employee’s experience, reasons for leaving, and suggestions for improvement.

03. Review Final Compensation:

Calculate the final pay check, including any outstanding pay, accrued vacation, bonuses, and other entitlements. Inform the employee about post-employment benefits or compensations, such as severance pay or continuation of health benefits.

04. Reclaim Company Property:

Collect all company assets like laptops, mobile phones, ID cards, keys, and any other equipment or materials. Ensure the return of any confidential documents or data.

05. Update IT and Security:

Inform the IT department to deactivate the employee’s email account, access to internal systems, and any other digital accounts associated with the organisation. Change passwords or access codes to sensitive information or locations. Review and revoke any remote access privileges. Ensure there are no unauthorised access or data breaches.

06. Manage Knowledge Transfer:

Ensure the departing employee transfers ongoing project details, contacts, and other pertinent information to a designated colleague. Organise training or handover sessions, if necessary.

07. Update HR Records:

Update the employee’s status in HR systems to reflect their departure. Store all relevant documentation, such as the resignation letter and exit interview notes, in the employee’s personnel file.

08. Benefits and Compliance:

Provide information about continuation or termination of benefits, such as health insurance or retirement accounts. Ensure compliance with legal or contractual obligations, such as non-compete or non-disclosure agreements.

09. Communicate to the larger team:

Notify the team and relevant stakeholders about the employee’s departure. Share any changes in responsibilities or reporting structures.

10. Provide Transition Assistance (in case of layoffs):

Offer resources for job placement, counselling, or training. Consider creating an alumni network or group where former employees can stay connected. This can be beneficial for future networking, referrals, or re-hires.

11. Conduct a Final Review:

Ensure all offboarding tasks have been completed. Check for any pending issues or concerns that need to be addressed. 

12. Send a Formal Departure Letter:

Provide the departing employee with a formal letter confirming their last day, any agreements made, and other pertinent details.

Specific steps and their order can vary based on the organization’s policies, the nature of the employment, and local regulations. It’s essential to tailor the offboarding process to the needs and circumstances of the employee and the organization.

How can an Employer Of Record (EOR) help with offboarding an employee?

It is critical that a company’s offboarding process is just as structured and planned as the onboarding process

An Employer of Record (EOR) can assist with offboarding a global remote employee in the following ways:

  1. Compliance with Local Laws: EORs ensure adherence to country-specific employment laws, preventing potential legal issues during the termination process.

  2. Final Payments: They handle final compensation, including outstanding salaries, benefits, and any severance or end-of-service bonuses, following local regulations.

  3. Asset Retrieval: EORs can manage the return of company assets, such as laptops or other equipment, from remote locations.

  4. Documentation: They facilitate the completion and storage of exit paperwork, including non-disclosure agreements or non-compete clauses, if applicable.

  5. Feedback Collection: EORs can conduct exit interviews, providing valuable feedback for companies to refine their hiring and management processes.

How does Horizons offboard an employee?

You can manage and offboard employees in one-single platform

First, the Employer Of Record (EOR), Horizons will carefully review all the facts and circumstances.

In certain situations, Horizons may advise you to reconsider your request, including your desired termination date to comply with local legal requirements to ensure a lawful termination.

Due to local compliance and privacy laws, Horizons will lead all communication with the employee about their offboarding. It is always recommended that the employer not notify the employee of their intention to terminate their employment agreement without consulting with their EOR. 

A legal expert from Horizons will guide you through the process and act as your primary point of contact. In complex terminations, the process will be managed by team Horizons.

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How to begin the termination process and offboard an EOR employee with Horizons?

  1. Employee Selection: Choose the employee for termination, ensuring you have valid reasons aligned with your company policy.

  2. Contract Termination: Initiate a request with Horizons to end the employment contract.

  3. Termination Details: Horizons will ask you to provide specifics such as termination reason, prior communication with the employee, desired offboarding date, leave status, and any severance or entitlements.

  4. Documentation: Horizons will require you to submit relevant evidence supporting your termination request, including performance reviews, attendance records, and any proof of misconduct.

  5. Country-Specific Info: For certain countries, Horizons will require you to provide additional details per local regulations. Adjustments to the last working day or payment settlement might be necessary based on local laws.

  6. Review & Submission: After detailing your request, submit it to Horizons. An expert will assess the provided information and initiate the termination process.

  7. Progress Tracking: Monitor the status of your termination request post-submission.

Frequently Asked Questions

An EOR ensures compliance with local employment laws, manages final compensations, and handles asset retrieval during the offboarding process.

Yes, EORs facilitate completion and storage of all necessary exit documents in line with local regulations.

An Employer of Record (EOR) like Horizons plays a pivotal role in ensuring that the offboarding process of a global remote employee aligns with local legal standards. Maintaining an in-depth understanding of country-specific employment laws, Horizons ensures that every step, from the initial notice of termination to the final compensation payout, adheres to local regulations. This meticulous approach not only prevents potential legal repercussions for the company but also ensures that the rights and entitlements of the departing employee are fully upheld, fostering a professional and respectful termination process.

Yes, EORs like Horizons conduct exit interviews, gathering valuable feedback to help companies refine their global management strategies.

EORs handle outstanding salaries, benefits, and any country-specific severance or end-of-service bonuses.

Hire and pay talents
with Horizons in
180+ countries

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