Termination Checklist for 2026 (Procedures and Guidelines)
There’s no doubt about it - laying off employees is extremely difficult but sometimes necessary for business. I know this has been the most difficult part of my journey as a business owner.
But what all goes into a layoff and how do you make sure those steps are properly followed?
From personal experience, I know this can be a lot to remember which is why we’ve put together a detailed termination checklist around proper procedures and guidelines.
This guide shows you what to pay attention to when you're laying off employees. It talks about the right way to perform a termination, making a clear plan for letting people go, following legal rules, arranging for severance pay, and being kind to the people affected.
Think of it like a map for handling layoffs in a careful and organized way.
What's really great about this checklist is that it doesn't just tell you about the correct rules and regulations to follow. It also provides an explanation for each aspect and reasoning why.
Make it your own when it comes to building the steps needed to properly lay off employees, but hopefully this will help get things started. Best of luck!
Termination Checklist
Why a Structured Checklist Matters
Handling layoffs without a clear process can result in legal headaches, risk to your company reputation, and emotional fallout among your team. That’s why I always start with a solid termination checklist for employers—it helps ensure nothing gets missed and that people are treated with respect throughout.
For instance, Paychex advises preparing strong documentation, drafting clear separation letters, swiftly notifying IT, and planning seamlessly for knowledge transfer and team continuity.
My Go-To Layoff Procedures Checklist
Here's how I walk through each step—making sure everything is thoughtful, compliant, and clear:
1. Preparation and Legal Review
Document the rationale and gather performance reviews or business data relevant to any RIF scenario.
If needed, consult legal counsel to avoid missteps and ensure compliance with laws like the WARN Act Wikipedia.
2. Plan the RIF Strategy
Define your organizational goals—why is the reduction necessary?
Consider alternatives like pay cuts, hiring freezes, or voluntary redundancies before finalizing decisions
3. RIF or Layoff Checklist Execution
Develop a RIF checklist with clear phases: decision, preparation, notification, and recovery
4. Communication Strategy
Prepare separation letters that outline final pay, benefits, property return, etc.
Communicate clearly and compassionately during termination meetings, with HR support present SHRM+15Paychex+15iacma.net+15.
5. Logistics and Follow-Through
Coordinate with IT to revoke access and ensure asset returns.
Plan how to redistribute responsibilities or transition work for continuity
6. Legal and Documentation Compliance
Keep detailed records (termination letters, meeting notes, benefit notifications).
Ensure final pay and any severance arrangements are appropriately handled
7. Post-Layoff Support & Communication
Provide or outline unemployment resources, COBRA options, and outplacement help.
Address your organization honestly—share next steps with remaining employees and offer reassurance Turbo Transitions+7Paychex+7Careerminds+7.
Frequently Asked Questions (FAQ)
What’s the difference between a “layoff checklist” and a “termination checklist for employers”?
They overlap, but they are built for different scale and risk patterns. A layoff checklist is usually designed for multiple employees at once, often across roles or departments, and it emphasizes consistency, timing, coordination, and documentation across a larger group. It typically includes items like selecting roles for elimination, aligning internal messaging, planning manager training, preparing FAQs, coordinating notice requirements, and organizing offboarding at volume. A termination checklist for employers is usually for a single employee situation and focuses more on individual documentation, final conversation planning, company property return, system access removal, and a clean handoff of work. Both should cover the basics, but layoffs tend to add complexity around fairness, communication strategy, and compliance planning.
What is a “RIF checklist”?
RIF means Reduction in Force. A RIF checklist is a structured plan for workforce reductions that are driven by business needs such as budget cuts, restructuring, site changes, or reduced demand, rather than an individual employee’s performance. It typically breaks the process into phases, like planning, selection and documentation, legal and compliance review, communications, separation logistics, and post event stabilization. The goal is to keep execution consistent across the organization, reduce confusion, and ensure you can clearly explain the business rationale and the process used. The WARN Act is one of the laws that can become relevant in larger RIF situations involving plant closings or mass layoffs, depending on coverage and thresholds.
Are terminations and layoffs handled the same way?
The foundation is similar: plan, communicate clearly, handle pay and benefits correctly, and complete logistics like access removal and equipment return. The difference is the intent and the coordination required. Terminations often center on an individual’s situation and documentation trail, while layoffs focus on business reasons and consistent handling across a group. Layoffs also tend to require more planning around timing, standardized messaging, manager enablement, public facing reputation risk, and coordinated support like outplacement or job transition resources. In many cases, layoffs also involve more stakeholders internally, including legal, HR leadership, finance, and sometimes compliance teams.
What role does the WARN Act play in layoffs?
The WARN Act is a federal notice law intended to give workers time to prepare for job loss in certain large events. In general, it requires most covered employers with 100 or more employees to provide 60 days notice before certain plant closings and mass layoffs, although there are definitions, thresholds, and exceptions that matter in real situations.
It also interacts with state level “mini WARN” laws in some places, which can have different employer size thresholds or longer notice periods. For example, New York has a state law with a 90 day notice requirement in certain cases.
Because the rules are fact specific, employers typically review WARN obligations early in the planning phase for any large reduction and confirm requirements with counsel.
Should I always offer severance?
In most cases, severance is not legally required under federal law, and the U.S. Department of Labor notes it is generally a matter of agreement between the employer and employee, or based on policy or contract.
That said, many employers still choose to offer severance in layoffs or certain separations to reduce friction, show goodwill, and support a smoother transition. Severance can also help protect the organization when paired with the right documentation and a consistent process. The key is to plan it carefully, apply it consistently, and make sure the terms match your policies and any required agreements.
How do I handle remaining employees?
Treat this as its own communication moment, not an afterthought. Share what you can about the business rationale, what changes immediately, what stays the same, and how workloads and priorities will be handled going forward. Employees also want to know what support is available, what leadership is doing next, and where to ask questions without rumors spreading. Clear communication, delivered quickly and consistently, reduces anxiety and helps prevent morale issues, productivity drops, and surprise resignations. It also helps rebuild trust when people are watching closely to see whether leadership is organized, transparent, and humane.
Wrapping It Up
From my approach, solid layoff procedures backed by a thorough layoff checklist or termination checklist for employers helps us act with clarity, compassion, and compliance. Whether it's a small role or a larger RIF event, following these structured steps ensures decisions are handled responsibly—and with as much dignity as possible for everyone involved.
Tags: Criteria for laying off employees, layoff checklist, layoff guidelines, layoff procedures, layoff checklist for employers, termination checklist, how to layoff employees
Author: Reid Alexander
Disclaimer: This document is intended as a general guide and should not be considered as legal advice or a definitive resource on the subject matter. Always consult with your Human Resources and legal department for specific advice and guidance tailored to your organization's unique situation and legal jurisdiction. This guide is not a substitute for professional legal consultation and should not be solely relied upon for making decisions regarding legal or HR matters. The author & publisher disclaim any liability for errors, omissions, or actions taken based on this content.