9 Things You Should Do When an Employee Resigns
Employee resignations are inevitable in any growing organization. Handling them with professionalism and structure not only protects your business but also leaves a positive impression on departing employees and the rest of your team.
Here’s a comprehensive, step-by-step offboarding checklist for 2025 to ensure a smooth transition for everyone involved.
Step 1: Acknowledge and Document the Resignation
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Promptly acknowledge receipt of the resignation in writing.
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Request a formal resignation letter stating the last working day and whether the notice period will be served or replaced with leave.
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Notify relevant stakeholders (HR, IT, payroll, reporting manager) about the resignation.
Step 2: Communicate the Departure Internally
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Inform the employee’s team, cross-functional partners, and senior management about the exit.
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For customer-facing roles, communicate the transition plan to key clients or external stakeholders.
Step 3: Plan the Transition and Knowledge Transfer
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Identify pending projects and critical responsibilities.
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Assign handover tasks and schedule knowledge transfer sessions.
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Allow sufficient time for a smooth handover before the last working day.
Step 4: Reclaim Company Property
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Prepare a checklist of assigned assets (laptops, ID cards, mobile phones, credit cards, documents, etc.).
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Schedule a meeting to collect items and have the employee sign an acknowledgment of return.
Step 5: Revoke System and Facility Access
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Deactivate IT accounts, email, cloud tools, and internal databases.
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Disable access badges, biometric systems, and remote VPNs.
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Inform third-party vendors to revoke access to any external portals.
Step 6: Conduct the Exit Interview
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Schedule a structured exit interview close to the last day.
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Use open-ended questions to gather honest feedback on work culture and reasons for leaving.
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Document insights for future HR improvements.
Step 7: Settle Final Payments and Complete Documentation
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Process all dues: salary, leave encashment, bonuses, gratuity, etc.
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Obtain “No Dues” certificates from all departments.
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Issue relieving and experience letters, and any additional requested documents.
Step 8: Update Company Records and Organizational Charts
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Update internal directories and organizational charts.
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Remove the employee from communication tools, groups, and distribution lists.
Step 9: Conduct a Security and Confidentiality Debrief
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Remind the employee of ongoing confidentiality obligations.
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For sensitive roles, conduct a formal security debriefing.
Step 10: Offer Support for Future Opportunities
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Offer to provide reference letters or certifications.
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Maintain a positive relationship for future collaboration or rehiring.
✅ Offboarding Checklist Summary
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Acknowledge and document resignation
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Notify all relevant stakeholders
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Communicate departure internally and externally
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Plan knowledge transfer and transition
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Collect all company property
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Revoke all IT and facility access
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Conduct exit interview and gather feedback
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Settle final payments and issue documents
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Update company records and directories
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Conduct security debrief and confidentiality reminder
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Offer references and support for future opportunities
Frequently Asked Questions (FAQ)
Q1: What is an employee exit process?
An offboarding process is a structured series of steps followed when an employee leaves, ensuring compliance, asset protection, and brand integrity.
Q2: Why is a formal resignation letter important?
It officially records the intent to resign, confirms the last working day, and ensures legal and HR compliance.
Q3: What should be included in an offboarding checklist?
Key steps include resignation management, access revocation, knowledge transfer, asset return, final payments, and feedback collection.
Q4: How do you ensure data security during offboarding?
Immediately revoke access, change passwords, and remove the employee from systems. Conduct a security debrief for sensitive roles.
Q5: What is the purpose of an exit interview?
To gain honest insights about work experience, management, and reasons for resignation—valuable for improving retention.
Q6: What documents should be given to the departing employee?
Include the relieving letter, experience letter, full-and-final settlement details, and references if requested.
Q7: How do you communicate an employee’s departure to the team?
Notify the team, leadership, and clients as appropriate. Share the transition plan to ensure operational continuity.
Q8: What are the legal requirements for offboarding in India?
Ensure all statutory dues are paid, and required documents issued, in accordance with Indian labor laws.
✍️ Final Thoughts
A well-structured offboarding process protects your organization, ensures legal compliance, and maintains a positive employer brand. Use this checklist to make every employee exit a respectful, smooth, and efficient experience.