“I quit.”
And with that, the resignation hits the desk. A moment every company faces eventually and one that deserves a professional, thought-through response.
No one dreams of writing the perfect exit process. And honestly, most people don’t even think it’s worth the effort. There’s usually a checklist somewhere, and almost every time, it’s incomplete, standardized, and doesn’t reflect the actual situation of the person leaving.
If you’re now thinking, “Well, it does the job,” hold on to that thought.
The moment complaints roll in about missing leave payouts, someone asks, “Where’s their work laptop?” or “Did anyone note the last client updates they handled?” – that’s when you realise: it didn’t do the job.
In reality, offboarding often drags on. Steps get skipped. Too many people get involved. No one truly owns the process, and confusion spreads. By the end, no one knows what’s been done or what’s been forgotten.
What’s often ignored is that an employee’s departure is a business process, just like onboarding, payroll or sales. It deserves thought, structure, and intention. Because how you handle someone’s last days says a lot about you as an employer and how well your organisation actually works behind the scenes.
In short: sloppy offboarding is an emotional and legal risk, creates avoidable costs, and shapes your reputation as an employer, whether you like it or not.
If you’ve been in this position and want to improve, this article is for you. Whether you’re designing the entire process, executing it, or jumping in at one step along the way offboarding matters. And a smooth, thoughtful transition is always worth it.
You’ll walk away with:
- A step-by-step offboarding process that’s both compliant and human
- The tools to prevent common offboarding mistakes before they happen
- A documentation approach that protects your business and improves future hires
- Smart ways to use exit interviews as a feedback loop — not a formality
- Tactics to leave a lasting positive impression, even when the exit wasn’t ideal
- Tips that turn offboarding into a cultural strength, not just a task list
Offboarding Step-by-Step
A clear, human and people first approach, and efficient process makes all the difference for the leaver and for the people staying behind. Here’s how to do it right, from start to finish.
Step 1: Acknowledge the resignation & agree on the notice period
- Confirm the resignation in writing (email is fine).
- Clarify the notice period based on contract or Award.
- If you’re waiving part of it, get it in writing.
- Inform payroll, IT, and leadership immediately.
It is vital to set the tone here: respectful, clear, and calm. That first response shapes the rest.
Step 2: Confirm final day & communication plan
Don’t wait until the last day to communicate as uncertainty breeds gossip.
- Agree on the final working day, including leave being taken.
- Decide how and when the team will be informed.
- If it’s a sensitive exit, plan the messaging together.
- Draft a short farewell note or internal announcement.
Step 3: Handover of ongoing projects
Don’t let Intellectual Property (IP) walk out the door. Protect it with structure, not panic.
- Set clear deadlines for documentation and task transfers.
- Assign a point of contact for each handover area.
- If needed, schedule shadowing sessions or recorded walk-throughs.
- Make sure clients or key contacts are transitioned properly.
Step 4: Conduct the exit interview
Avoid treating interviews like a script and make them real conversations with structure. That’s when the truth actually comes out.
- Log it in early and don’t leave it until the last day.
- Use open-ended questions and actually listen.
- Let someone neutral (not their manager) run it if possible.
- Flag serious feedback for follow-up or reporting.
Want to learn more? Check out our article on “How to Conduct Exit Interviews Effectively.”
Step 5: Collect tech & deactivate access
A checklist of all issued equipment from onboarding makes this step faster and less risky and share it with IT early.
- Retrieve laptops, phones, passes, uniforms, tools, etc.
- Immediately disable access to email, drives, Slack, HR systems.
- Redirect emails or set out-of-office replies.
- Confirm return of physical or digital keys (Dropbox, CRM logins, etc.).
Step 6: Process final pay
A smooth final pay is the bare minimum and saves you from future headaches.
- Include all entitlements: unused leave, notice period, bonuses (if due).
- Provide a final payslip and payment confirmation.
- Add superannuation and any agreed deductions (e.g. equipment not returned).
- Make sure it’s paid on or before the final day (as per Fair Work).
Step 7: Update the employee file
- Finalise the file with all offboarding records.
- Save the exit interview summary.
- Note rehire eligibility (yes, no, or conditional).
- Archive the file in line with record-keeping laws.
- Lock access to former employee records after archiving for privacy and compliance.
How to document your offboarding process
Having good documentation protects your business, supports your people, and makes your life easier when things get chaotic. Here’s what to track:
Documents for compliance
In disputes, audits, or final pay calculations, documentation are your best friends. If it’s not written down, it didn’t happen.
What to include:
- Resignation letter (or record of verbal resignation)
- Notice period agreement (including any changes or waivers)
- Final working day confirmation
- Any warnings or performance records (if applicable)
- Exit interview form or notes
- Termination checklist signed by responsible parties
Tip: Store documents securely in the employee file and back it up digitally if possible.
Payroll and finance details
Getting this wrong leads to complaints, Fair Work issues, or bad online reviews.
What to include:
- Final payslip with breakdown (wages, unused leave, deductions, etc.)
- Superannuation contributions (final period)
- Any payout agreements (redundancy, garden leave, etc.)
- Return of company expenses or credits (e.g., fuel cards, subscriptions)
Tip: Use a consistent final pay template to avoid missing anything.
Exit interview
It’s your chance to gather insights and catch risks early, but only if it’s documented and reviewed.
What to include:
- Interview date, interviewer, and method (in-person, phone, form)
- Summary of key points (themes, tone, red flags)
- Employee suggestions and frustrations
- Sentiment rating (optional but helpful)
Tip: Don’t just file it away, share themes with leadership regularly.
The updated employee file
Your records must show the full employment lifecycle. This is critical for references, future rehires, or if legal questions arise.
What to include in final update:
- Termination date
- Reason for leaving (resignation, redundancy, etc.)
- Final pay record and signed checklist
- Reference letter (if applicable)
- Any documentation of grievances or conflicts (if relevant)
- Confirmation of hardware return and access deactivation
Tip: Close the file formally and mark it archived or inactive in your system, and lock editing rights if needed.
How to evaluate the offboarding process?
The employee has left. Files are closed. But if your offboarding process just ends there, you’re missing the real opportunity: to learn, improve, and fix the cracks that made them leave in the first place.
Metrics that actually matter
The right offboarding process is mainly a matter of the “employee experience”, however analysing and tracking metrics will help you to understand if you’re on the right path.
- Exit interview completion rate: Are you consistently getting feedback, or skipping the exit conversations?
- Reason for leaving trends: Are people leaving for the same reasons again and again?
- Average time to complete full offboarding: Are there delays with payroll, IT, or documentation?
- System deactivation compliance: Are you closing access fully, and on time?
- Rehire eligibility or actual rehires: How many former employees would (or do) return?
Tip: Visualise your metrics quarterly. Look for patterns, not isolated data points.
Feedback loops
Collecting feedback is easy, however doing something with it? That’s where most fail.
- Schedule a monthly or quarterly review of exit interview themes with leadership.
- Add actionable insights to manager training, onboarding updates, or team strategy.
- Share anonymised quotes in HR reports, as real voices carry more weight than percentages.
Tip: If multiple people name the same manager or process as an issue, you have to believe them. Then act.
Signs your offboarding isn’t working
If these indicators pop up regularly, it’s time to fix your process:
- Employees are surprised or confused about their final pay.
- Managers feel unsupported during resignations.
- Equipment is returned late or not at all.
- HR is chasing teams for basic steps weeks after the employee’s last day.
- Exit interviews feel shallow or scripted — or aren’t happening at all.
Tip: Don’t wait for a formal complaint to redo your offboarding flow. Be proactive, the signs show up long before the damage hits.
Common pitfalls and solutions
Offboarding isn’t complicated – until it is. These are the pitfalls that don’t show up with a bright neon sign, but happen all the time:
Pitfall #1: Nobody owns the process
The employee resigns, and suddenly everyone is very busy with something else. HR thinks the manager is handling it, the manager assumes HR is. IT isn’t looped in. Deadlines get missed.
How to avoid this:
- Create a simple offboarding checklist with owners. Make it clear who’s responsible for communication, exit interviews, tech recovery, payroll wrap-up. Even better: assign one offboarding coordinator per exit.
Pitfall #2: The exit interview is just a formality
The manager rushes through it or, even worse, skips it. No trust, no useful data, no improvement. Or the form is filled, saved, and never read again.
How to avoid this:
- Train your offboarding leads to ask open questions and actually listen. Use a consistent structure and feed insights back into onboarding, leadership development, and engagement strategies. If the feedback is tough, even better as that’s where the improvement and growth is.
Pitfall #3: No one says thank you
The employee leaves quietly, leaving them with no acknowledgement and no appreciation. Especially in involuntary exits, silence feels cold and disrespectful.
How to avoid this:
- Even if the relationship was rocky, say thank you. Send a final email. Write a short reference letter. Let them know their contributions mattered. Offboarding is your last chance to be remembered well..
Pitfall #4: Systems access is forgotten (or delayed)
Weeks later, someone notices the ex-employee still has access to email, Slack, or internal files. It’s not just a mistake, it’s a data and security risk.
How to avoid this:
- Loop in IT immediately after resignation is confirmed. Use an offboarding template with auto-reminders for system shutdowns. This includes not just hardware but cloud tools, drive folders, and email forwarding rules.
Pitfall #5: Offboarding is only reactive
Offboarding starts after someone quits and there’s no preparation, no succession plan, no knowledge transfer. Everything feels rushed and messy.
How to avoid this:
Build offboarding into workforce planning. Encourage employees to keep basic documentation of key tasks and processes before they resign. And once notice is given, make knowledge transfer a formal step.
Final Notes and additional tips
Done and dusted? Having a clear action plan with tips on hand you’re equipped to set a higher standard for your off-boarding process and the final stage of the employee journey now. However, I would like to highlight that even when the employee has departed the company, they still have influence on how other people perceive you as an employer. Make the last impression count and use the chance to strengthen your relationship.
Write a reference letter, even if it’s not required
It doesn’t have to be glowing. It just has to be fair, accurate, and respectful. A short summary of tasks, responsibilities, and soft skills shows professionalism and leaves the door open for future collaboration or even rehire.
Tip: Keep a template on file to make this easier. Bonus points if you include a sentence about how they contributed to the team.
Don’t bad-mouth employees after they leave
It’s tempting, especially after a tense exit, but avoid it at all costs. How you talk about ex-employees says more about your company than it does about them.
Tip: If there’s serious conflict, document it. Don’t vent it.
Say thank you
Even if it didn’t end on perfect terms, they gave their time to your company. A short, sincere thank you in person, in an email, or at a farewell gathering shows leadership maturity and are signs for a respectful workplace.
Tip: A culture of gratitude starts with how people leave. Don’t miss that final moment.
Don’t disappear after the last day
A quick follow-up, e.g. to confirm pay has transferred or to share a final document, builds trust. And it makes sure their last memory of your company isn’t a cold silence.
Tip: A short email two weeks later can help tie up loose ends and leave the door open for future opportunities.
Debrief internally, not just with the leaver
After the exit, check in with the team. How did the process feel? What worked, what didn’t? Use offboarding to strengthen your retention strategy, not just your exit one.
Tip: If you’re hearing “We didn’t know they were leaving,” your communication needs some major improvement, not just your process documentation.
In a nutshell:
Offboarding is your last chance to show employees (and yes, everyone is watching) what kind of employer you really are. Get it right, and you’re not just ending a chapter. You’re reinforcing your values, protecting your brand, and creating advocates long after they left.
