Terminations are one of the highest-risk moments in the employment relationship. Most wrongful-termination claims aren't the result of an employer trying to break the law — they come from inconsistent documentation, unclear communication, or skipped steps. This checklist helps HR teams and small-business owners reduce that risk while treating departing employees fairly.
Before the termination
- Review the personnel file: performance reviews, prior warnings, and any complaints involving this employee.
- Confirm the stated reason is documented and consistent with prior communications to the employee.
- Check whether the employee recently engaged in a protected activity (complaint, leave request, accommodation request) — and if so, get a second opinion before proceeding.
- Compare how similar situations were handled for other employees to check for consistency.
- Confirm final pay obligations for your state, including any accrued PTO payout requirements.
During the termination meeting
- Keep the meeting brief, respectful, and factual.
- Have a witness present (typically an HR representative).
- Provide required notices (COBRA, state-specific termination notices, final pay information).
- Avoid overexplaining or debating the decision in the moment.
After the termination
- Process final pay according to your state's deadline requirements.
- Document the meeting: date, attendees, and a summary of what was communicated.
- Coordinate a consistent, neutral reference policy across the organization.
- Consider offering outplacement support — it can reduce claims and protect your employer brand.
- Secure company property and revoke system access promptly.
Tools that help
Modern HR platforms like BambooHR and Gusto can standardize your offboarding checklist, store documentation centrally, and flag compliance deadlines automatically — reducing the chance that a step gets missed under pressure.
Key takeaway
Most wrongful-termination exposure comes from inconsistency and poor documentation, not the decision itself. A standardized, documented process protects both the business and the departing employee.
Recommended resources
HR compliance handbook for managers
A practical reference for building termination and offboarding policies.
Amazon →Employee handbook template & guide
Helps ensure your policies are clear and consistently applied.
Amazon →Difficult conversations at work book
Guidance for handling termination meetings professionally.
Amazon →Frequently Asked Questions
Yes — even small employers benefit from consistent documentation, since inconsistency (not company size) is what typically drives legal risk.
Not necessarily, but a documented, consistent policy on when and how severance is offered reduces the risk of claims based on unequal treatment.