HR glossary
Offboarding
Offboarding is the process of handling an employee’s departure, from access removal and handover to the final paycheck.
Offboarding is onboarding in reverse. When someone leaves, whether they resigned, retired or were let go, there’s a list of things to handle.
Collect equipment. Remove access to every system on the same day, including the tools nobody remembers. Hand over their work and documents. Process the final paycheck and explain what happens to benefits.
Do an exit interview if they’re willing. A respectful exit matters. Former employees write reviews, refer candidates and sometimes come back.
Where the rules differ
Final pay depends on where the person works. Federal law doesn’t require employers to hand over the final paycheck immediately, but some states do1. Deadlines often differ for a resignation and a termination, so check the state rule before the last day.
Health coverage has its own clock. COBRA applies to group health plans of employers with 20 or more employees in the prior year, and the person can be charged up to 102% of the plan’s cost2. The employer must notify the plan within 30 days of the termination, the plan sends an election notice within 14 days, and the former employee gets at least 60 days to decide. Coverage after a job loss can last up to 18 months3. Many states have their own continuation laws for smaller employers.
Shuffl · HR by the numbers
The COBRA notice timeline after a job ends
The COBRA notice timeline after a job ends. 1. Employer notifies the plan: Within 30 days of the termination or cut in hours. 2. Plan sends the election notice: Within 14 days of hearing from the employer. 3. Former employee decides: At least 60 days to elect coverage. 4. Coverage continues: Up to 18 months after a termination or reduction in hours. Source: US Department of Labor, Employee Benefits Security Administration, Current guidance.
An example
A process engineer at a 250-person manufacturer resigns with two weeks’ notice. On day one of the notice period, HR opens a checklist shared with IT, payroll and his manager. The manager lists his open projects and names who takes each one. IT pulls a list of every system he has logged into in the last 90 days, including two supplier portals nobody had written down.
On his last afternoon he returns his laptop and badge, and IT turns off all access by 5 p.m. Payroll includes his unused vacation if state law or company policy requires it, and HR emails him the benefits end date and COBRA information. HR sends him the exit survey a week later.
What to check before the last day
Most offboarding gaps show up weeks later, when someone notices a login still works or a client email went unanswered.
- Every system with a login, including shared accounts and vendor portals. Change shared passwords.
- Company equipment and any files on personal devices.
- Final pay date, unused vacation payout and expense claims under the state’s rules.
- Benefits end date and COBRA or state continuation notice.
- Email forwarding or an auto-reply, and who takes over client contacts.
- Whether they’re eligible for rehire, recorded while the facts are fresh.
Common questions
- What is the most important step in offboarding?
- Revoking access on time. A former employee with a working login is a security risk.
- When is a final paycheck due?
- It depends on the state or country. Some US states require the final paycheck on the last day, especially after a termination.
Sources
Read on . Numbers change as new studies come out, so check the source before you quote it.
- US Department of Labor, Last Paycheck, Current guidance. Federal regulator guidance on final pay.
- US Department of Labor, Continuation of Health Coverage (COBRA), Current guidance. Federal regulator overview of COBRA.
- US Department of Labor, Employee Benefits Security Administration, An Employer’s Guide to Group Health Continuation Coverage Under COBRA, Current guidance. Federal regulator guide to COBRA notice and election rules.