Review the following checklist of items related to the pending termination.
This checklist is designed to identify many issues involved in concluding an individual’s employment with the HOA.
It is assumed that a decision to terminate has been made.
Agreements
- Review existing employment agreement and HOA employee policies (if any)
- Consider a separation agreement
- If no separation agreement is to be prepared, consider a release agreement
- If no separation or release agreement, consider a termination letter
- Is occupancy of a unit in the community provided? If so, review the basis for the employee’s possession
Expense Reports
- Obtain executed copy of Employee’s final expense report and place in Employee’s file
Computer-related issues to address
- Any Association information located on employee’s home/personal computers?
- Lock access to system and backup data prior to the notification meeting
- Remove access to external Association databases and/or remote access software
- Review and change all passwords prior to or during the notification meeting (i.e., access to computer system, online banking or other remote access financial services, etc.)
- Transfer/cancel employee’s e-mail account
- Set automatic e-mail notification to alert sender that employee is no longer employed
Association property to be returned
- Mobile phone
- Card Key
- Other Keys
- Association Car, truck, etc.
- Parking Pass
- Credit Cards
- Telephone Calling Cards
- Home Computer
- Laptop
- Printer/Copier/Scanner/Fax Machine
- Marketing Materials
- Other Files
- Association Phone List
- Employee Contact List
- Employee Handbook
- Identification Badges
- Consider procedures to be used to quickly facilitate return of Association property and return of employee’s personal property with dignity
- Other items. Describe: ___________________________________________________
Compensation issues in connection with termination
- Wages
- Determine what “wages” are owed
- Consider past practices, verbal commitments, any written documents or e-mail correspondence, what is stated in the offer letter/employment agreement, Association policies or any handbook, etc.
- Determine when wages must be paid following termination – this as of the date of termination
- Determine if deductions are necessary for unpaid loans, wage overpayments, lost or stolen Association property and whether those deductions are allowed by law or by agreement
- Discontinue any automatic payroll deposits
- Vacation
- How much vacation has the employee earned?
- How much vacation has been used?
- Is the Association required to pay employee for accrued but unused vacation?
- What is the Association’s policy (handbook, offer letter, past practice, etc.)?
- What is required by the law? (Unless the Association has a written policy requiring forfeiture before the vacation time was earned or accrued, then unused vacation time must be paid no later than the next regularly scheduled pay date of the Association following termination).
Continued Health Insurance Coverage Notice
- If health insurance was provided:
- Coordinate preparation of COBRA notice or state law equivalent with health insurance provider
- Confirm that health insurance provider allows coverage through the end of the month of termination
- Confirm that health insurance provider allows employee to be continued under group plan if continued insurance coverage is to be offered in connection with termination
Employee Benefits
- Prepare information regarding rollover of any other employee benefits [401(k) plans and other benefit information]
- Notify carriers/providers of benefits of the termination
- Life/Disability Insurance — discontinue premium payments and notify carrier(s) of termination
- Determine if any action should be taken regarding any applicable medical reimbursement or dependent care reimbursement plan
Operational matters
- Consider whether it is appropriate to consult a public relations professional
- Remove employee from the Association’s website
- Remove person as contact for work orders, etc.
- Change employee’s voicemail message
- Establish a procedure for reviewing incoming e-mail and voicemail
- Prepare to notify employee’s contacts (i.e., customers, suppliers, etc.)
Banking, financial and signature Authority
- Contact bank and others, as applicable, to notify of change in signatory authority
- Consider whether any Board resolutions are necessary to grant authority to others (the HOA’s managing agent or any other employed personnel)
- Consider who is the trustee for any 401(k) or other benefit programs and notify appropriate parties if employee’s authority needs to be revoked
- Consider whether any creditors need to be notified
- Cancel any credit card account authorization and request balance and billing statement immediately to determine if improper charges have been made in the prior billing cycle
- Change passwords for online banking and other remote access financial services
Security Issues
- Consider whether employee could potentially be volatile and whether security should be called in advance
- Change locks on doors
- Change entry code on keypad locks
- Consider relocating petty cash
- Change passwords for online banking and other remote access financial services
Corporate Governance
- Does the employee need to resign as an officer or from the board or other positions?
Termination Meeting/Exit Interview
- Meet with the employee to provide termination notice and final pay check
- Discuss appropriate details regarding termination (effective date, business reasons for termination, pay and benefits after termination, if any, unemployment eligibility, etc.)
- Review separation, confidentiality, proprietary information agreement or termination letter
- Review notice to quit (to terminate the employee’s occupancy of any unit provided)
- Also have the notice to quit posted
- Have an affidavit of posting and of hand delivery prepared, signed and notarized
- Confirm employee’s address for future mailing of information
- Provide employee with a contact person and information for questions arising after the meeting
Association Records/Personnel File
- Place completed copy of signed separation agreement, release agreement or the termination letter in employee’s file
- Place completed checklist in Employee’s file
