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  • Writer's picturePeter Lamont, Esq.

Navigating Employee Departures: A Primer for Small Business Owners

Employee turnover is an inevitable part of business. Whether an employee is leaving for a new opportunity, retiring, or for other reasons, their departure can significantly impact your company. Knowing how to manage this transition effectively is crucial for maintaining business continuity, safeguarding company assets, and preserving professional relationships. Here's a comprehensive guide on what to do when an employee leaves your company.

Employee Departures | Business Lawyer  Peter J. Lamont, Esq.

Conducting a Thorough Exit Interview

One of the first actions to take when an employee announces their departure is to schedule an exit interview. This meeting serves multiple purposes. It provides an opportunity to discuss the reasons for the departure, which can offer valuable insights into your company's work environment and potential areas for improvement. The exit interview also allows you to clarify any remaining obligations the employee may have, such as completing pending projects or transitioning responsibilities to other team members. Additionally, this is an opportune moment for the departing employee to ask any questions they may have, reducing the likelihood of misunderstandings that could lead to complications down the line.

Retrieving Company Property and Securing Data

After the exit interview, collecting all company property from the departing employee is imperative. This goes beyond the obvious items like keys, badges, and company-issued laptops or mobile devices. You should also ensure the return of any documents, electronic files, and other materials containing sensitive or proprietary information. The goal is to mitigate the risk of unauthorized dissemination of confidential data or intellectual property theft. Follow a checklist and document the returned items to avoid any disputes later.

Notifying Clients and Vendors

If the departing employee had a role that involved significant interactions with clients or vendors, it's crucial to notify these parties about the change. This is especially important for sales, client management, or vendor relations roles. Timely communication allows you to manage expectations and maintain the professional relationships that the departing employee may have cultivated. It also offers a chance to introduce clients and vendors to another point of contact within the company, ensuring a seamless transition and continuity in business operations.

Monitoring Post-Departure Activities

While you may no longer have a formal relationship with the departing employee, knowing their professional activities in the weeks and months following their exit is wise. Platforms like LinkedIn can be useful for this purpose. Keeping an eye on their career moves can offer insights into your industry and help you assess the impact, if any, on your business. If you notice any activities that could potentially harm your company, consult your legal team for advice on how to proceed.

Additional Considerations

Beyond these steps, there are other general best practices to consider. For instance, consulting legal counsel during the employee departure process can be beneficial. Employment laws and regulations can vary by jurisdiction and may be subject to change. Having the guidance of an experienced attorney can help ensure that you're following all legal requirements and best practices during the transition. It's also advisable to regularly review and update your internal procedures for employee departures to reflect any changes in business strategy, technology, or legislation that could impact your approach.


Managing an employee's departure is a multifaceted process that requires careful planning and execution. By conducting a thorough exit interview, securing company property, notifying key external contacts, and monitoring post-departure activities, you can mitigate risks and ensure a smooth transition. Taking these steps and seeking expert legal advice will help you navigate the complexities of employee turnover while safeguarding your business interests.

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About Peter Lamont, Esq.

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