Employee Offboarding Operating Procedure

Effective Date: Jan. 13, 2026

Human Resources Employee Offboarding Operating Procedure

Responsible Office: System Office of Human Resources

1. Purpose

The purpose of this procedure is to establish a consistent and compliant process for separating employees from employment within the Arkansas State University System (ASU System). This includes voluntary resignations, retirements, terminations, and end-of-appointment separations. The goal is to ensure a smooth transition for both the employee and the institution while protecting institutional assets, maintaining compliance, and providing timely final compensation and benefit closure.

2. Scope

This procedure applies to all full-time and part-time employees across all ASU System institutions, including faculty, staff, and other personnel.

3. Responsibilities

• Supervisors/Department Heads: Notify Human Resources as soon as an employee’s separation is known, initiate the employee separation checklist, and ensure all university property is returned.
• Human Resources (HR): Process separation paperwork, ensure benefit and payroll compliance, and notify relevant departments of the employee’s termination date.
• Information Technology (IT): Secure and deactivate system access and accounts according to established timelines.
• Payroll: Process final pay in accordance with ASU System and State of Arkansas guidelines.
• Employee: Provide written notice of separation from the institution. Complete exit interview, return all property, and provide updated contact information for final communication and tax purposes.

4. Notification of Separation

• Employees are expected to submit a written resignation or retirement notice to their supervisor and Human Resources at least two weeks in advance of leaving the institution. It is expected that the employee will work out the final two weeks of employment.  Failure to do so may result in the employee becoming ineligible for rehire with the institution.
• Supervisors must forward the notice to HR immediately upon receipt.
• HR will confirm the effective date of separation and coordinate with Payroll, IT, and other relevant offices.

5. Final Pay and Leave Payout

• Final Payout: Employees will receive their final paycheck within seven (7) calendar days of their separation date.
• Annual Leave: Unused annual leave will be paid out in accordance with Arkansas State law and ASU System policy.
• Sick Leave: Employees who retire from the ASU System are eligible for sick leave payout per the State of Arkansas guidelines. Henderson State University employees are subject to the HSU Campus Operating Procedure on Health Benefits, Basic Life Insurance, and Miscellaneous Benefits Upon Retirement.
• Compensatory Time: Any earned compensatory time will be paid in accordance with the Fair Labor Standards Act (FLSA) and university policy.

6. Benefits and Insurance

• Benefits Coverage: Health, dental, vision, and other insurance benefits will continue through the end of the month in which the employee’s resignation or termination becomes effective.
• COBRA: Eligible employees may continue certain benefits under COBRA. HR will provide information regarding COBRA rights and enrollment procedures.
• Retirement Accounts: Employees are responsible for contacting their retirement provider (APERS, ATRS, TIAA) to discuss options related to their retirement funds.

7. Return of University Property

Before the last day of employment, employees must return all university property, including but not limited to:

• ID badges, keys, access cards
• University-issued laptops, mobile devices, and equipment
• Purchasing cards and travel cards
• Library materials, tools, uniforms, or other issued assets

Supervisors are responsible for verifying the return of items via the Employee Separation Checklist and providing that list to the institution Human Resource Department.

8. System and Email Access

• Access to university email, ERP systems (e.g., Banner), and other university platforms will be disabled at the close of business on the employee’s final working day.
• Supervisors may request limited continued access for transitional purposes with the approval of the institution’s HR[DW1]  and IT departments.

9. Exit Interview

Human Resources at the institution will offer an exit interview to collect feedback, discuss benefits continuation, and ensure completion of required forms. Feedback from exit interviews may be aggregated to inform retention and process improvement initiatives.

10. Record Retention

HR at the institution will retain separation documentation, exit interviews, and final payroll records in the employee’s personnel file and in accordance with state records retention schedules and ASU System policy.

11. Compliance

This procedure aligns with:

• ASU System Policy Manual
• Federal and State Employment Laws
• Fair Labor Standards Act (FLSA)
• Affordable Care Act (ACA)

12. Related Documents

• ASU System Employee Separation Checklist
• ASU System Benefits Termination Form
• ASU System Policy Manual – Leave and Separation Policies
• HSU Campus Operating Procedure on Health Benefits, Basic Life Insurance, and Miscellaneous Benefits Upon Retirement
• State of Arkansas Sick Leave Payout Guidelines

To download the Employee Offboarding Checklist for use by supervisors, human resource, and departmental administrators, click here.