Introduction
Offboarding an employee is a critical process that ensures a smooth transition when someone leaves your company. Whether due to resignation, termination, or retirement, it's crucial to handle the departure professionally and efficiently to protect your company's interests and maintain a positive relationship with the departing employee. This guide will walk you through the essential steps to offboard an employee, covering everything from revoking access to company resources to ensuring proper documentation and compliance with legal requirements.
Which offboarding options are available?
When it is necessary to organise an employee's exit from the company, it is easy to follow a step-by-step process on Ledgy.
There are two ways to begin the offboarding process for stakeholders:
Option 1: In bulk
Within the Stakeholders page, click the Offboard button at the top of the page.
Within the offboarding pop-up, you can choose to add more than one stakeholder from the drop-down:
Add the Termination date & Effective vesting date (if applicable).
Note: If an Effective vesting date is added, the amount of grants to terminate will be calculated based on this date. If left empty, the effective vesting date will be the termination date
(Optional) Toggling the Allow exercising button expands the menu so the collaborator can set the exercise window length.
(Optional) Stakeholders can optionally be notified of their exercise window by toggling on Notify affected stakeholders. The stakeholders will be notified via email on the day the exercise window opens.
Once 'Offboard' is entered and the workflow completed, any stakeholders affected will have a Termination transaction attached to them for the respective dates within Ownership > Transactions. This can be edited and changed retrospectively if necessary.
Important: In the event, a stakeholder is offboarded but still holds shares in the company, it is recommended that the email address be changed from work to personal, and then they are re-invited to the platform with said email. This ensures the cap table remains accurate, the stakeholder retains their access for transparency, and they are still able to receive any relevant communications in the future.
Option 2: Individual
Go to Stakeholders, and using the search bar on the top-right of the grid, enter the name of your leaver. Find the three-dot button on the stakeholder and choose Offboard stakeholder.
Within the offboarding pop-up, choose the Termination date & Effective vesting date (if applicable).
Note 1: If you have connected your HRIS to Ledgy, the Termination date will be automatically set based on your HRIS information.
Note 2: If an Effective vesting date is added, the amount of grants to terminate will be calculated based on this date. If left empty, the effective vesting date will be the termination date
(Optional) Define which group the stakeholder should be assigned to after offboarding.
(Optional) Toggling the Allow exercising button expands the menu so the collaborator can set the exercise window length.
(Optional) Stakeholders can optionally be notified of their exercise window by toggling on Notify affected stakeholders. The stakeholders will be notified via email on the day the exercise window opens.
If the Re-invite stakeholder via email toggle is off, stakeholder access will be revoked upon offboarding, and they will not be re-invited. If the Re-invite stakeholder via email toggle is on, the stakeholder will be re-invited. However, if the user account email is the same as the re-invitation email, the stakeholder will retain access and not be re-invited.
Note: If the offboarded stakeholder's stakeholder profile contains a personal email, the system will automatically pull the information into the field.
Define whether or not fractions of the unvested grants should be terminated. You can chose to Select all unvested which would automatically add all the unvested amount to terminate.
Once you click 'Offboard' and the workflow completed, any stakeholders affected will have a Termination transaction attached to them for the respective dates within Ownership > Transactions. This can be edited and changed retrospectively if necessary.
