This workflow will help you process the termination of an employee, consultant, or other stakeholder from your company. Shoobx will guide you through the details of the separation and handle equity-related matters (including the repurchase of stock, if applicable).
Note that this workflow can be used for any type of termination, whether the team member is leaving on their own accord or if the company is initiating the separation.
The 'Terminate an Employee/Consultant or Other Stakeholder' workflow, listed under Human Resources in the list of workflows, will walk you through the process of documenting an employee's separation from your company. This workflow will give you the ability to upload a resignation letter, termination notice, and/or separation agreement. The workflow does not generate these documents.
At the start of the workflow, you will be able to select the appropriate stakeholder:
On the next screen, you will be able to input the details of the separation, including the option to upload a resignation letter (if you have received one). You also have the option to upload a formal separation agreement (if applicable). You can also defer the upload of the Separation Agreement document and re-upload it once the employee has signed it.
You may upload any other documentation related to the separation under the "Other Evidence of Termination" box. If you do not upload any documents related to the separation during this workflow, Shoobx will generate a simple Termination Memo, which will not be shared with your departing team member and exists for internal documentation purposes only.
Note that if the individual being terminated has multiple roles in Shoobx (e.g. they are listed as both an employee and a contractor, or if they are currently an intern but they have an open offer for a full time position), you will be presented with a list of those roles, and you'll be able to select which of them you'd like to terminate.
The Shoobx termination workflow does not send any notifications or documents to your departing team member, and the documents you upload will not be visible to them.
What happens to their Shoobx Access?
Once this workflow is complete, any access the employee may have had to company documentation will be removed. The employee retains access to their own Shoobx dashboard and their employment documentation. The employee will therefore still be listed in the User Directory.
What happens to their shares and/or options?
Shoobx will check for shares that are unvested shares available for repurchase, and will summarize those findings just past the Checkpoint page, which is shown below. The company will have the option to repurchase any unvested shares. If the shares were granted under your Stock Incentive Plan (either generative or upload), you can choose to have Shoobx generate a Repurchase Agreement for you, which you can fully execute in Shoobx. If the shares were not granted under your Stock Incentive Plan, you will need to upload a Repurchase Agreement that has already been executed during the share repurchasing part of this workflow.
Shoobx will also check for options that are vested, such that an employee could have the right to exercise them after their separation. In these cases, you will be asked to confirm the post-termination exercise window for their grant(s). If the employee does not exercise their options during that timeframe, their options will be returned to the pool. Additionally, any options that are unvested will immediately be returned to the pool.
Frequently Asked Questions
When Should I Run the Termination Workflow in Shoobx?
It's time to run the termination workflow in Shoobx when you know someone is leaving the company, and you know their exact separation date.
Does it Make a Difference if the Person Left of Their Own Choice, or if They Were Fired?
The workflow is equally applicable regardless of the reason they are leaving the company. Generally, if someone is leaving on good terms (whether they are leaving because they want to or because they were not a good fit), their termination will be classified as being "without cause".
Do I have to run the termination workflow for people that had a clear end date in their Shoobx offer letter or consulting agreement?
Yes. Even if the person has a clear end date that is stated in their offer letter or consulting agreement (i.e. an intern), they still need to be terminated in Shoobx.
When does the termination workflow generate a Repurchase Agreement?
If the unvested shares to be repurchased were shares granted outside of the stock incentive plan, Shoobx WILL NOT generate a repurchase agreement.
If the unvested shares to be repurchased were shares granted inside of the stock incentive plan, Shoobx WILL generate a repurchase agreement.
If you have any questions about this, please reach out to email@example.com!
Sample scenarios and screenshots are for illustrative purposes only.
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