Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What should be included in an employee's separation file?

1. Reports on severance

2. The rationale for removing someone

3. Exit interview form

4. Details on what one earned

The correct answer is: The rationale for removing someone

Including the rationale for removing someone in an employee's separation file is essential for several reasons. First and foremost, documentation of the rationale provides clarity and justification for the decision, helping to ensure that the termination process was fair, objective, and compliant with relevant laws and organizational policies. This is particularly important in the event of any future disputes or claims related to wrongful termination or discrimination. The rationale helps maintain a record of the circumstances surrounding the separation, which can be critical during any legal reviews or audits. Proper documentation also demonstrates that the organization took appropriate steps and followed its internal procedures in making the decision. In contrast, while exit interview forms, details on what one earned, and reports on severance are relevant to the separation process, they do not provide the foundational context and justification that the rationale for removal offers. Thus, having a clear, documented rationale is a best practice in HR to protect the organization and support transparent decision-making.