Answer from Kim, SPHR, SHRM-SCP:
Terminations involving remote employees function much the same as those in a physical worksite, but there are some things to keep in mind:
If the employee works in a different state, you’ll need to follow that state’s laws regarding termination procedures, paperwork, and final paychecks. Look these up on the platform ahead of time. You don’t want to miss any deadlines.
Coordinate with IT so they are prepared to remotely revoke the employee’s access to company systems immediately upon termination.
Have a clear process in place for the employee to return any company-owned computers, monitors, phone systems, etc. and plan to pay for shipping. Go over the process at the termination meeting.
Don’t make deductions from the final paycheck because the employee hasn’t returned company property or has returned things damaged unless you’re sure it’s legal in the state where they work and that you’ve complied with any related requirements.
As with most terminations, be sure to have documentation of behavior and performance issues, conversations you had, disciplinary actions you took, and warnings to the employee about the consequences if they failed to improve. This documentation may be helpful if the termination is ever challenged.