Losing a team member is one of the hardest challenges a workplace can face. It brings grief, shock, and upheaval, and for some, guilt or unanswered questions. There is no single “right” way to respond; everyone will experience it uniquely, but the way that leaders approach it can deeply affect employees, clients, and the culture of the business moving forward.
Supporting your team in these moments means holding space for grief, making thoughtful decisions about how to acknowledge the loss, and navigating the operational and legal tasks that must also be addressed.
Every Loss is Different
The impact of a workplace death will vary depending on the circumstances, the individual’s role, and the unique relationships. Some employees may want to talk about the person and share memories. Others may prefer to process quietly. Some may even appear unaffected, despite having been close. All responses are valid.
As a leader, the key is to acknowledge the loss openly and create options for employees to grieve in their own way.
What to Do First
When you first learn of the death:
- Share the news with staff as quickly and sensitively as possible. Speak directly with those who worked closest to the person before making a general announcement.
- Allow flexibility, let employees go home if they need to, arrange transport if someone is too distressed to drive, or provide a quiet space for people to gather.
- Encourage staff to access support. If you have an Employee Assistance Program (EAP), actively promote it. If not, consider arranging short-term counselling or sharing helpline contacts.
Griefline: 1300 845 745
Lifeline: 13 11 14
Beyond Blue: 1300 224 636
Sometimes, the simple act of making support visible is enough to help people feel less alone.
Acknowledging the Loss
Small gestures matter. They can include:
- Offering condolences to the family on behalf of the business.
- Providing flowers or a card from the team.
- Creating a tribute, such as a memory wall, a team gathering, or a donation in the person’s honour, if employees wish to participate.
These steps validate grief and create opportunities for collective healing. Involve team members who would like to help in the decision-making process on how to approach this.
Funeral and Memorial Considerations
The day of the funeral or memorial can be particularly challenging for a business, especially a small one. Balancing financial realities with the need to support employees requires careful thought.
Questions to consider include:
- Who will want to attend? Is it most of your team or only a small group?
- Can you close for the day? For some businesses, closing is the most compassionate option. For others, it may not be financially viable.
- Can you still operate? If everyone does not wish to attend, consider whether you can remain open with reduced staff.
- Leave and payment. Will you cover the time as paid leave, or will employees need to use their own leave entitlements? Be clear about your approach and apply it consistently.
- Transport. If the funeral is local, organising shared transport (like a minibus or carpooling) can be supportive. If it’s several hours away, consider whether attending is realistic for the whole team, or whether a smaller group could represent the business.
- Fairness. Whatever decision you make, communicate it transparently so employees understand the balance between supporting people and ensuring the business survives.
There is no one-size-fits-all answer. What matters most is showing genuine consideration for employees’ needs, while being honest about operational constraints.
Family Communication
It’s also important to decide who in the business will act as the single point of contact with the family. This avoids confusion, mixed messages, or overwhelming the family with multiple calls.
- The contact might be the employee’s direct manager, a senior leader, or someone who had a strong personal relationship with them.
- Whoever it is, agree as a leadership team and communicate the decision clearly to staff.
- That person should coordinate condolences, funeral details, and practical matters such as returning belongings to ensure consistency and respect.
Having one voice shows professionalism and avoids adding stress for the family during a difficult time.
Practical and Legal Considerations
Alongside the emotional support, there are also operational matters that need attention. These tasks can feel uncomfortable, but handling them with care shows respect for the individual and their family.
Some key steps include:
- Redirecting communication: update voicemail and email with appropriate redirection, ideally within a few days.
- Finalising pay: employees are entitled to payment for hours worked, plus accrued entitlements such as annual leave and (if applicable) pro-rata long service leave. Payments must be made to the executor of the estate; you may need a death certificate or legal direction before releasing funds.
- Belongings: arrange with the family to collect or deliver the employee’s personal items from the workplace.
- Legal obligations: under workplace health and safety laws, employers must ensure psychological safety. Handling the process with transparency and support reduces the risk of further harm.
When in doubt about final pay, tax deductions, or legal processes, seek professional HR or legal advice to ensure compliance and protect both the family and the business.
Balancing Grief and Work
It’s natural for work to feel less important in the days and weeks following a death. However, tasks will need to be redistributed. Approach this carefully:
- Consult with colleagues and managers about urgent matters and major projects.
- Involve employees in planning how to reassign work.
- If recruitment is necessary, consider the timing. Announcing a replacement too quickly can feel insensitive.
Finding the right balance between continuity and compassion takes care and communication.
Supporting Managers Too
Don’t forget that leaders are human as well. A manager may feel guilt or grief tied to the employee’s death, especially if it was sudden or linked to mental health. Support them as you would any other staff member, and encourage them to also access available resources.
Key Things to Remember
- Every situation is unique; there is no one “right” way to respond.
- Communicate early, clearly, and sensitively.
- Be transparent about business realities when it comes to funerals and time off.
- Appoint one person as the contact for the family.
- Offer employees flexibility in how they grieve.
- Honour the person through gestures of respect and remembrance.
- Manage operational and legal requirements with empathy.
- Support managers as well as staff.
Final Thoughts
There’s no easy path through the loss of an employee. But with empathy, transparency, and thoughtful planning, you can help your team navigate the hardest of times while also meeting the operational and legal responsibilities of running a business.
By leading with compassion, you remind your employees that people matter most, not just for the work they do, but for the role they play in your workplace community.
How We Can Help
At Strawberry Seed Consulting, we know that losing a team member is one of the hardest challenges a workplace can face. There’s the human side, grief, shock, and supporting colleagues, alongside the practical and legal responsibilities that can feel overwhelming for leaders.
Our team can support your business to:
- Guide leaders in handling communication with staff, clients, and the employee’s family with clarity and care.
- Provide advice on entitlements, legal obligations, and the operational steps that follow a loss.
- Support managers in balancing compassion with the need to keep business moving.
- Develop proactive wellbeing strategies so your workplace feels supported not just in times of crisis, but every day.
We also offer Mental Health First Aid training, giving your team the skills to recognise when someone is struggling and how to respond. And because strong leadership is critical during difficult times, our public and in-house leadership programs, both online and in person, give managers the confidence to lead with empathy, resilience, and clarity.
If you’re facing the loss of an employee or want to be prepared with strategies and resources, we’re here to support you.
📞 (03) 4216 5200
✉️ info@strawberryseed.com.au
🌐 www.strawberryseed.com.au
