Can I utilize Sharepoint 2007 for document based routing

I have been tasked with coming up with an efficient way to centralize documents for human resources purposes but also have a way to route the documents to specific departments within a school district. Here is an explanation: Right now when a teacher of staff member leaves, i.e. retires, quits, gets fired, etc, nobody for the most part is notified of this except for those directly involved. What the head of HR is looking for is a way to have some documents or forms that when a user leaves, these forms can be routed to specific departments within the district notifying people of this and informing them to update their contact lists or whatever they have. Is there a way I can leverage Sharepoint for something like this? Any other suggestions if not Sharepoint? Thank you very much!