There are two ways you can terminate an employee:
- Within the employee file
- Within a pay run
Terminating an Employee within the Employee File
The first, and simplest way is to open up the employee file, click on the 'Details' section and down the bottom of the page you’ll see a 'Terminate Employee' button:
Clicking this button simply marks the employee as inactive and will no longer be eligible for pay runs.
NB. Please note that terminating an employee by using the Terminate Employee button at the bottom of the employee record/details page will not process a termination payment and the employee will not be notified. Similarly, if you reactivate an employee by using that option at the bottom of the details page of the employee record (of a terminated employee) the employee will not be notified.
Terminating an employee via the pay run
To do this, click on the employee within the pay run and then from the blue 'Actions' button select Terminate Employee:
A pop up will appear as follows:
Enter the employee's termination date and then click on 'Save'.
N.B. If there are any unfinalised pay run for the employee, you will not be able to terminate until those pay runs have been finalised.
The employee's record will turn pink (as an indicator it is in termination mode) and will display calculated earnings and any accrued leave to be paid out as part of the termination pay.
With regards to the section on 'Leave Taken':
- Any leave category setup to be paid out on termination will automatically be calculated as part of the termination pay. If you do not wish for this to occur, deselect the 'Pay out' option;
- If you want to pay out a balance for an associated leave category that does not have the 'Pay out' option automatically selected, you will need to manually select this option;
- The 'Pay out' option will be deselected by default if the employee has not been employed for at least 3 months
- Any leave categories setup to not accrue automatically will not appear in this section
- Leave paid out will be paid from the termination date i.e. if an employee is terminated on Friday 15th of the month and they are being paid out 5 days leave, the leave will cover Monday 18th - Friday 22nd of the month
- If the employee works part time but doesn't have advanced work hours set up, the system will assume the work days are Mon - Fri. If the employee works 3 days a week the system will pay leave based on work days Mon - Wed
- The 'i' icon displayed opens a context panel which shows how the leave payout was calculated
N.B. If the employee is set up to be paid default standard hours each pay and is terminated mid-pay period, the employee's hours will automatically be re-calculated on a pro-rata basis. We strongly suggest you double check these to ensure they are correct.
If you wish to make any lump sum payments as part of the termination select the 'Lump sum payments' checkbox to enable the lump sum section. Add amounts against the relevant payment type, the 'tax free component' and 'taxable component' values will be reported as income and the 'tax withheld' values will be reported as withholding tax to the IRAS.
The 'Amended' column can be used if an employee was terminated and the incorrect values were paid on the lump sum payments. The employee will already be terminated so will need to be re-activated, before they can be included in any future pay runs. Once the employee is active and included in the pay run, you will need to terminate them again, using the original termination date. Add in the amended lump sum payment values and select the 'Amended' checkbox. The amended amount is the additional payment being made. This will be added to the original lump sum payment total.
Once you have finalised the pay run, this employee will no longer be active or eligible to be included in future pay runs and the employee line will be highlighted red.
Cancelling a Termination
If you want to cancel the termination, click on the blue 'Actions' box within the employee's pay details and then click on 'Cancel Termination':
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