Terminations can be performed at any point in your payroll processing cycle. For example, if someone will only be terminated in the next period, you can already set their termination date in the current period. The system will then keep creating payslips for the employee until the termination date is reached.
We do, however, strongly recommend that you set the termination date before finalising the employee’s last payslip as it may have implications for certain calculations. Once this last payslip is finalised, the employee will move to the inactive list.
You can record an employee’s termination as follows:
- On their profile, click on End Service
- Select the date of their Last Day of Service
- Select the Reason for Termination, if appropriate
Managing an Employee’s End of Service
Once an employee’s service has been ended, you can perform certain actions to manage this. You will need to click on the Inactive link at the bottom of the Employees list in order to get to a terminated employee’s profile. From their profile, click on Manage End of Service and then select the relevant option:
Cancel / Undo Termination
This option should be used in cases where the employee’s service did not in fact end and the termination was recorded in error. Undoing an employee’s termination removes all records of the termination and allows you to continue processing payslips for them as usual.
Please do not use this option in cases where the employee returns to work after a break in service – this should be recorded using the re-statement option discussed further on.
A termination can only be undone if the employee has not been re-instated and only the latest termination can be undone.
Update Termination Reason / Date
This allows you to edit the employee’s date of termination and / or the reason for the termination.
As with undoing the termination, this can only be done for the latest termination and only in cases where the employee has not been re-instated.
Re-instate the Employee
Use this option if an employee was in fact previously terminated, but is now being employed again. The system will record a new service period for the employee and will ask you for a new appointment date.
This option should also be used for employees returning from long-term absences during which they were still employed. In these cases, a new service period will not be created.
In each of the above instances, the employee’s next regular payslip will be generated for the period in which the reinstatement date falls.
You may be required to make certain additional / special payments to the employee upon / after their termination. These are discussed in detail in the following section: