Employee termination | Xero Guide

How it works

Employment Hero is the source of truth for your company settings, payroll settings, and employee file data. For you to terminate an employee correctly with a Xero connected system, you will need to follow a specific process. This process will make sure your employees receive their correct termination pay, and their off-boarding from Employment Hero is smooth and trouble-free.


HR Plan:   Free   Standard   Premium   Platinum
  User Access:   Employee         Manager         Admin      

  We base the default access level on a per user basis and whether they have  view,  edit and  delete access and excluding any changes made via our Custom Security feature.

What you need to do

Depending on when the termination date is, an administrator can either:

  • Terminate an employee on Xero first, then on the Employment Hero platform; or
  • Enter the future termination date on the Employment Hero platform


With the payroll cut off date feature, you can now:

  • Enter the future termination date in the Employment Hero platform first.
  • Then list the payroll cut off date as the date after when the termination pay will be processed.

This means you do not have to terminate the employee first in Xero then have to wait for the termination pay to be finalised. You can terminate them in the Employment Hero platform first, but only if the termination date is in the future.

Select the tab corresponding to the employee's termination date: 

In the future Today or in the past
Terminating the employee in the Employment Hero platform
  1. Click the People menu.
  2. Click the Employees List submenu.
  3. Click the Actions button for the employee to be terminated.
  4. Click Offboard employee.
  5. Input the following details:
    • Termination date
    • Termination type
    • Employee acess
    • Payroll cut off date


      For Payroll cut off date, select Custom date. Then, choose the day after when the termination pay will be processed.

  6. Click the Terminate button.

Author recommended

So you have now processed a termination and you are now wondering, what next can I do. There are two recommendations I would make on this front and they are:

  • Xero guide: Leave balance visibility This guide walks you through how to customise your employee's leave balance visibility in your Employment Hero platform.
  • Common Xerp Import Conflicts This section contains a range of error resolution articles that cover common import conflicts our clients run into when syncing their Xero data.
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