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.
Availability
| 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
Important
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:
- Click the People menu.
- Click the Employees List submenu.
- Click the Actions button for the employee to be terminated.
- Click Offboard employee.
- Input the following details:
- Termination date
- Termination type
- Employee acess
- Payroll cut off date
Important
For Payroll cut off date, select Custom date. Then, choose the day after when the termination pay will be processed.
- Click the Terminate button.
First, run a pay run as usual and within that pay run you can mark the relevant employees that need to receive a termination payment due to them leaving your organisation. The steps on how to undertake this are:
- Log in to your Xero platform.
- Click on the Payroll button.
- Click the Pay Employees button.
- Click the Add Pay Run button.
- Complete the Select a Pay Period drop-down.
- Click the Next button.
- Click on the employee's name who needs a final payment added
- Click the Set as Final Pay button.
- Review the following fields:
- Termination date.
- Voluntary cessation.
- Health.
- Deceased.
- Redundancy.
- Dismissal.
- Contract Cessation.
- Transfer.
- Reason for termination.
- Full pay period earnings.
- Select an example of a normal full pay period.
- Termination date.
- Click the Save button.
- Click the Save button.
- Click the Close button.
- Click the Post Pay Run button.
- Click the Yes button.
The next step is to import the pay run into Employment Hero. This import process happens automatically at set times, when the two platforms meet the right conditions. If you are processing the employee termination in one go though, it is best to import the pay run completed in step 1 manually. The steps on how to undertake this are:
- Log into your Employment Hero platform.
- Click the Settings menu.
- Click the Add-ons submenu.
- Click the Actions button.
- Click the Update button.
- Click the Update from Payroll button.
- Select the required pay slip and click the Import button.
Helpful Hint
The Payslips section will now show a green Updated button and means Employment Hero has successfully imported your selected Xero data.
Important
Before off-boarding an employee, make sure that you have created an off-boarding checklist, so that the platform generates a list of tasks that need completing before their termination date. To read further details on how to create an off-boarding checklist, refer to the following article.
The last step is to off-board the employee within Employment Hero. When off-boarding an employee, you can select the date of their termination, the reason for them leaving, and add in any needed comments. The steps on how to undertake this are:
- Log into your Employment Hero platform.
- Click the People menu.
- Click the Employees List submenu.
- Click the Action button next to the employee that needs off-boarding.
- Click the Off-Board Employee button.
- Complete the following fields:
- Voluntary cessation.
- Health.
- Deceased.
- Redundancy.
- Dismissal.
- Contract Cessation.
- Transfer.
- 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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