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Xero guide: Employee termination

Available for the following HR plans: Free, Standard, Premium, Platinum

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.

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: 

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 access
    • 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.

  6. Click the Terminate button.

Explore related content:

  • 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 Xero 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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