Terminate an employee from Employment Hero and Payroll classic

Available for the following plans: Employment Lite, Employment Plus, Employment Unlimited
Available for the following HR classic plans: Standard, Premium, Platinum
Available for the following Payroll classic plans: Standard, Premium
Available for the following user access level: Admin    

If your organisation's Employment Hero account is connected to the Employment Hero Payroll classic platform, it is easy to terminate an employee.

You only have to terminate them on Employment Hero and put the correct Payroll Cut Off Date. This information will then sync over to the Payroll classic platform, where you can create the pay run. The leaver will automatically be included in this pay run, and their pro rata earnings calculated.

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Termination process for Employment Hero & Payroll classic organisations

What you need to do

Step 1: Terminate an employee on the Employment Hero

Important

Before off-boarding an employee, create an offboarding checklist of the tasks that need to be completed before the employee's termination date. To learn how to do this, please refer to this article: How do I set up my organisation's offboarding checklists? 

After that, you can offboard the leave on Employment Hero. To terminate your employee on Employment Hero, please follow these steps:

  1. Log into Employment Hero.
  2. Click the People (people icon) menu on the purple side bar.
  3. Click the Employees List submenu.
  4. Click the Employees tab.
  5. Click the Actions dropdown button next to the leaver you need to offboard.
  6. Click Offboard Employee.
    screenshot of the employees screen, highlighting the actions of offboard buttons for an employee
  7. Complete the following fields:
    • Termination date.
    • Termination type.
    • Comment.
    • Employee access.
    • Payroll cut-off date:
      1. Click Custom date.
      2. Choose today's date for Cut off date.

    Important

    The Payroll Cut Off Date must be today, regardless of the termination date. For example, if it is 19th June today, the Payroll Cut Off Date must be "19/06/2024."

    This information prompts the payroll classic  to include this employee termination in the pay run.

    Warning

    If you do not enter today's date in the Payroll Cut Off Date, Employment Hero cannot inform the Payroll classic platform that this employee is being terminated. The Payroll classic platform will not be able to calculate the correct pro-rated salary for the employee.

    screenshot of the offboard employee popup, highlighting the custom date circle and cutoff date field
  8. Click the Terminate button.
    screenshot of the offboard employee popup, highlighting the terminate button
  9. You can complete the next steps on the payroll classic platform. Please refer to Step 2 in this article.
Step 2: Process your pay run on the payroll classic platform

The termination you processed on Employment Hero will automatically sync over to the payroll classic platform. Pro-rata calculations will also be automatic.

To process your pay run which includes the terminated employee, please follow these steps:

  1. Log into Employment Hero Payroll classic platform.
  2. Click the Pay Run (hand icon) menu on the black side bar.
  3. Click the Pay Runs submenu.
  4. Click the New Pay Run button.
    screenshot of the pay runs menu, highlighting the new pay run button
  5. Complete the following fields:
    • Pay schedule.
    • Pay period ending.
    • Date pay run will be paid.
      • Tick the Include terminated employees checkbox.

      Important

      Ticking this checkbox will include the leaver to this pay run.

    • Import timesheets.
  6. Click the Create button.
    screenshot of the new pay run popup, highlighting the include terminated employees checkbox and crea

    Helpful Hint

    You can see under Gross Earnings that their salary has been pro-rated automatically and correctly. You do not have to compute this number manually anymore.

    The salary pro rata calculation here is based on the configuration you have selected in Pay Schedules in Pay Run Settings. To learn more about this, please refer to this article: How do I set up pro rata calculations for starters and leavers?

    Also, any leave categories that are not excluded from the termination pay will be paid out in the pay run. To learn more about this, please refer to this article: How do I manage leave categories?

    screenshot of the pay run, highlighting the terminated employee's earnings
  7. Click the Finalise Pay Run button.
    screenshot of the pay run, highlighting the finalise pay run button
  8. Complete the following fields:
    • Date paid.
    • Journals
    • Publish documents.
  9. Click the Finalise button.
    screenshot of the finalise confirmation popup, highlighting the finalise button

Further information

What if I entered the incorrect Payroll Cut Off Date?

If you do not use today's date for the Payroll Cut Off Date, Employment Hero will not be able to inform the Payroll classic platform of the termination. This means the pay run will still show the employee's full salary.

What if I forgot to mark someone as a leaver and I have already finalised my pay run?

From 15 August 2024, any employee made a leaver with a termination date that is within a processed pay run will be automatically included in the next pay run. The employee will ‌also be reported to HMRC as a leaver.

Delete task reminders for terminated employees
Terminating an employee does not automatically cancel any onboarding tasks that were triggered before an employee was offboarded. Therefore, you could still receive a reminder if a previously triggered task is past its due date.
The best way to delete these pending tasks is by following the process below:
  1. Click the   Dashboard (Home) menu.
  2. Go to your To-do list widget.
  3. Click the elipsis.
    View all tasks.jpg
  4. Click View all tasks.
  5. Click the Other Tasks tab.
  6. Type in the name of the terminated employee to the search function.
  7. Select all the tasks you want to delete.
  8. Click the Actions button on one of the tasks.Actions in tasks.jpg
  9. Click Delete.

Explore related content

  • How do I report on unpaid employees ? This feature allows you to create a report that covering the details on the last date your non terminated employees received payment via a pay run within your payroll classic platform.
  • How do I report on pay run inclusions? This feature allows you to create a report on the inclusions your organisation has processed within your finalised pay runs, with the ability to narrow this data down by employing entity, pay schedule and location. 
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