Terminating an employee via the payroll platform

How it works

In order for you to terminate an employee correctly from the payroll platform, you need to follow a specific process. This ensures your employees receive their correct termination pay and and that their off-boarding from your payroll platform is smooth and trouble free.

Availability

Payroll Plan:   Standard   Premium
  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

Step 1: Off-boarding and terminating an employee for integrated HR & Employment Hero payroll

Important

Before off-boarding, an employee, create an off-boarding checklist that lists the tasks that need completing before the employee's termination date. To read further details on how to create an off-boarding checklist, refer to the following article

Next, off-board the employee within the HR platform.

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:

  1. Log into Employment Hero.
  2. Click the Personnel menu.
  3. Click the Employees submenu.
  4. Click the Action button next to the employee that needs off-boarding.
  5. Click the Off-Board Employee button.
    Termination_12.jpg
  6. Complete the following fields:
    • Termination date.
    • Termination type.
    • Reason.
    • Comment.
  7. Click the Terminate button.
    Termination_13.jpg
Step 2: Process a termination pay

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 Terminate Employee feature within a pay run enables you to select an employee and specify their termination date and the reason behind this action. The platform will then apply the correct termination payment to the employee record to ensure you give the correct severance pay to the employee.

The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Pay Run menu.
  3. Click the New Pay Run button.
    Screenshot of payrun screen in payroll platform. New pay run button is highlighted in red.
  4. Complete the following fields:
    • Pay Schedule
    • Pay period ending.
    • Date pay run will be paid.
    • Manually add employees to this pay run.
    • Create pay run with empty pay.
    • Import timesheets:
      • Timesheets for this pay period.
      • All unpaid timesheets.
      • Don't import timesheets.
  5. Click the Create button.
    screenshot of popup prompting a new payrun asking you to set parameters of the payrun.

    Important

    For information on how to add an employee to a pay run, refer to the following article.

  6. Click on the employee's name who needs a termination payment added.
    The pay run before it is finalised
  7. Click the Actions button.
  8. Click the Terminate Employee button.

    Warning

    An employee included in an un-finalised pay run means you can not use the termination payment feature. You will need to finalise any existing pay runs first and then process their termination payment.

    Screenshot showing the options triggered by the action button when you click on the name of an employee in the payrun
  9. Select the termination date and click the Save button.

    Important

    Repeat the steps 6 to 9 for each employee that needs a termination payment added.

    Pop up confirming termination
  10. Click the Finalise Pay Run button.
    Termination_6.jpg
  11. Complete the following fields:
    • Date paid.
    • Create pay event:
      • Create pay event manually at a later date.
      • Create pay even immediately.
    • Publish pay slips:
      • Do not make payslips available until "Publish pay slips" button is clicked.
      • Make pay slips available to employees now.
      • Publish pay slips at x time on x date.
  12. Click the Finalise button.
    Termination_7.jpg

Explore similar topics

  • Payroll payment reporting: 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 platform.
  • Payroll pay run reporting: 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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