1. Log into your Employment Hero Payroll classic platform.
2. Click Employee, then List.
3. Click the employee that needs to be terminated.
4. Scroll to the bottom of the page.
5. Click Terminate Employee.
6. Enter a termination date.
7. Enter a termination reason (optional).
   Note: This process will terminate the employee and mark them as inactive. This will mean that they are no longer eligible to be included in pay runs.

1. Click the Pay Runs menu (hand icon).
2. Click the pay run you need.
3. Click the name of the employee you need to terminate.
4. Click the Actions button.
5. Click Terminate Employee.
   
6. In the Terminate Employee popup, enter the correct:
   • Termination date.
   • Leave entitlement date.
   • Termination reason.

   Helpful Hint

   To learn more about termination reasons, please refer to this article: How do I record a termination reason when terminating an employee?

7. Click the Save button.
   
   
   

   Important

   The employee's record will turn pink to indicate it is in termination mode. It will display calculated earnings and any accrued leave to be paid out as part of the termination pay.

   To learn more about termination pays, please click Termination Pay Calculations and Pay Run Termination Reminders in the Further information section at the end of this article.

1. Click the Pay Runs menu (hand icon).
2. Click the pay run you need.
3. Click the name of the employee.
4. Click the Actions button.
5. Click Cancel Termination.
   
   
   

   Helpful Hint

   You can also reactivate the terminated employee. To do this, please refer to our article: How do I reactivate an employee?

Employees can only be deleted if they have not been included in any pay runs. Deleting an employee cannot be undone and you will not be able to retrieve this data.

1. Log into your Employment Hero Payroll classic platform.
2. Click Employee, then List.
3. Click the employee that needs to be deleted.
4. Scroll to the bottom of the page.
5. Click Delete Employee.
6. Click Delete.

The termination pay will be calculated based on the following:

• Annual Holidays – Any annual holidays the employee is entitled to will be paid out at the higher of AWE vs OWP. Annual holidays that have been taken in advance will be clawed back at the rate they were paid out at. If the negative entitlement is a result of the opening balance, the rate will be calculated based on the rates that would have applied at the time of implementation.
• Alternative Leave – Any alternative leave balance will be paid out based on the employee’s final day of work, i.e. if the employee submits timesheets, whatever was submitted for the employee’s final day will be what the alternative leave is paid out as. If the employee was on an advanced work pattern and the hours for their final day were overridden, the alternative leave will be paid as per that overridden entry. Likewise for an employee set to submit timesheets for exceptions only, if one was submitted for extra hours on their final day, this would be considered when calculating the hours and payment for the termination alternative leave entitlement to be paid out.
• Public Holidays – Any remaining annual holidays that the employee is entitled to at the point of termination are treated as if the employee had taken them immediately after the date their employment ended. If a public holiday falls during that notional period, it needs to be paid. The platform will work this out automatically and add the payment into the termination calculations.
• Any other leave category that is set up to be paid out on termination will automatically be calculated as part of the termination pay.
• Termination 8% will be paid based on the gross earnings since the employee’s anniversary date and will include the gross earnings paid in the final pay. As per legislation, any leave paid in advance will not reduce the gross earnings for Termination 8% as they will appear as a negative earnings line in the pay run.

Here are some things to note regarding terminations and termination pays:

• If the employee is set up to be paid default standard hours each pay period and is terminated mid-pay period, then the employee's hours will automatically be re-calculated on a pro-rata basis. We strongly suggest you double-check these hours to make sure they are correct. Once you have finalised the pay run, this employee will no longer be active or eligible to be included in future pay runs and the employee line will be highlighted red.
• If there are any unfinalised pay runs for the employee, you will not be able to terminate them until those pay runs have been finalised.
• When terminating an employee that is using standard work hours, 0 hours will populate for 'reversal of leave taken in advance' for leave taken on dates falling on a weekend. A manual adjustment is required in this instance.
• The Termination Reason entered when terminating an employee does not have any impact on PAYE or ACC Levy calculations. It is a "text" or FYI field only.  Any redundancy or retirement allowances should be processed as lump-sum payments, via the Add lump sum payment option on the actions button within the employee's pay run record. Choose the Redundancy or Retirement allowance (system) pay category.