Terminating an Employee

A clean exit in the system: the termination record, the handoffs, the final pay, and what stays behind.

Before you click anything

Settle the facts first: the effective date (it drives final pay and headcount reports), the termination reason (from your configured list), who inherits their direct reports, and what final-pay extras apply — unused vacation payout, severance, outstanding loan recovery.

Step by step

1. Record the termination. On the profile's Employment History tab: Update Employment → Terminate, with the effective date and reason. (Employment History)
2. Handle the handoffs. The termination flow asks for a new manager for their subordinates, and replacements if they managed a department or division. The system then blocks their login, removes them from the time clock, and drops them from notification groups automatically.
3. Square up time off. Check their balances before final pay: a payable vacation balance becomes a final-run earnings item per your policy; approved future leave should be cancelled through the cancel flow so it doesn't pay.
4. Square up money. Outstanding loan balance? Decide whether the final pay recovers it (adjust the deduction) or it's settled outside. End any standing allowances/deductions that shouldn't apply to the final period.
5. Run final pay. If the termination date falls inside an open pay period, the regular run includes them one last time. Severance or in-lieu payments outside the period go through an off-cycle run. After that, they're excluded from future runs automatically.
6. Afterwards. The record stays — payslips, history, and statutory reports remain intact, and the person appears under the Terminated Users filter in People. Annual tax certificates for the year still generate. Rehiring later is a new hire entry on the same record.