Terminating an Employee – with Lump Sum ETP in Lieu of Notice

When terminating an employee who is to receive a lump sum ETP in lieu of notice amount, there are some specific processes which need to be followed.

Note: It is important to note that as a Part Period Reduction is being used during the employee’s final pay run, there is no requirement to set an end date against the pay component. The end date will be set during the termination run.

From your Payroll Administrator role:

First, initiate your normal pay run. If wanting to keep the pay run separate for this employee to all other employees, you can choose to run it as an adjustment run.  Note: When running an adjustment, it is important to ensure the period start and end dates exactly match the standard pay run for that period

1. Select the type of pay run you would like to do (Standard or Adjustment)

2. Enter the relevant Pay Date

3. Select the employee(s) to be included in the pay run

4. Press Submit


On the Enter Employee Time screen:

1. If the employee has not worked the full period of their last pay run, you can reduce their worked hours by adding a Part Period Reduction line. This indicates the number of hours by which you want to reduce the employee’s working hours for this period

2. Click the Add button

3. Click OK on the information pop up

3. Click Submit


Complete the employee’s final pay run as normal, then go back to their employee record.

Note: Leave is not accrued on time in lieu of notice, unless the employee actually works during the notice period.

From the employee record:

1. Go to the Leave Info tab to check the leave balances are correct.

2. If there are any leave updates to be done, use the New Leave History Record button to add a positive or negative leave accrual amount.

3. Ensure you click the Update Leave button after modifying any leave records.

4. When ready to proceed, click the Terminate Employee button.


The first Employee Termination screen is only used for calculating leave payout entitlements. Any other remaining components need to be added manually to the pay slip.

1. Select the Termination Date

2. Set the Pay Date

3. Any additional leave payout entitlements can be selected here

4. Press Submit


You will now be taken to the Payslip detail screen:

1. You will see the termination pay components listed here. Note: these components can be edited manually if you wish to change the automatically calculated amounts for any reason. Please ensure you use the Recalculate button and take note of tax and super reprocessing options for any manual adjustments to the existing components

2. If additional components are required, use the Manually Add Detail button


1. Select the component type, e.g. Salary/Wages

2. Select the sub-type, in this case ETP in Lieu of Notice (Taxable)

3.  Enter your Qty, UOM, Rate and Amount figures

4. Click Save


1. The component will be added to your components listing

2. Also ensure you add the ETP Tax withheld component, as tax is not calculated automatically on this type of component

3. Click the Recalculate button


1. Ensure your ReProcess Tax option is unticked according to your component requirements

2. Ensure your ReProcess Super and ReProcess Percentages options are ticked/unticked according to your component requirements

3. Press the Recalculate button


1. In this example, notice the tax has been recalculated, to include tax from the added ETP Time in Lieu of Notice component

2. You can Print Preview the payslip to see how it will appear to the employee at this point

3. When you have checked your components are all correct, click the Pay Run link to return to the termination pay run


You will now be returned to the pay run:

1. Press the Approve Payslips button to continue on with the pay run


The rest of the process from this point  will continue as the standard pay run process. Once you finish this pay run, the termination process will be completed

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