Terminating an Employee

When an employee is leaving the company, a payroll termination must be done to pay out remaining components such as annual leave, time in lieu, lump sums, etc.

From your Payroll Administrator role:

First, initiate your normal pay run in which you will pay the employee for actual time worked. If wanting to keep the pay run separate to all other employees, you can choose to run it as an adjustment run.  Note: If doing an adjustment run, it is important to ensure the period start and end dates exactly match the standard pay run for that same 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 to reduce the employee’s working hours for this period

2. Click the Add button

3. Click OK on the information pop up

4. Click Submit


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

Note: Review your Pay component sub types before terminating an employee. If a required pay component has been marked inactive you will receive an error such as the below when clicking the Terminate button on the employee record:

"Cannot read property ote from undefined"

For example your Annual Leave related Pay components should be active. 

From the employee record:

1. Go to the Leave Info tab to check their 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

Note: The Terminate Employee button commences the termination pay run, pulls in the leave balances to be paid out and once the pay run is finished the process includes changing the Employment Status field (on the Payroll tab) to Terminated and populating the Termination date (on the HR tab).  When an employee record is showing as terminated the Terminate Employee button disappears.  If you have nothing more to pay out to the employee, (ie. If there are no remaining leave or other components to pay out to the employee for their termination), then there is no need to run the Employee Termination pay run process via theTerminate Employee button – you just need to manually Edit their record and change their Employment Status to Terminated and enter the Termination Date on the HR tab, then Save.  (For completeness sake, you can also enter an End Date against their pay components to shown them as expired.) The Inactivecheckbox on the System Info tab of the employees record does not get automatically ticked as part of the termination process, so you will do this manually if you want to make the record inactive. Doing this ensures the employee does not show up in employee lists, etc.


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. Any additional leave payout entitlements can be added here

3. Set the Pay Date

4. Press Submit


You will now be taken to the Payslip detail screen.

1. The termination pay components are listed here. Note: these components can be edited manually if you wish to change the automatically calculated amounts for any reason, using the Edit link against the line

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


If editing a pay component or using the Manually Add Detail button to add pay components, you will see the below pay component screen:

1. Enter the component Type, e.g. salary/wages, tax, superannuation, etc

2. Select the component Sub Type. This will automatically fill in the Description, which can also be edited if needed

3. Enter your Qty, UOM, Rate and Amount. Note: If entering a once off total mount, such as an additional tax amount, you can just populate the Amount field

4. Click Save


Once your new component has been added, or your existing component has been edited, you will see it added to the components listing as highlighted below.

1. Now use the Recalculate button


1. If you have added or amended tax components, un-tick the ReProcess Tax option. Note: Leaving this option ticked will re-process the total tax calculation of your termination pay, based on any additional components you have added to the payslip

2. If you have added or amended superannuation components, un-tick the ReProcess Super option

3. If you have added  or amended percentage based deduction components, e.g. a union deduction that is 1% of the salary, un-tick the ReProcess Percentages option

4. Click the Recalculate button


1. Review your recalculated pay components here to ensure all figures are correct

2. You can press the Print Preview button to see a preview of how this payslip is going to look, before proceeding

3. You can now return to the pay run by clicking the Pay Run link


From this point, you can proceed as per the normal pay run processes to finish off this termination pay run.

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