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Managing Employee Terminations and Final Pay

Available for the following payroll plans: Standard, Premium, Platinum, Unlimited

When an employee leaves, picking the right option depends on your needs. You should terminate an employee within a pay run to process final payments and reporting. You should only delete an employee to remove a record, and you can only do this if they haven't been included in a pay run yet.

When to Use Each Termination Method

  • Terminate an employee directly within the employee's file: When no payments or adjustments are needed, and you only need to mark the employee as inactive.
  • Terminate an employee within a payrun: For processing final payments and reporting.
  • Delete an Employee: Only for removing records after terminating. You can only delete an employee if they haven't been included in a pay run.

 

Getting started

Terminate an employee directly within their employee profile

  1. In Employment Hero, click People > Employee List.
  2. Click the employee who needs to be terminated.
  3. Click the Start offboarding link in the upper right corner of the first section. 
  4. In the pop-up, select the Date: Enter the Last day of work for the employee.

  5. Select the Termination type from the dropdown list.

  6. Enter a Comment if you need to record specific notes about why the employee is leaving.

  7. Rehire Status: (Optional) Select Yes or No to answer, "Would you consider this personnel for rehire?"

  8. Read the Termination Reminder to ensure you have notified your group insurance carrier about benefits (if applicable).

  9. Click the Terminate button to finalize the offboarding.

Terminate an employee within a pay run
  1. Click Pay > Run Payroll
  2. Click the pay run that needs an employee termination added.
  3. Click the employee's name who needs termination pay added.

    Warning

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

  4. Click the Actions   button.
  5. Click the Terminate Employee button.
  6. Select the termination date and click the Save button.
     
Cancel an employee termination
  1. Log into your Employment Hero Payroll platform.
  2. Click the   Pay Run menu.
  3. Click the pay run that needs an employee termination cancelled.
  4. Click the employee name who needs a termination payment cancelled.
  5. Click the Actions   button.
  6. Click the Cancel Termination button.
     

Deleting an employee

Delete an employee directly within the employee's file

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. In Employment Hero, click People > Employee List.
  2. Find the employee who needs to be terminated.
  3. Click the Actions dropdown and select Delete.
  4. The pop-up will say: "Deleting an employee file will permanently remove their data from your organization's account, and this cannot be undone. As an employer, you may need to keep employee records for a certain period of time to meet legal requirements, so we recommend that you make sure you comply with these requirements."
  5. You can proceed by confirming the name of the selected employee and typing it into the text box. 
  6. Click Delete to finalize it. 
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