Summary

You can add payroll transactions to terminated employees for post-termination payments, such as adjustments, back pay, and commission. You can enter any type of transaction made after the employee was terminated, but you must also add a termination transaction to process the pay successfully.

Warnings and Validations

PayGlobal includes warnings and validations to indicate when a terminated employee is added to a pay sequence, and when a pay is processed for such employees to ensure that users are aware payments are being made for a terminated employee. You can successfully process a pay for a terminated employee only if that pay sequence contains a termination transaction, otherwise pay processing will fail.

Automatic transactions

Automatic transactions, such as permanent transactions, modelling, leave requests, and leave accruals are not created for terminated employees. You have to manually add all transactions, including additional annual leave payments.

Note: PayGlobal will treat any additional payments as a termination pay so it will try to reverse additional annual leave payments if the employee has no annual leave balance. For example, if you enter an annual leave transaction for 8 hours, then pay processing will automatically create a -8 hour annual leave transaction.

When you close a pay that contains an employee's termination transactions, PayGlobal:

• Copies termination information to the employee's termination fields
• Sets the employee's Auto-pay field to "No".

  Note: If you ran a payslip report on an open pay sequence that contained a previously terminated employee, then the report would incorrectly display annual leave accruals for that employee. As a result, you should run payslip reports on closed pay sequences only.

Pay Header

If an employee is not included in a pay sequence, then you can use the Pay Header (Ctrl+P) option in the Insert menu to add a pay header for that employee so you can enter transactions for them. You would use this option for:

• Terminated employees
• Employees who started after the pay was opened
• Employees who are switching pay periods.

Annual Leave

New Zealand

When you make a payment to a terminated employee, PayGlobal does not accrue annual leave for that employee. However, if the payments are included in the gross earnings for annual leave (Allowances | Details (iii) tab | Include in Annual Leave = "Yes"), then a percentage of the total will be paid out as annual leave as defined by the Annual Leave Table | Values tab | Entitlement (percentage of gross) field.

Australia

When you make a payment to a terminated employee, PayGlobal does not accrue annual leave for that employee. You will have to determine whether the additional payments are eligible for annual leave and manually add any leave transactions, if necessary.