Summary

Use an X. Termination-type allowance to pay employee termination payments. Create a termination transaction when an employee ceases working for your company so that you can generate their final pay.

Standard or Manual pay?

You should add the termination transaction in a Manual pay. If any problems arise with the termination pay, then you can avoid delays in the pay run for the whole organisation.

Transactions in other open pays

If you terminate an employee who has transactions (such as a pay header) in other open pays, then you cannot process the employee’s termination pay until you:

• Process and close those pays (if the employee should have the transactions)

  - or -

• Delete all transactions for that employee from other open pays (if the employee should not have the transactions).

You can use the Delete employee from pay sequence menu option in Transaction View to delete all employee information (such as a pay header and all linked transactions) from a pay sequence.

Note: You no longer have to delete the employee's Termination date before you can add transactions to terminated employees.

Result

A termination (X-type) allowance generates payments for an employee's outstanding entitlements, which may include annual leave and leave credits. PayGlobal calculates the annual leave payment to be what their entitlement will be when this pay is closed.

On the Allowances - Details (iii) tab page of the annual leave allowance, if Include in Annual Leave = Yes, then a second annual leave payment is created. This payment pays the employee's annual leave entitlement on the initial annual leave payment.

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.

When you close the pay, the Employees - Dates tab page is updated with the Termination date and Termination Reason.