To remove a staff member from your active list you will need to run a process to terminate their employment instance within the system. This will finalize them in the system whilst retaining their payroll information for future access and review. 

This article contains the following items;

  1. Preparing an employee for termination
  2. Cessation Reason Codes
  3. The Importance of the Working Week for Terminations
  4. Finalization and payment to the staff member

Preparing an employee for termination

  1. Open the list of employees.

  2. Click to select the employee's name from the list.

  3. Select the Termination/Notes tab

  4. Use the Terminate button to flag the selected employee for termination.

  5. This will show a new form in which you can enter the Finish Date (last day of employment), the Cessession Type (the type of termination), as well as any Termination Notes that you would like to include as a future reminder as to what has happened with this employee.

  6. Select Terminate button to save the changes.

  7. Once saved the Finish Date, Cessession Type, and Termination Notes values on the employee details screen will be updated.


NOTE: An employee may be reinstated at any time prior to the completion of the termination wizard and the subsequent processing of their final payroll. However, after the final payroll has been processed the termination is irreversible (except via a payroll Roll Back). 
If there is a change of mind at this point, the employee will need to be re-added into the system.


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Cessation Reason Codes

As a part of the termination process, you will need to specify the reason for the employee's finalization of employment.

For a list of definitions for these types please see below.

Employee Initiated 

  1. Voluntary - Includes resignation, retirement, domestic or pressing necessity, or abandonment of employment.
  2. Health - Includes illness, ill health, medically unfit, and total permanent disability.
  3. Deceased - Death of the employee.

Employer Initiated

  1. Redundancy - Includes genuine redundancy or an approved early retirement scheme.
  2. Dismissal - Includes dismissal, incapacity to perform required work, misconduct, and inefficiency. 
  3. Contract - Includes the completion of an agreed contract, seasonal work completed, and no more work required.
  4. Transfer -  Includes transferring employees across payroll systems, and administrative arrangements between employees


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The Importance of the Working Week for Terminations

The employee's standard working hours play an important element when doing a termination as it influences the calculations for items including the following

  1. Determining the Standard weekly pay for items such as In Lieu of Notice and Redundancy payments.
  2. Determining the Long Service Leave payout amount
  3. Determining the calculation and tax rate for the employee's Marginal Tax amount affects the taxation on items such as annual leave and LSL payouts.

    For a full list of termination items that are calculated using the Marginal Tax rate please refer to the ATO's documentation at https://www.ato.gov.au/Rates/Schedule-7---Tax-table-for-unused-leave-payments-on-termination-of-employment/


The employee's Working Week is defined in the Employee Details > Working Week tab. 


Please note that for Long Service Leave calculations you may be required to use a calculation based on the average working hours that the employee has worked over a period of time. 

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Finalization and payment to the staff member

Once the above items have been completed you are ready to do the termination for the employee within payroll.
Within the payroll, you will see the following to indicate that there is a termination listed with a finish date within the period.


To prepare the payroll for the termination simply select the Options dropdown and click the Termination option


This will take you through a Wizard in which you can elect whether or not items such as the payment of leave, payments in lieu of notice, redundancy, etc. are to be paid to the staff member.


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