This article includes the following

1. How to Flag an Employee for Termination
2. Cessation Reason Codes
3. The Importance of the Working Week for Terminations

How to Flag an Employee for Termination

1. Navigate to Setup > Employee Details or select the people icon from the top of the main screen.
   
   
   
2. Select the employee from the Employee drop-down menu
   
   
3. Click on the Termination / Notes tab
   
   
4. Use the Terminate button to flag the selected employee for termination. This commences the termination process
   
   NOTE: Depending on the timing, the termination process may be stopped and reversed. 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 may be duplicated from the employee form.
   
   
5. Enter the Finish Date and Termination Notes (detailing the circumstances of termination).
   
   
6. Select Save to set the status of the employee to Terminated.
   
   
   
7. Once saved the Finish Date, Cessession Type, and Termination Notes values will have also been updated. 

As an additional note, the employee's license becomes available for another employee and the employee is still able to be Reinstated.

Please Note: The termination process is not complete, you will need to run the payroll that contains the selected termination date and complete the Termination Wizard.
(For more information See Processing Payroll Step 4 - Completing Terminations Using the Wizard)

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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. 

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. to calculate this we recommend referring to the Gross hours (day summary, averages) under the Payroll Reports (Department Costs) reports category.

This report will give you a breakdown of the total days worked per weekday for the employee, the number of periods that the employee has been included in, and the average hours for these periods per day for the employee.

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