Terminating an Employee
Back to knowledge base indexThe process of terminating an employee from your business and collating all the relevant information is now easier and more efficient with Loop hr termination process.
You can begin the termination process ahead of the actual termination date, or on the day or retrospectively.
You can choose to disable employee access to the system anytime.
The employee data remains live until the termination date passes.
The system will auto-remove data from the live site on the termination date (except if terminating midway through an active period, in this case schedules and financial reporting remain visible until the end of the period).
After the termination date the employee access will automatically end. You will be able to view historical data.
[1] To begin the termination process, go to Employees via the navigation panel, then select the employee you wish to terminate.
[2] Once the employee is selected, click the ‘Terminate’ tab
[3] Begin termination process by selecting the date of the last working day
[4] Click continue
A progress bar shows where you are in the termination process.
You can CANCEL the termination process at any point up until you click Confirm & Terminate (within the last step).
There are Tool Tips throughout the process to clarify specific points.
[5] Step 2 focuses on holidays, showing balances to the date of termination.
[6] In the Pay Adjustment section, for team members who have earned variable pay over the year (commissions bonuses etc); you can choose to pay the employee’s standard rate of pay or the variable rate paid over the past 52 weeks. (If you are unsure which rate to choose, employment law would likely state the variable rate, seek professional advice if you are concerned).
[7] Any future holidays will automatically be removed. If a holiday falls mid termination process, you will be asked to adjust the holiday to allow the system to complete its task.
[8] Click Continue.
[9] Step 3, Banked Overtime, if overtime has been accrued and it has been banked, the balance will show here.
[10] In the Pay Adjustment section, for team members who are owed Banked Overtime hours, again, you can choose to pay the employee’s standard rate of pay or the variable rate paid over the past 52 weeks (see point 6 above if clarification is required).
[11] Any Banked or TOIL events scheduled after the termination date will show here and will be automatically removed from the system (ensuring the balance is accurate).
[12] Click Continue
[13] Click through to Step 4, if there are any future CPD events booked, the system will remove them; if the termination date is part way through a scheduled CPD event, you will be asked to amend the event.
[14] Step 5 Payroll, an essential step in the preparation of payroll, the system will act according to how you pay (in arears or directly at the end of the work period). It will also act relevant to the individual being terminated from the system, for example does the final payment include variable pay, service or retail Commission, Personal, Performance or Super Bonuses and/or Team Bonuses) etc?
[15] You have the option to pay for the hours worked in the final pay period or pay the full salary. If using whichever is higher commission and the commission element is higher this element will process in Payroll.
[16] If you pay in arears you will be given the option to include the employee in the following payroll to capture paid in arears commissions etc.
[17] You will see an estimate of pay, however the final pay will be determined in the Payroll process.
[18] Click Continue
[19] Step 6 employee Access, choose whether you would like to allow the employee to continue to have access to their Loop hr account until their last day of work, or you would prefer to remove access to their account immediately?
[20] Review and complete
[21] A summary of information and the opportunity to make any notes that you would like to leave on the employee file.
You can click back to any of the steps (simply by clicking on the previously completed step) or indeed you can cancel the termination process by click off the page completely.
[22] The final step is to Confirm & Terminate
Once you have hit Confirm & Terminate the employee will be terminated from the system, if you have terminated into a future date, the employee will show on the system as normal until the termination date.
If you are terminating part way through a work period, the team member will remain on the system (schedules and reports) until the end of the period.
[23] Now terminated, you will be able to access the information anytime from the Terminated Employee list and go to Termination tab with the past employee profile.
[24] You can also download reports and a Termination Summary in a printable format that will include payroll details (once the final payroll has been processed after the employee termination).
All Documents (including documents relating to training records, contract etc.) per terminated employee, will be automatically removed from Loop HR files 6 years from the Employee termination date.
Payroll, Performance, Attendance, Absence records must be kept for 6 years (statutory retention period). The employer (Administrator) will be notified that, after 6 years from an employee’s termination, employee data can be safely removed. Meaning, this data is not automatically deleted from Loop HR.
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