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How do I terminate an employee?

Step 1. Go to Payroll → Employees, open the employee, and on the Employment tab click Edit Employment.

Step 2. Scroll to the Termination section at the bottom of the panel ("Only set these when the employee is ending employment").

Step 3. Set the End Date — the employee's last day.

Step 4. Choose the End Date Code — the reason employment ended. This is required whenever an End Date is set. The options are:

  • Redundancy
  • Dismissal
  • Contract Cessation
  • Transfer
  • Voluntary Cessation
  • Ill Health
  • Deceased

Step 5. Click Save.

The final pay

The employee is still included automatically in any pay run whose period covers their end date, so run their final pay as normal. Add any termination pay items (unused leave, ETP, lump sums) to their pay in that pay run.

When their pay includes a termination (ETP) or Lump Sum E line, an STP details section appears on their page inside the pay run:

  • Each ETP line asks for an Income Date — the date the payment was assessable, usually the cessation date.
  • Each Lump Sum E line asks for a Financial Year — the 4-digit year the payment relates to (for example 2023 for FY 2022–23).

Finalising the pay run fails if these are missing, so fill them in before you finalise.

What happens after termination

  • Once the end date has passed, the employee's status shows as Terminated. You can filter the Employees list by Terminated to find them.
  • They're no longer added to new pay runs whose period starts after their end date.
  • If your plan counts employee seats, a terminated employee still uses a seat for the calendar month they're terminated in — the seat frees up at the start of the next month. Backdating an end date to a previous month doesn't release the current month's seat early; the panel shows a notice when this applies.
  • Their records stay put: past payslips, income statement, leave history and pay run lines all remain visible.

Can I undo a termination?

Yes. Open Edit Employment, clear the End Date, set the End Date Code back to None, and save. The employee returns to Active and is included in new pay runs again.

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