Payroll Leavers

Ensuring a terminated staff member is removed from the payroll system in a timely manner is a key management responsibility and may have serious financial implications on the organisation is this duty is neglected.

Payroll Leavers

There may be some legal issues involved in the payroll and benefits if an employee quits. It is also essential to ensure that the terminated staff member is removed from the payroll system promptly. If the duty is neglected, it may have serious financial implications for the organisation.

Payroll Process for Leavers

Leaving a job is an important and potentially stressful event for an employee. How the employer and management manage this process has an impact on the employees lasting impression and experience of the organization. A well-managed leaving process ensures a smooth and stress-free transition for the leaving member of staff and the line manager. If the notice period of the employee is detailed in their terms and conditions of employment, it should be taken into account while agreeing on a leaving date. The severance pay and the last paycheck should be provided in time. Also, the organization needs to check whether the terminated staffs are removed from the payroll system.

Steps to follow

  • Read your employee policies document
  • Check notification of termination
  • Pay for unused paid time off
  • Decide about severance pay
  • Cut the employee’s last paycheck

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