Termination Reasons are a list of custom reasons that employees may be terminated for. When an employee is terminated, you will need to set a termination reason on their user profile.
The Config > Payroll > Termination Reasons screen does not come with any preset items, so you will need to configure the reasons that are required for your organisation.
Add a Termination Reason
To add a Termination Reason:
Go to Config > Payroll > Termination Reasons.
Click Add New Termination Reason.
Enter a Name for the termination reason. This can be tailored to meet your reporting requirements, to a maximum of 115 characters.
Select a Classification for the termination reason. This information is used to categorise the termination when the employee data is submitted through STP.
The Classification categories are:
- Voluntary - an employee resignation, retirement, domestic or pressing necessity, or abandonment of employment
- Ill Health - an employee resignation due to a medical condition that prevents the continuation of employment, such as for illness, ill-health, medical unfitness, or total permanent disability
- Deceased - the death of an employee
- Redundancy - an employer-initiated termination of employment due to a genuine bona fide redundancy or approved early retirement scheme
- Dismissal - an employer-initiated termination of employment due to dismissal, inability to perform the required work, misconduct, or inefficiency
- Contract Cessation - the natural conclusion of a limited employment relationship due to contract/engagement duration or task completion, seasonal work completion, or to cease casuals that are no longer required
- Transfer - the administrative arrangements performed to transfer employees across payroll systems, move them temporarily to another employer/entity, transfer of business, move them to outsourcing arrangements, or other such technical activities.
Tick the Enabled checkbox if the termination reason should be available to assign to terminating employees.
Edit a Termination Reason
To edit a termination reason, click on the blue hyperlink in the Name column. You’ll be able to edit the Name, Classification, and Enabled status. Click Save to apply changes.
Delete a Termination Reason
You can delete a termination reason if it hasn’t been assigned to an employee profile. You’ll see a checkbox to the left of a termination reason if it can be deleted.
To delete a termination reason:
Tick the checkbox to the left of the termination reason Name.
Click With selected termination reasons…