Employee Resignation
Terminate employees on Agrigistics
Last updated
Terminate employees on Agrigistics
Last updated
Terminating employees is a sensitive process that requires careful handling to ensure compliance with legal requirements. In Agrigistics, employees not currently linked to a pay run will simply be marked as inactive upon termination. Here’s a step-by-step guide on how to terminate employees from either the Management or Payroll modules.
You can terminate employees from either Manage / Employees or Payroll / Employees. The process and effects are identical regardless of where you initiate it.
To terminate employees from Manage / Employees:
From the employee list, select the employee(s) you wish to terminate.
You can select multiple employees if needed for bulk actions.
Click on “Bulk Actions” and select “Resign”.
To terminate employees from Payroll / Employees:
From the employee list, select the employee(s) you wish to terminate.
You can select multiple employees if needed for bulk actions.
Click on “Resign Selected” at the top of the page.
After selecting to resign an employee, a panel will appear prompting you to provide additional information necessary for the termination process.
This is the last day the employee will be considered active in your organisation. You can set the termination date at any point in your payroll processing cycle. For example, if an employee is to be terminated in the next pay period, you can already specify their termination date now.
If the employee is linked to a pay run, the termination date cannot be before the start of the employees current pay run.
The employee will become inactive on Agrigistics only after this date. If the employee is linked to payroll, it's crucial to understand that any time and attendance data recorded after the termination date will not be included in their final pay slip. This ensures that payroll calculations remain accurate and reflect only the period during which the employee was active.
When terminating an employee, in addition to selecting the UIF status code, you can add custom termination reason to provide additional context for the employee’s termination. Each time an employee is rehired, a new active period is created, allowing a termination reason to be specified for each period of employment.
When processing the termination of an employee in Agrigistics, particularly for those linked to payroll, it's necessary to specify the reason for termination using UIF (Unemployment Insurance Fund) status codes. These codes help to categorise the nature of the termination and ensure that all necessary legal and procedural standards are met.
UIF status codes are only applicable to Payroll Employees. If you are terminating employees that are not linked to payroll you still need to provide a status code but it will not be reported to the Department of Labour.
Here is a summary of the UIF status codes for terminating employees:
Active: The employee is actively employed.
Deceased: The employee passed away.
Retired: The employee retired.
Dismissed: The employee was dismissed following a disciplinary hearing.
Contract Expired: The employment ended after a fixed-term contract reached its end without renewal.
Resigned: The employee voluntarily resigned.
Constructive Dismissal: The resignation was forced by the employer's actions, as determined by legal authorities.
Insolvency / Liquidation: Termination due to the employer’s bankruptcy.
Maternity / Adoption Leave: Temporary leave for childbirth or adoption.
Long-term Illness: Permanent termination due to illness preventing the employee from fulfilling duties.
Retrenched / Staff Reduction: Termination due to operational staff reductions.
Transfer to Another Branch: The employee has moved to another branch.
Absconded: The employee did not report to work and is considered to have abandoned the job.
Business Closed: The business ceased operations for reasons other than bankruptcy.
Death of Domestic Employer: The employee's service ended due to the death of the employer.
Voluntary Severance Package: Termination following acceptance of a voluntary severance offer.
Reduced Working Time: Temporary reduction in work hours.
Commissioning Parental: Leave for the primary caregiver of a child born via surrogacy.
Parental Leave: Leave for caring for a new child, where the employee is not the primary caregiver.
When an employee is terminated, managing their leave payout correctly is crucial to ensure compliance with employment laws and company policies. Here's how leave payouts are handled in Agrigistics based on the employee's payroll linkage and leave configuration:
Please refer to the section below on how to disable leave payouts when terminating employees: Optional Leave Payout
This employee is not linked to payroll.
Employees not linked to any active pay runs will not receive a leave payout. They will simply be marked as inactive on the provided termination date.
To enable leave payout, the employee must be added to a pay run where leave is configured.
If an employee is part of a pay run but leave has not been configured in that pay run, no leave balance exists and hence no payout will occur.
To facilitate a leave payout, configure leave settings in the employee’s linked pay run. Once set, the leave payout will automatically be calculated and included.
For employees with configured leave in their pay run, their remaining leave balance will be paid out as an earning in their current pay run. If their leave balance is negative, it will be deducted as a negative payout.
If leave is accrued on an hourly basis, the balance will be updated daily until the employee's last active day.
Invalid employees will prevent you from resigning them. Remove them from the list or fix the errors below to resign them.
Employees linked to a pay run without a valid active period cannot be terminated. The active period may be missing or their current active period does not overlap on thier current pay run.
To resolve this, either remove the employee from the current pay run or establish a new active period.
When terminating employees, leave payouts are enabled by default. However, if you do not want to process leave payouts—for example, in cases of transferring employees between branches or when employees have absconded—you can disable the leave payout option. To do this, simply toggle the Leave Payout switch to disable payouts for all selected employees.
If an employee has a leave balance, the amount to be paid out will be displayed in the "Manage Leave" section.
Click on the "Pay out all leave" toggle to disable leave payouts for all employees.
Leave payouts will be disabled for all employees with leave balances.
If employees were terminated with or without leave payouts by mistake, you can easily correct this by reverting the resignations: Revert Resignation or Bulk cancel resignations
Reverting a resignation in Agrigistics is possible under certain conditions, for example: if the termination was entered by mistake or if the employee’s contract is extended. Here’s how to handle the cancellation of a scheduled termination:
The resignation can only be cancelled if it is scheduled within the current pay run and the pay run has not yet been finalised.
If the pay run including the resignation has been finalised, the resignation is also finalised. In such cases, to re-employ the employee, a new active period must be created and the employee must be re-enrolled.
If you get the following error: "Leave payout scheduled, but leave payout not configured in pay run settings." it means that the current employee has a leave balance but the leave payout settings is not configured. Follow this link to configure the payout: Leave Payout.
Navigate to the Employee’s pay run page:
You can find the employee in two ways:
Payroll / Pay Run: Select the relevant pay run, then click on the employee in the list.
Payroll / Employees, then click on the employee in the list.
Resignation Notification:
At the top of the employee's page, a banner notification will be present indicating that the employee is scheduled for resignation within the current pay run. This will include the planned date of resignation.
Cancel the Resignation:
Click on the button next to the notification to cancel the resignation. This action will reinstate the employee as active in the system.
Upon cancellation, any configurations related to their resignation, such as pending leave payouts, will be removed. The employee’s status will revert to active, and they will continue as if the resignation had never been scheduled.
To get started, navigate to Payroll > Pay Runs and select the desired pay run.
Select Employees: Choose all or specific employees within the selected pay run.
Click on Manage Leave.
Select Remove Resignations.
This will revert all resignations and cancel any pending leave payouts for selected employees.
Follow these steps to generate a termination report, which provides a list of employees along with their termination reasons:
Employee is not currently linked to a pay run and has no open active periods:
Employee does not have a valid annual leave balance:
Linked to a Pay Run and Leave is Configured:
Employee does not have any active periods that overlap with their current pay run:
