How do I Separate an employee?

Updated on Aug 05, 2024

Navigation: Personnel>>Transactions>>Separation

Payroll>>Process Payroll>>Employee Transactions>>Separation

Separation Transaction

A separation transaction refers to the formal process of ending the employment relationship between an employee and an organization. It encompasses various actions taken to facilitate the departure of an employee from the company.

Separation transactions can occur due to several reasons, including:

Resignation: When an employee voluntarily decides to leave their position and provides notice to the organization.
Retirement: When an employee reaches the designated age for retirement and chooses to end their employment.
Termination: When an organization decides to end an employee's employment due to various reasons, such as poor performance, misconduct, or organizational restructuring.
Layoffs or Redundancies: When an organization reduces its workforce due to economic factors, reorganization, or changes in business needs, resulting in employees being let go.

How does it work?

Insert/edit/delete/view employee separation changes.

A separation transaction terminates an employee.

The transaction is entered and saved via this screen.
Once the record is posted, the employee is terminated, and the change becomes effective on the employee's profile.
N.B. Via the Feature Management, Separation records can be configured to be automatically posted when the effective date arrives.
A separated employee can be either ex or retired depending on the Change Reason selected.
For Retired Employees, the change reason Retired must be selected.
Separated employees can be viewed via the Ex Employees and Retired Employees options in the Employee screen.

Step 1: Enable Auto Post Separations (Optional)

Step 2: Enter new Separation Record

Step 3: Enter Separation Transaction Details

Transaction Reason Code and Description: Select the user defined Transaction reason for the Separation. E.g. Resignation, Termination, etc.

Effective Date: This should be the employee's last day at the organisation and is the date the separation will take effect. On inserting a new separation record for an employee the Effective Date will also be displayed in:

(1) Security>>User Administration>>Account End date - When the separation record has been posted, the terminated user will not be able to access the system on or after the effective date.

Pay To: This date is used to calculate the last pay day for monthly-paid employees. The system will pro-rate the salary, based on this date, and automatically send it to Cycle Changes for processing.

This date can either be the same as or later than the effective date of the separation, in the instance where the employee must continue being paid after their last day with the company.

Comments: Enter any general user defined comments for the separation record.

Benefits: Enter any user defined comments for the separation record as it pertains to the employee benefits.

Rehire: Select "Yes"if the employee can be rehired in the future. Select "No" if the employee should not be rehired in the future. Note that if "No" is selected, then the employee will not be available to be rehired in that transaction screen.

Termination Type: Select the Termination Type which should be linked to the transaction reason.

Stop Benefits: If the employee is enrolled in benefits and their enrollment in these must end with their separation, select "Yes". On inserting and posting of a new separation record for an employee the Effective Date will also be displayed in:

(1)Benefits>>Benefits Plan Type>> Expand Employee Record >> End date - When the separation record has been posted, the terminated user will not be able to access the system on or after the effective date.

Otherwise, select No and no end date will be inserted in the benefit plan for the employee.

Posted: This box will only be checked when the record is posted. Posting can either be done manually or is automatically done when the cycle in which the separation transactions are posted to, is run.

When a separation record is posted, the system automatically generates cycle changes to pro-rate the employee's salary (if required) as well as to deactivate the separated employee.

Last Updated: This is a system generated message.

Note: For Acting employees who are Separated before the Acting period ends, the End date in an employee's Acting record will be updated to match the Pay To date of the Separation record. Pay cycle entries will be recalculated to reflect such.

Step 4: Post Separation Transaction

Security>>User Administration>>[Select Employee]

The Account End Date in the employee’s user account is automatically populated with the Effective Date of an employee’s posted separation record. This ensures that the terminated employee has no access to HRplus on or after the Account End Date.