Employee Termination Process

Employee Termination Process is under Process.

The Employee Termination Process in HRPro handles all the steps required when an employee leaves the company. This process includes:

1. Updating Records: Marking the employee as terminated in the system to ensure accurate records.

2. Final Payroll: Calculating and processing the employee's final paycheck, including any outstanding wages, unused leave, and other entitlements.

3. Exit Interviews: Recording reason for leaving.

4. Revoking Access: Ensuring the employee's access to company systems and resources is disabled.

5. Compliance: Making sure all legal and company policy requirements are met.

You can use Employee Termination Process to automate the Employee Termination Manual Procedure.

Select the Employee to terminate

Input the Termination Date, Termination Reason, Last Working Date (optional), Resignation Date (the date the employee resigns, optional) and whether you wish to change the payment method to Cheque/Others. 

You can optionally generate the final payment payroll of this employee by selecting "Yes" from the General Final Payment dropdown list. 

Select the Pay Date and MPF Contribution Date for this payroll of the terminated employee.

Payment in Lieu of Notice

If Payment in Lieu of Notice (PILON) for this employee is applicable and it is the employer pays the PILON, select Pay in Days by Employer (if the notice period is expressed in days) or Pay in Months by Employer (if the notice period is expressed in months). If the employee pays the PILSON, select Pay in Days by Employee (if the notice period is expressed in days) or Pay in Months by Employee (if the notice period is expressed in months).  The Notice Days and Notice Months is calculated by the system according to the resignation date and the termination date, but it can be overwritten by the user according to your company policy or the employment contract of the employee.

Long Service Payment / Severance Payment

The Salary in the Long Service Payment/Severance Payment formula is the Last Salary or the Last 12 Months' Average Salary whichever is higher (See Long Service/Severance Payment Report for the calculation method). If Long Service Payment is selected on Pay LSP/SP in this Payroll Batch, HRPro will populate the LSP amount to the Payroll Record. If Severance Payment is selected on Pay LSP/SP in this Payroll Batch, HRPro will populate the SP amount to the Payroll Record. 

Click the Proceed button to generate the payroll batch/record. 

To amend the final payment, go to the Payroll Amendment. 

You may need to generate IR56F Employer's Notification of Employee Cessation or IR56G Employer's Notification of Employee Cessation and Departure from HK and Employee MPF Statement after the final payment is confirmed.