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

HRPro uses the contractual notice settings in Employee Master, the Resignation Date and the Termination Date to calculate the unserved notice period. If no contractual notice period is specified, the applicable default requirement is used for continuous contracts.

The Resignation Date should be the date notice was communicated. Leaving it blank means no notice was given, so the full required notice is treated as unserved.

The panel displays the required notice, notice expiry and any unserved period. Notice Days and Notice Months are populated where applicable. For partly served month-based notice, decimal months are calculated proportionally over the full required notice period. Review the values and adjust them only where necessary to reflect an approved arrangement.

Under Process Payment in Lieu of Notice in This Payroll Batch, select who pays—Employer or Employee—and whether to calculate using Days or Months. Select Do not process to exclude PILON from this batch. Days and Months are alternative calculation bases, not amounts to be applied together.

Resolve any validation or review messages before processing. Non-continuous contracts, waivers and exceptional termination arrangements require separate review.

Long Service Payment / Severance Payment

Refer to the Long Service Payment (LSP) Report and the Severance Payment (SP) Report for the formulas used to calculate LSP and SP. 

If Long Service Payment is selected under Pay LSP/SP in this Payroll Batch, HRPro will insert the calculated LSP amount into the Payroll Record. 

If Severance Payment is selected under Pay LSP/SP in this Payroll Batch, HRPro will insert the SP amount into 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.