Terminate and delete an employee

Once an employee’s employment has ended, terminate them in UK Payroll to ensure correct final payments and proper reporting to HMRC.

How to terminate an employee

1. From the left side bar, select Employees.
2. Select the relevant employee.
3. Click Actions > Terminate employment in the top right corner.
4. Enter the Termination date and Post-termination email (optional).
5. Select how to calculate Holiday entitlement (Days or Hours).
6. If you know the employee’s outstanding holiday balance, enter the amount in the Outstanding balance field. If you want UK Payroll to calculate it for you, toggle on Entitlement calculation and enter the Entitled yearly holidays and the Hereby used holidays.

   Note: UK Payroll calculates holiday pay based on your Holiday pay scheme. To learn more, see Holiday pay.

7. Mark Include holidays in pension calculations to make holiday pay pensionable.
8. Review the pro-rata adjusted salary and click Yes, terminate employment.

   Note: UK Payroll pro-rates the salary to the leave date based on your company’s day rate method. To learn more, see Set salaries and pay rates.

How to delete an employee

If you’ve added an employee to the payroll by mistake or if you need to remove an employee from payroll for any other reason, you can delete them as long as they haven’t been a part of a Submitted payroll.

If they’ve been part of a Submitted payroll, they’ve already been reported to HMRC on the Full Payment Submission and should be terminated by following the steps above.

Note: Deleting an employee is a permanent action and can’t be undone.

1. From the left side bar, select Employees.
2. Select the relevant employee.
3. Click on Actions > Delete employee.
4. Type the first name of the employee in the text field and click Yes, delete employee.

How to terminate an employee in UK Payroll, but not in your HRIS

If your employee is moving to a different country but is still employed by your company, or is moving to a separate entity within the same umbrella company, or changing to a contractor role, you may need to terminate them in UK Payroll but keep them active in your HRIS.

1. From the left side bar, select Employees.
2. Select the relevant employee.
3. Note their Employee ID.
4. From the left side bar, select Settings > select your HRIS.
5. Toggle on Exclude employees and click Add filter.
6. Add a filter for Payroll ID is, and enter the Employee ID.
7. Click Save. The employee will no longer sync to Payroll UK.
8. Navigate to their employee profile and terminate them.

FAQs

I accidentally terminated an employee! What do I do?
Contact Support to remove the termination.

What if the termination date was in the previous pay period?
See Terminate a late leaver.

Will UK Payroll pro-rate the salary of an employee with alternative working patterns?
No. Adjust the basic pay using gross additions or deductions in the payroll draft.

Can I use an alternate method to calculate outstanding holiday pay?
Yes. To do this, leave Entitled yearly holidays and Hereby used blank, and add a gross addition or deduction to the payroll draft.

How do I download an employee’s P45?
Navigate to Employees > relevant employee > Actions > Download P45. For more detailed instructions, see How to download P45s and P60s.

Note: You can only download the P45 once the payroll has been Submitted.