How to Terminate an Employee

Terminating an employee in Pento

To terminate an employee in Pento, follow the below steps:

1. Go to the Employees in the left hand sidebar
2. Click into the employee you wish to terminate
3. To the right of the employee name and tabs, you will see a button with 3 dots. Select this and you will see the following options:
   
4. Select Terminate Employment from the list and enter the appropriate leave date
   
5. Once you have entered the leave date, the following Modal will appear:
   
6. You should then enter the following basic information:
   • Termination date
     The date you wish to terminate this employees employment.
   • Send P45 to
     Enter an alternative email address to send the P45. For example a personal email address.
   • Outstanding Holiday entitlement
     Select if any outstanding holiday pay should be included in pension calculations.
7. Once entered you should then enter any specific holiday entitlement information.
   • Work days per week
     You can leave this blank unless the employee works part-time.
   • Entitled Yearly Holidays
     Please enter the Employee's annual holiday entitlement.
   • Hereby Used
     Please enter the amount of days the Employee has taken in the year so far.

Pento will automatically calculate if the employee is entitled to any outstanding holiday pay based on the information you provide. This will be shown in the Outstanding holidays field, and the amount due will be displayed on the Entitled Holiday Pay row.

Entitled Holiday Pay is calculated as follows: Annual Salary / 260 x outstanding holidays. 

E.g. In this example: £18,137.59 / 260 x 2.5 = £174.40

Pro-rata adjusted salary

Pento automatically pro-rates the employee's salary to the leave date, the calculation is based on the Day rate method defined in your Payroll Settings (Payrolls → Pay Schedules)

In this example, the pro-rated salary is calculated as follows:

Monthly Salary / working days in August x days worked

E.g. £1,511.42 / 22 x 5 = £343.51

Once you have confirmed the termination, the employee's payslip preview will look like this: 

Tip – Hovering on the '?' will allow you to see the dates Pento has pro-rated the salary to.

Loom Video demonstrating terminating an employee

Points to Note

Alternative working patterns

Pento does not currently consider alternative working patterns when pro-rating salary - you will need to adjust the basic pay using the Gross Addition/Deduction pay item in the payroll draft.

Alternative methods for calculating Outstanding Holiday Pay

If you want to use an alternative method to calculate Outstanding Holiday Pay, you can leave the 'Entitled Yearly Holiday' & 'Hereby Used' blank - You will need to add a Gross Addition/Deduction pay item in the payroll draft.

Accidental employee termination

If you accidentally terminate an employee, you will need to contact support who can remove the termination for you.

The termination date is in a previous month

Please refer to our help article Backdated Terminations

Downloading Employee P45

If you need a copy of the P45 for your records, you can download a copy on the Employee's profile. To the right of the employee name and tabs, you will see a button with 3 dots. Select this and then select the Download P45 option.