A company may hire employees in abundance but simultaneously a company needs to have a proper and simple termination process in order As much as a company invests time and resources in the employee hiring and onboarding process it is equally important to ensure a simple, and faster termination process.
Terminations can happen due to many reasons such as :
- Contract Not Renewed
- Deceased
- Resigned
- Retired
The “Terminate employee” feature of OrangeHRM encompasses all the above-mentioned criteria hence easing the process of termination for the employers.
Go to Employee Management -> Employee List
The user needs to select the employee which they are planning to terminate from the Employee List. Then, navigate to the ‘Job’ Tab of the employee profile, and click the ‘Terminate Employee’ button. The Terminate Employment Screen appears below.
Step 1- The user needs to select the employee which they are planning to terminate from the Employee List.
Step 2- Then, navigate to the ‘Job’ Tab of the employee profile and click the ‘Terminate Employee’ button. The Terminate Employment Screen appears below.
Step 3 – Select a ‘Reason’. from the drop-down of predefined termination reasons.
| Field | Description |
| Reason | Select the reason from the dropdown. Refer to How to add termination reasons to the system |
| Terminate Now | Select for immediate termination |
| Adjust Leave Balance |
If the user has marked the ‘Adjust Leave Entitlements’ checkbox and upon clicking the ‘confirm’ button the ‘Adjust Leave Entitlements’ appears per terminated employee’s leave type and leave balance. |
| Date | Select the resignation date. When terminating by specifying the termination date, the system does not allow setting a date prior to the Joined Date or Rehire Date of the current service. |
| Time | Select the time of the employee's resignation. |
| Time Zone | Select the time zone |
| Note | Add the notes |
Step 4 – Click ‘Confirm.’ Then the employee is removed from the current employee list.
| Field | Description |
| Leave type | This field shows the available leave type for that particular employee. |
| Entitlement | This field shows the entitled days for the leave. |
| Adjust To | This field allows adjusting the entitled days. Ex: If an employee has 12 days of entitlements for a particular leave type admin user can adjust the entitlements when terminating the employee |
Step 5- Fill in the ‘Adjust To’ field and click ‘Save'
If the termination date is a future date, then the system does not do any changes to the profile. The employee has access to the system until the terminated date is reached. On the day of the termination, the system terminates the employee and disable the employee user account.