What is the difference between the end of a contract and terminating a contract?

The employment contract between your company and an employee can expire or can be terminated permanently. If a fixed-term contract was agreed on, you can display this in Personio easily by adding such details in the employee's HR information.

Please note that reaching the expiration date of a fixed-term contract is not identical with permanently terminating an employment.


Expiration of an employment contract

If you and the employee agreed upon a fixed-term contract, you can store the information of the contract end date in the Employee profile > HR information.

Please note this serves for your information only; no automations regarding a termination of the employment will be triggered.

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Such details are also displayed in the employee list: please visit Employee > Timeline view to see the end of the employment contract highlighted in yellow.
Since fixed-term contracts usually are renewed, this exception is displayed in Personio. This is also the reason the employee remains listed in your timeline even after the expiration date that was entered in their HR information:

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Should you need to take organizational steps, e.g., to renew the contract or to permanently terminate it, you can easily create reminders regarding the end of employment contracts and assign them respectively.


Permanently terminating an employment contract

Should you wish to terminate an employment contract permanently or in case a fixed-term contract is not to be renewed, you can terminate the employment contract in Personio and set the employee's status to "inactive."
To do so, please visit Employee profile > ... button > Terminate employment:

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You can now choose to permanently terminate the employment contract with your employee:
Please enter the termination date, the type of termination (agreement to terminate, contract expired, employee quit, employer quit, death of the employee, etc.), the date of the employee's last day of work, and a reason for the termination (optionally). Additionally, you can adapt the number of vacation days remaining by the end of the work contract. 

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You can create an offboarding process in Personio to keep track of all organizational steps linked to an employee leaving the company. The offboarding process works just like the onboarding process and uses of identical elements.

By terminating the contract, the employee will not automatically be deleted from your Personio account, of course. However, their status will be set to inactive with the employee data remaining in your account.
You will find the employee's last month in your company highlighted in red in your employee timeline view. Once the last day of the employee has passed, the employee will no longer be counted as an active employee of your company.

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