This article describes the effects of terminating employment in Personio and how to manage terminations.
Note:
A termination of employment is not the same as setting a date for the attribute Contract ends. For more information, read the article Manage Fixed-Term Contracts with the Contract Ends Attribute.
What is the Termination of Employment?
The termination of employment ends the employee lifecycle in Personio. Unlike the preset attribute Contract ends, which refers to the last day of employment set in the contract, it implies a permanent termination of employment rather than the end of a fixed-term contract. As such, the termination of employment applies to both fixed-term and an open-ended employment contracts in Personio. Functionalities connected to a set termination of employment enable you to take organizational steps before the termination date to ensure points like absence management and offboarding are taken care of.
Effects of a Termination of Employment
Prorated Vacation Entitlement
A set termination has a direct effect on the employee's vacation entitlement. The vacation days for the year in which the termination takes place are calculated proportionally based on set accrual policies.
Tip:
When setting a termination date, you can adjust the amount of vacation days based on a prorated calculation offered by Personio.
Prorated Salary Calculation for Exits Within the Month
If the termination date falls within the month, the salary will be prorated according to the settings for Prorate salary calculation under Settings > Payroll > Salary & Payroll > General. For more information, read the article Prorate Salary Calculation.
Display in the Preliminary Payroll
The employee is excluded from the preliminary payroll after the month of the termination date, unless there is any salary payment or a change of employee data. These are still displayed in the preliminary payroll for up to 3 months after termination.
Highlight in the Timeline View
A termination is highlighted in red in the timeline view under Employees > Timeline view. Since the termination is a permanent action, the employee will no longer be listed after their expected departure from the company.
Employee with a set termination date in the Timeline View.
Status Updated to Inactive
The following day after termination at 00:00, the employee's attribute Status will be set from Active to Inactive. This has the following effects:
- The employee can no longer log into Personio.
- The employee no longer appears in the Orgchart view.
- The employee can only be found via the search bar by, and is only displayed to employees with viewing rights for the employee's HR information in the Employee list.
- The employee will no longer be included in your Personio plan.
- The employee will continue to appear in historical analyses and reports.
Note:
These effects only apply if the employee is not deleted from Personio. For more information on this, read our article How Do I Delete An Employee?
How to Terminate Employment
Example of a set termination in Personio.
To terminate an employee, follow these steps:
- Go to the employee's Profile and click on the action button
on the upper right. - Click on Terminate employment.
- Enter the Termination date and the further details Notice announced, Last day of work, Type of termination and Reason.
- Check and optionally adjust the prorated vacation calculation under Accrued days for each absence type with an accrual policy.
- Click on Terminate and confirm by clicking on Yes, terminate employment.
- The employee's last day of work will now appear under Employee profile > Personal info > HR information > Status as Employment end date: DD.MM.YYYY.
Note:
To see the Terminate employment option, employees need to be granted editing rights for the section where the Status attribute was allocated (Personal data, HR information...) through Settings > People > Employee Roles > Access rights.
Tip:
To keep track of all the organizational steps associated with the departure of an employee, you can set up an offboarding process in Personio.