Properly offboard departing employees

When an employee leaves your company, there is more to do than just removing them from the roster. Final payslips, asset recovery, status updates, and record keeping all need attention. This guide walks you through deactivating an employee properly in Officaid.

Before Deactivating

Complete these tasks before changing an employee's status:

• Process and pay full months through Team → Payroll. Once an employee is Terminated, they no longer appear on the Payroll list. A final part month is paid with its own payslip afterwards (see Final Payslip below).
• Settle pending claims by approving or rejecting any expense claims awaiting review.
• Collect company assets and update inventory records to show items as returned.
• Review documents to ensure all necessary records are on file.
• Note the departure in the employee's Notes section with date and reason.

How to Deactivate an Employee

1. 1 Navigate to Team from the left sidebar.
2. 2 Click Directory from the submenu.
3. 3 Click on the employee you are offboarding.
4. 4 Click the Edit Employee quick action.
5. 5 Go to the Employment tab.
6. 6 Change Employee Status to Inactive or Terminated.
7. 7 If you choose Terminated, fill in the End Date (the employee's last day) and the End Reason (free text, for example "Resigned").
8. 8 Click Payroll > to save the change. There is no separate Save button.

Choosing the Right Status

When deactivating an employee, choose the appropriate status:

• Terminated for permanent departures like resignation, dismissal, retirement, or end of contract.
• Inactive for temporary situations like extended unpaid leave where the employee may return.

What Happens After Deactivating

Once you change an employee's status to Inactive or Terminated:

• They move from the Active tab to the Inactive tab in the Directory.
• Their seat is freed up for other employees.
• A Terminated employee no longer appears on the Team → Payroll list, including a month that was already processed.
• Their payslips stay on the Payments tab, so pay that is still pending can be marked as paid there.
• Their leave balances are frozen.
• All historical data remains accessible including payslips, claims, documents, and notes.

Final Payslip Considerations

The final payslip may need to include:

• Pro-rated salary for partial months worked.
• Unused leave payout if your policy allows encashment.
• Notice period pay if applicable.
• Final deductions for any outstanding amounts.

A Terminated employee is not on the Payroll list for their last month, so add the final payslip from their profile:

1. 1 Go to Team → Directory and open the Inactive tab.
2. 2 Click on the employee, then click the Add Payslip quick action.
3. 3 Set Pay Period Start to the 1st of the month and Pay Period End to their End Date.
4. 4 Check the Basic Salary. It is pro-rated by working days and shows a Prorated badge. CPF, SHG and SDL are worked out on the pro-rated amount.
5. 5 Add any unused leave payout or notice pay as Additional Earnings.
6. 6 Leave Payment Date blank until the salary is paid.
7. 7 Click Add Payslip to save.

The payslip then appears on the Payments and Contributions tabs, where you can mark it as paid and file its CPF like any other month. See Adding a Payslip for more on the payslip form.

Asset Recovery

Before deactivating, review the employee's Inventory section and ensure all items are accounted for:

1. 1 Go to the Inventory section in the employee's profile.
2. 2 For each item, update the Return Date when it is returned.
3. 3 Set the item's Active toggle to off.
4. 4 Note the condition in the Remarks if needed.

For Fixed Assets, this will update the asset status in the Finance module.

Compliance Considerations

Depending on the employee's nationality and circumstances, additional steps may be required:

• CPF contributions must be submitted up to and including the final month.
• IRAS year-end submissions will include income up to the departure date.
• Foreign employees may require tax clearance before final pay is released.

Frequently Asked Questions

What's Next?

Learn more about employee lifecycle management:

• Employee Statuses Explained covers what each status means.
• Understanding Seats explains how deactivating frees up seats.
• What is Offboarding provides broader context on the exit process.