Use the Separate Employee process to update an employee’s status when their work ends at one or more legal entities or locations. This process, available from the Action menu on the employee record, removes the employee from future pay runs, records separation details for compliance, and keeps payroll data accurate.
When an employee is associated with multiple payroll companies, they can be separated from one or all of them at the same time. After separation, payroll records and job histories are updated automatically, and rehire eligibility can be managed through the Rehire process. The Rehire Date, not the original Hire Date, controls job effective dates and future separations.
Security
Only users with the following permission will be able to separate employees:
Labor
Employees
Separate Employee
Separate an Employee
Click steps to expand for additional information and images.
1) Open the Action menu on the employee record.
2) Click Separate.
3) Choose the legal entities for the locations the employee will be separated from.
If there is only one legal entity, it will be selected as the default.
If there are multiple legal entities, checkboxes will appear.
4) Mark employee as inactive.
An employee’s active status affects where the employee appears in the system.
When all legal entities are selected, the system automatically marks the employee as inactive. The inactive status can be changed if the employee needs to remain active.
Marked inactive: The employee is removed from active scheduling, payroll processing, and general employee lists.
Not marked inactive: The employee may still appear in payroll, scheduling, and access-related areas, even though they are separated.
If an employee is not marked inactive, they may continue to appear in payroll, scheduling, and access-related areas even after separation.
When unchecked a warning callout appears:
5) Enter the Separation type.
The Separation type explains why the employee’s employment ends. This information supports reporting, compliance, and internal record-keeping.
Separation types include:
Voluntary: The employee chooses to leave the organization, such as a resignation or retirement.
Involuntary: The organization ends the employee’s employment, such as a termination or layoff.
Select the separation type that best reflects the reason for the employee’s departure. This selection does not affect payroll calculations directly but is used for tracking and reporting.
6) Select if the employee is eligible for rehire.
The Rehire eligibility setting controls whether the employee can be rehired in the future.
Eligible
The employee can be rehired using the Rehire process. Their historical payroll and job data remain available.Not eligible
The Rehire action is disabled and the employee cannot be rehired unless the separation record is updated.
This setting does not delete employee records. It only controls whether the system allows the employee to be rehired later.
7) Enter the Separation date.
Must be on or after the employee’s most recent job start date. Dates before that are disabled.
8) Enter the Notice date. (Optional)
The Notice date records the date the employee provided notice of separation.
Add a notice date when the employee gives advance notice before the separation date or when company policy requires tracking notice periods. The notice date supports reporting and record-keeping only and does not affect payroll calculations.
9) Add notes. (Optional)
10) Upload separation documentation. (Optional)
Separation documentation stores files related to the employee’s separation, such as resignation letters, termination records, or other required forms.
Upload separation documentation when company policy, legal requirements, or compliance processes require written records. Uploaded files remain associated with the employee record for audit and reference purposes.
11) Click Next.
12) Manage active deduction end dates. (Optional)
The active deduction end date settings control how employee deductions are handled after separation.
Available options include:
End on separation date: Stops deductions on the employee’s separation date. Use this option to prevent deductions from continuing after employment ends.
Continue indefinitely: Keeps deductions active with no end date. This option is typically used only when deductions must continue after separation.
Set custom end date: Ends deductions on a specific date you choose. Use this option when deductions should continue temporarily after separation.
Selecting an option is optional. Deductions continue based on the existing configuration if no changes are made.
13) Click Next.
14) Review the separation summary.
15) Click Complete Separation to finalize.
