Terminations FAQs
When should I pay a Termination Pay?
The termination pay should be paid when the next payroll is due, unless specified in the contract that it will be paid at a different time e.g. on their last day of work.
My employee is not coming back from Parental Leave, what should I do?
If you're terminating an employee who is not coming back from parental leave, it's best to call our Customer Support team on 0800 10 10 38 or email helpdesk@smartly.co.nz to ensure the employee's annual leave entitlement is correct before terminating.
I need to terminate my employee, but their leave balance looks incorrect
Please call our Customer Support team on 0800 10 10 38 or email helpdesk@smartly.co.nz and they can check if the employee's set up and payments are correct to ensure the correct termination pay is paid.
Should I pay my employee, who is terminating, any upcoming public holidays?
If an employee is terminating right before a public holiday, you'll need to check if they have any earned leave (entitled leave under the Holidays Act).
If the employee was on paid annual leave, would their earned leave (using their normal /average hours per day) stretch across the public holiday? If it would, they are entitled to be paid for the public holiday (statutory leave taken).
To check an employee's earned leave, follow the steps below.
1. Go to Employee details and highlight the employee.
2. Go to Leave balances.
3. Subtract the Accrued leave from the Balance. This will give you the Earned balance.
2.34 Balance - 0.42 Accrued = 1.92 weeks available Earned leave.
Example: Joe is terminating on 24/04/2024. His Earned Leave would stretch across the public holiday (ANZAC Day on 25/04/2024). Joe needs to be paid for his hours worked, and any allowances if applicable. He would be paid ANZAC Day as Statutory Holiday Taken.
Once the above has been entered, you can then carry on the termination as normal.
How do I enter In lieu of notice for my employee who is terminating?
Some employers may choose to pay an employee in lieu of notice, rather than the employee working through their notice period.
If you need to enter an extra payment for in lieu of notice, this can be added as a one-off payment in Smartly.
1. Go to Run a pay.
2. Double click on the employee.
3. Now click on Add one off payment.
4. Enter the details of the one off payment. The employer needs to determine on their end if the payment should be included in leave earnings or not.
5. Now click Ok.
