Terminating an Employee

Terminating an employee in Hopshift removes them from active schedules and future payroll runs while preserving their full historical record for audit and legal purposes. This guide covers the termination steps, what happens to their data, how to handle final pay, and how to manage rehires.

---

Before You Terminate

Check the following before marking an employee as terminated:

• Approve or cancel any pending leave requests for dates after the termination date. Approved leave on dates after termination will remain in records but the employee will not appear in schedules.
• Ensure the final payroll run is ready. If the termination falls mid-cycle, you will need to run a final payroll for the prorated period.
• Collect any outstanding documents (resignation letter, final settlement agreement) and upload them to the employee's Documents tab.

---

How to Terminate an Employee

Step 1: Open the Employee Profile

Go to Employees and find the employee. Click their name to open the profile.

Step 2: Open the Status Tab

In the employee profile left sidebar, click Status.

This shows the current Employment Status and the Terminate Employee button.

Step 3: Click Terminate Employee and Fill in Details

Click Terminate Employee. A confirmation dialog opens. Fill in:

4. Click Confirm Termination.

---

What Happens After Termination

When you confirm a termination, Hopshift immediately:

• Removes the employee from all future shift assignments from the termination date onward
• Removes them from upcoming payroll runs that cover periods after their termination date
• Sets their status to Terminated and hides them from the default employee directory view
• Stops leave accrual from the termination date
• Retains all historical records: past payslips, timesheets, leave history, and documents

---

Final Payroll

If the employee's last day falls mid-cycle, their final pay must be prorated.

Running Final Pay

1. Go to Payroll → New Run.
2. Select the company and the pay period that covers the employee's last day.
3. In the employee list, the terminated employee will appear with a Termination flag showing their last active date.
4. Hopshift automatically prorates their salary to cover only the days worked in the period.
5. Verify the prorated amount and any outstanding OT, leave payouts, or deductions.
6. Finalize the run as normal.

Annual Leave Payout

In Thailand, employees are legally entitled to payment for any unused annual leave upon termination. To add an annual leave payout to the final payroll:

1. Open the final payroll run.
2. Find the terminated employee and click Edit.
3. Under Additions, click Add Item.
4. Select Annual Leave Payout and enter the number of unused leave days.
5. Hopshift calculates the payout at the employee's daily rate.
6. Save and finalize.

---

Thailand Severance Pay

Thai labor law (Labour Protection Act Section 118) mandates severance pay for employees dismissed without cause based on their length of service:

Severance does not apply to employees who resign voluntarily, are dismissed for cause (serious misconduct), or reach the end of a fixed-term contract.

To add severance pay to the final payroll run, follow the same process as Annual Leave Payout above, selecting Severance Pay as the item type.

---

Termination Records

All termination details are stored permanently in the employee's profile:

• Employment tab: shows the full employment history including the termination date, type, and reason
• Payroll history: all past payslips are retained and downloadable
• Leave history: full leave request history is preserved
• Documents: all uploaded documents remain accessible

To access a terminated employee's records:

1. Go to Employees and set the status filter to Terminated.
2. Click the employee's name.
3. All profile tabs remain accessible.

---

Rehiring a Terminated Employee

If a previously terminated employee returns to the company:

1. Go to the employee's profile (use the Terminated status filter to find them).
2. Click Rehire.
3. Enter the new hire date.
4. Update any changed details (position, salary, department).
5. Click Save.

The employee is reactivated with a new employment period. Their previous records (payslips, leave history, documents) are preserved under the original employment period. Leave balances start fresh from the new hire date.

---

Permissions

---

Related

• Employee Management: full employee profile management
• Payroll: running final payroll and payouts
• Compliance: Thailand labor law requirements