Termination (AU)

Form ID: (MP.PP.53.00)

The Termination form is opened from the Employee's Current Pay (MP.PP.31.30) form. It allows you to calculate termination payment amounts for an employee whose contract is being terminated in the pay. Once you have entered all details on this form, click Save & Close to close the form and add the appropriate pay items to the employee's current pay.

You can re-open the Termination form to edit the termination details—clicking Save & Close re-generates the termination pay items in the employee's pay. Alternatively, you can click the Delete icon to remove all termination pay items from the employee's pay.

Summary Area

In this area, you can specify the basic details for a new termination.


Element	Description
Batch number	The ID number of the batch that will contain journals relating to the termination.
Pay run ID	The ID of the pay run that the termination occurs in.
Employee	The ID number of the employee being terminated.
Employee name	The name of the employee being terminated.
Created date	The date when the termination record was created.
Created by	The name of the user who created the termination record.
Last modified date	The date when the termination record was most recently modified.
Last modified by	The name of the user who most recently modified the termination record.

Details Tab

This tab displays general information about the termination.

Table 1. Termination Details
Element	Description
Reason	The reason for the termination. The following options are available: Resignation: This option applies to employee-initiated terminations. Genuine Redundancy: This option applies to employer-initiated terminations that meet the ATO definition of Genuine Redundancy or Approved Early Retirement. Dismissal: This option applies to any other employer-initiated termination, e.g. dismissal, normal retirement, contract or probation ended.
Last day of employment	The date when the employee's employment ends. Entitlement accruals cease at this date.
Date when notice was given	The date when the employee gave notice that they were resigning or when the employer gave notice that the employment contract was ending.
Cessation reason	This field was added for STP Phase 2. The following options are available: Voluntary Cessation Ill Health Deceased Redundancy Dismissal Contract Cessation Transfer

Table 2. Employee Details
Element	Description
Tax File Number	The employee's Tax File Number (TFN).
Date of birth	The employee's date of birth.
Age	The employee's age.
Preservation Age	The age at which employees can access superannuation savings, based on the employee's date of birth,and whether the preservation age has been met on the last day of the financial year in which the termination payment is made. This is used in determining the concessional tax rate for ETPs.
Pension Age	The age at which employees are eligible for a age pension, based on the employee's date of birth, and whether the pension age has been met on the termination payment date. This is used in determining the eligibility for the tax-free portion of excluded (genuine redundancy) ETPs.

Table 3. Continuous Service Period
Element	Description
Employee start date	The date when the employee started work at your company, taken from the Employment tab of the Pay Details (MP.PP.32.10) form.
Period of continuous service	A read-only field showing how long the employee's service period lasted in years, calculated from their start date. Excludes periods marked as "Service Break" on the Employment History tab of the Employees (EP203000) form.
Period of continuous service (days)	A read-only field showing how long the employee's service period lasted in days, calculated from their start date. Excludes periods marked as "Service Break" on the Employment History tab of the Employees (EP203000) form.
Service prior to 1 July 1983	Number of days of the employee's service prior to 1 July 1983. Used in tax-free portion calculations. Excludes periods marked as "Service Break" on the Employment History tab of the Employees (EP203000) form.

Table 4. Notice PeriodThe Notcie Period section changes depending on whether the termination was initiated by the emplpoyee or the employer.
Element	Description
Given notice period	The notice period given by the employee/employer, calculated as the difference between the Last day of employment and Date when notice was given, including the day when notice was given.
Minimum notice period	The minimum notice period the employee/employer is required to give. This is based on the Period of continuous service, according to the National Employment Standards. Note: See the Fair Work website for information on how notice periods are calculated.
Override minimum notice period	If the standards do not apply and a different minimum notice period is needed, tick this option and enter a new period.
Total notice period not worked	Employee-initiated terminations only. If the employee's given notice period is less than the minimum required notice period, the difference is displayed here.
Scheduled days not worked	Employee-initiated terminations only. These values are calculated based on the Total notice period not worked and the employee's calendar - for example, if an employee normally works 5 days a week and 7.6 hours a day, and their given notice period is short by two weeks, the values will be calculated as 10 days (2 weeks × 5 days) and 76 hours (10 days × 7.6 hours).
Scheduled hours not worked
Scheduled days in notice period	Employer-initiated terminations only. These values are calculated based on the Total notice period and the employee's calendar - for example, if an employee normally works 5 days a week and 7.6 hours a day, and their given notice period is short by two weeks, the values will be calculated as 10 days (2 weeks × 5 days) and 76 hours (10 days × 7.6 hours).
Scheduled hours in notice period
Deduct from this pay	Employee-initiated terminations only. If the employee gave insufficient notice, the Total notice period not worked can be deducted from their pay - if this is the case, tick this option. A deduction will be added to the employee's pay to reduce it by the appropriate amount - the details of the deduction are displayed below.
Make a payment in lieu of notice	Employer-initiated terminations only. If the employer does not require the employee to work out their notice, the Total notice period can be paid – if this is the case, tick this option. A payment will be added to the Other Termination Payments tab – the details of the payment are displayed below.
Standard rate	The employee's standard hourly rate.
Total deduction	Employee-initiated terminations only. The total amount of the deduction, based on the Standard rate and the Scheduled hours not worked.
Total payment	Employer-initiated terminations only. The total amount of the payment, based on the Standard rate and the Total hours not worked.
Override Total deduction/payment	If you want to change the total deduction/payment amount, tick this box and enter a new amount.
Deduct as pre-tax	Employee-initiated terminations only. Tick this box to make the deduction a pre-tax deduction, or leave it unticked for a post-tax deduction.

Unused Annual and Long Service Leave Tab

This tab shows the pay items that will be generated for the employee's unused Annual Leave and Long Service Leave payments on termination.


Element	Description
Pay Item Description	The description of the unused leave pay item.
Payslip Label	The description of the pay item that appears on employees' payslips.
ATO Reporting Label	The label that this pay item appears under in Single Touch Payroll reporting.
Entitlement Total	The employee's total entitlement amount.
Entitlement Taken	The amount of the entitlement that has been taken.
Entitlement Balance	The remaining entitlement amount, i.e. the Entitlement Total less the Entitlement Taken.
Unit	The kind of unit that the entitlement is calculated in, e.g. Hours.
Rate Description	The description of the rate that applies to the entitlement.
Rate	The numerical rate that applies to the entitlement.
Calculated Amount	The amount calculated for the unused leave entitlement, i.e. the Entitlement Balance multiplied by the Rate.
Override	Tick this box to override the calculated amount.
Override Amount	If you are overriding the calculated amount, enter the new amount here.
Comment	Enter an optional comment for the line (this is usually done in the case of overrides, to explain why the calculated amount was overridden).
Last Modified	The date when this record was last edited.
Last Modified By	The name of the user who last edited the record.

Unused Other Leave Tab

This tab shows the pay items that will be generated for the employee's other unused leave payments on termination.


Element	Description
Pay Item Description	The description of the unused leave pay item.
Payslip Label	The description of the pay item that appears on employees' payslips.
ETP	A read-only indication of whether or not this item is an Employment Termination Payment (ETP). Note: Time Off In Lieu is non-ETP; all other leave types are ETP.
Excluded Payment	If the employee's termination situation means that this item is an excluded payment, tick this box. Excluded payments are genuine redundancy payments as classified by the ATO.
ETP Code	The combination of the ETP and Excluded Payment settings will determine the ETP code, used in the STP reporting of the payment.
ATO Reporting Label	The label that this pay item appears under in Single Touch Payroll reporting.
Entitlement Total	The employee's total entitlement amount.
Entitlement Taken	The amount of the entitlement taken.
Entitlement Balance	The remaining entitlement amount, i.e. the Entitlement Total less the Entitlement Taken.
Unit	The kind of unit that the entitlement is calculated in, e.g. Hours.
Rate Description	The description of the rate that applies to the entitlement.
Rate	The numerical rate that applies to the entitlement.
Calculated Amount	The amount calculated for the unused leave entitlement, i.e. the Entitlement Balance multiplied by the Rate.
Override	Tick this box to override the calculated amount.
Override Amount	If you are overriding the calculated amount, enter the new amount here.
Comment	Enter an optional comment for the line (this is usually done in the case of overrides, to explain why the calculated amount was overridden).
Last Modified	The date when this record was last edited.
Last Modified By	The name of the user who last edited the record.

Other Termination Payments Tab

This tab shows the details of any termination payments that do not related to unused leave.


Element	Description
Payment Type	The description of the pay item. If the termination reason is "Genuine redundancy", a redundancy payment row will be automatically added. The payment amount is calculated using the Fair Work minimum redundancy payment rules. This item can be manually added if the reason is "Dismissal", and will be automatically calculated in the same way. If the Make a payment in lieu of notice checkbox is ticked in the Details tab, a payment item will be added here.
Payslip Label	The description of the pay item that appears on employees' payslips.
ETP	A read-only indication of whether or not this item is an Employment Termination Payment (ETP).
Excluded Payment	If the employee's termination situation means that this item is an excluded payment, tick this box. Excluded payments are genuine redundancy payments as classified by the ATO.
ETP Code	The combination of the ETP and Excluded Payment settings will determine the ETP code, used in the STP reporting of the payment.
ATO Reporting Label	The label that this pay item appears under on the Single Touch Payroll report.
Payment Amount	The amount calculated for the payment type. For payments other than Redundancy payments and Payments in Lieu of Notice, the amount calculated will be 0. Use the override controls below to enter a different amount.
Override	Tick this box to override the calculated amount.
Override Amount	If you are overriding the calculated amount, enter the new amount here.
Comment	Enter an optional comment for the line (this is usually done in the case of overrides, to explain why the calculated amount was overridden).
Last Modified	The date when this record was last edited.
Last Modified By	The name of the user who last edited the record.

Custom Payments Tab

This tab shows the details of any custom termination payments you have set up. Use the Add button in the menu to add a new row, then select the relevant payment from the dropdown list.


Element	Description
Pay Item Description	The descriptive name of the payment's pay item.
Payslip Label	The label that appears on payslips for the payment's pay item.
ETP Code	The ETP code that applies to the payment.
Taxation	How the payment's pay item is taxed.
Payment Amount	The amount of the payment.
Tax Amount/Rate	For payments that use a custom taxation rate or amount, enter the amount here.