How to process a leaver

13th Aug 2019
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When an employee leaves a company, there are very important things that need to be done. 

No, we are not talking about organising leaving drinks – okay, that too – but also about making sure that all the necessary paperwork is processed. 

The employer and employee will need to agree on the leaving date, which you will need to calculate their final pay. Besides their salary, you will also need to take into account all their remaining holiday pay, bonuses or redundancy pay, if applicable. 

When an employee leaves, HMRC is notified with the last Full Payment Submission you send, which means you no longer need to submit a P45 to HMRC. However, this also means the employee’s leave date needs to be entered in the payroll software before their final pay period is finalised, so that the date of leaving is included in the Full Payment Submission.

Processing a leaver in BrightPay

You can mark a current employee as a leaver in BrightPay by following these steps:

  1. Select the employee

  2. Enter the employee's final pay

  3. Select ‘Finalise Payslips’ on the menu toolbar

  4. Click the ‘Edit’ button next to the employee’s name and enter the employee’s leave date

  5. Click ‘Save’ and the ‘Leaver’ indicator will now show next to the employee’s name

  6. Click 'OK' to finalise the employee's payslip

What happens next?

Once you’ve included an employee’s leave date, they will no longer be included in future payroll periods.

The employer needs to provide the leaver with a P45 for their own records. You can print this document from the menu toolbar, selecting the employee. Depending on whether the copy is for the employee or for the employer to keep on file, you can choose to print different parts of the P45:

Finally, for your peace of mind, a copy of all the ex-employee’s relevant information, including their payslip history, remains stored in BrightPay in case you need to see it at a later time.

BrightPay makes payroll easy. Try it for 60 days for free with full functionality.