Settle a leaver's final pay

When someone leaves, the final settlement gathers everything owed either way into one statement. It becomes a settlement run that you review, approve and pay like any payroll run, and it prints with signature lines for both sides.

Before you start

• You need Salaries and payroll and the Payroll app.
• Check the person's file: joining date, contract type and pay. Plan any loans still owed. See Give loans and salary advances.

Steps

1. Open HR → Payroll → Final settlement, or follow the link at the end of an offboarding checklist.
2. Pick the person in Name and set the Last working day.
3. Choose Why the service ends: Resigned, Ended by the employer (no misconduct), Contract ended, Mutual agreement or Dismissed for misconduct.
4. Check the Contract: As on the file, or open-ended or fixed-term.
5. Type the Notice days and choose whether The notice is paid in lieu or deducted.
6. If items were not returned, type their value and Which items.
7. Select Work it out and read each line with its amount.
8. Select Make the settlement run. The person's file is marked left on that day, and the run opens as a draft.
9. In the run, change any line with a reason, then review, approve and finalise it. See Approve, pay and lock a payroll run.
10. Print the Settlement statement from the run page with your browser's print, and have both sides sign it.

What the settlement includes

• the salary from the end of the last paid period to the last working day;
• unused annual leave, at the daily basic wage (basic ÷ 30);
• the notice, paid in lieu or deducted;
• the end-of-service amount your country's rules give, if any;
• loans and advances still owed;
• the value of items not returned, suggested from the assets register.

Good to know

• The end-of-service figures (notice days, compensation, gratuity) differ by country and come from a dated table on HR → Payroll → Payroll rule tables → End of service. How they work is explained in Egypt payroll and UAE payroll.
• Every figure is a published figure to confirm with your accountant, not legal advice. The assumptions print under the statement.
• The suggested notice comes from the table; the notice line uses the days you type.
• The items-not-returned line is a suggestion you can change or remove. See Track items issued to staff.
• A settlement run never collides with the normal payroll runs of the same period.
• In a UAE organisation, End-of-service estimate on the person's file shows the gratuity for a leaving date before you settle, labelled as an estimate.
• After the settlement, think about the leaver's personal data. See Export or remove a leaver's personal data.