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Important payroll tasks to complete when an employee leaves!

You may be the Robin Hood in your company or a Hitler in managing your employees, the entries and exits of employees is natural and extremely normal! You may have fired an employee or it’s their time to retire or it’s just the competitive need to get a better job, there are some essential formalities to complete when a certain employee leaves your office.

Either you are the one managing the payroll of the employees personally or you have outsourced the same to a payroll service company in London like DH payroll, who are responsible for your company’s regular payroll cycle and the legal formalities, but you have to double check some matters personally when an employee leaves. Failing this, there can be various kinds of issues that your company may face in the future.

Ensure to complete these tasks when your employee leaves!

Letting an employee go off the job may seem a simple affair! It is almost a simple one, almost — if you have a good replacement, and all the legalities are in order. For the former part, you are the best judge of whether the employee was irreplaceable or not. For the latter part, just follow the below guidelines each time you bid a worker goodbye!

o   Written resignation letter — It is important to have the details in paper about the reason of leaving the work. It may be from your side or theirs, but always obtain a signed resignation letter from the employee at the time of leaving.(If possible, get it at least two weeks in advance for better convenience)

o   Request all the current essential details — This includes the present mailing address, contact number or an alternative address wherein you can mail any legal documents left after the employee leaves.

o   Closing the final pay — Most of the companies have the rule of mailing the final pay after a period of two weeks to two months after the employee leaves. You can set your rule according to the law, and calculate the same to send across by cheque or through  e-banking,

o   Discuss tax and benefits — Let your worker be aware that their final pay would be the total remaining after the deduction of necessary taxes. Also, let them know that their previous insurance or health benefits would dissolve as they quit the job.

o   Remove access to secret passwords and passages — If the person was your previous employee, he/she would be having access to all the parts of your premises and also to a lot of confidential data. Ensure that the person does not have such privilege anymore.

o   Retrieve company property —Did you offer them a vehicle or a flat or a gadget as a company employee? It’s time to retrieve all those essentials back (unless your rules say otherwise). Give them a period of a month or two to vacate the property or handover the vehicle to the company. Set the norms, make people aware of the regulations, and stick to the rules.

In this highly competitive professional sphere, changing jobs is pretty common! Be professional in your approach to make the transition a smooth one for both ends.

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