Making an Employee a Leaver

AN EMPLOYEE SHOULD ONLY BE MADE A LEAVER AFTER THEIR FINAL PAY RUN IS COMPLETED.

LEAVER PAY RUNS SHOULD BE DOWN IN SEPARATE PAY RUNS

HOLIDAYS REMAINING CAN BE A NEGATIVE, IN THIS CASE THEY SHOULD BE A DEDUCTION - EXACTLY THE SAME PROCESS, EXCEPT NEGATIVE HOURS

FOR 2022 LEAVERS AN ADDITIONAL 55.3HOURS MUST BE DEDUCTED OFF THE ALLOWANCE

Steps to ending an employee's employment in Xero...

Calculate the number of holidays an Employee has left

Ask Richard or Robert about any outstanding deductions an employee has

Do a Pay Run for only the leaver

When doing the Pay Run add the

Holidays Left (or Deduct over holiday allocation)

Any other deductions

End the employee's employment

Generate the employee's P45

Calculate the number of holidays an employee has left

Steps...

Use GOV website use the calculator to find out the number of holidays the employee is due for the period they have worked of the holiday year

Total the holidays an employee has used in the holiday year

Deduct the total holidays from the remaining holiday allowance

Use GOV website use the calculator to find out the number of holidays the employee is due for the period they have worked of the holiday year

Using the calculator at Calculate holiday entitlement - GOV.UK (www.gov.uk) enter the following information

Year Start Date - This is always the first of January

Employee Start Date (if within this holiday year)

Employee Leave Date

Employee Hours Per Week

Employee Days Per Week

The calculator will tell you the number of hours the employee is entitled to.

Total the holidays an employee has used in the holiday year

Total any holidays the employee has had in this from the entitled to calculation.  You can get a total calculation from the employee's screen and the "Time Off" section.

Add up all the hours in the time off section up to the point of the employee's end date.

In the example below the employee has had 20 hours total paid Holiday(In this example the employee's last date is the 1st of June 2022)

Remember to add on business holidays to this amount, they are not automatically added to this list

Deduct the total holidays from the remaining holiday allowance

Equation to be used: Total remaining holidays to be paid = Remaining allowance = holidays used

Example in use

Leaver started in 2011, leaving on the 1st of June 2022.

Leaver Start Date

01/02/2011

Leaver End Date

01/05/2022

Holiday Allowance (Using Calculator)

93.3

Holidays Allowance Used

20

Business Holidays Used

16

Total Allowance Used

36

Holidays Remaining

57.3 = round up to nearest hour = 58

End the employee's employment

After finishing the