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Topic: Termination of employment

leaver's details form
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Leaver's details form


Leaver's details form

When an employee leaves, you'll have to run a final salary payment. As it's difficult to claw back any overpayment it's important that you get this amount right. Our leaver's details form allows you to check individual sums owed; the total figure can then be paid following management approval.

Outstanding amounts

It's important to get an employee's final salary payment spot-on for two reasons. Firstly, it avoids any post-employment disagreements over outstanding pay or other amounts owed. Secondly, overpayments are notoriously difficult to recover once an individual's employment has been terminated, i.e. salary or wages can't automatically be adjusted at the next payment date to rectify an oversight.

But, when an employee leaves, it won't just be their final salary that you have to calculate (don't forget, this might not always be a full week or month's pay). You'll also have to consider whether there's any:

  • outstanding expenses
  • commission owed
  • accrued but untaken holiday  
  • payment in lieu of notice due
  • amounts which need to be deducted, i.e. sums that are owed to you, e.g. the employee has taken too much holiday, or to other authorities, such as HMRC.

The amount due will vary from employee to employee. Much also depends on their contract of employment - so always check this document carefully before making any final salary payment.


Filling in boxes 

Our Leaver's Details Form allows you to record all of the above information in one place and calculate the final salary payment. It goes without saying that this amount should be double checked by a senior manager who should also sign the document to approve the payment. Once this has been done, the form can then be forwarded to your payroll department so that the employee's final salary and P45 can be issued. A copy should also be kept on the individual's personnel file - just in case any queries arise at a later date.

Tip. This form is not designed for your employee - it's intended for your personal use. However, if the employee does query their final salary payment, there's no reason why a copy of it can't be sent to them; after all you've got nothing to hide!

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