Final settlement

Pay someone who is leaving, with unused leave, recoveries and what is still owed.

A final settlement is on the Professional plan, and in the free trial. Only the Admin and Payroll roles can make one.

Please check a settlement with your accountant before you pay it.

Make a settlement

Open the person's Final settlement. See Onboarding and exits. Enter their last working day, and any days of notice they didn't serve. Check the figures, and make it.

This does three things:

It sets their last working day.
It makes a draft pay run of the final kind, for that person only.
It takes encashed leave off their balance. Cancelling the run gives the days back.

A person can have one final settlement.

What it adds up

Pay up to the last day, for their share of the month.
Unused leave, for leave types you allow to be encashed, up to any limit on the type. A day is worth a month's wages divided by 26.
Notice period recovery, for the days you entered, at the same day's worth.
The rest of any loan or advance, all of it.
Income tax at the rate on their record.
One-off amounts you add for the month.

Approve and pay

A settlement works like any pay run: read the warnings, approve it so it goes in your books, then pay and record the payment.

If the deductions are more than the pay, you can't approve it. Change the recovery, or collect the rest another way.

Afterwards

Finish the exit, and make the relieving and experience letters. See Onboarding and exits.