Terminating Employees

Terminate an employment in Employee Central when an employee leaves the company. The employment is terminated in the system and the employee is set to Inactive status.

In Position Management, employees can be terminated from the Position Org Chart, specify when and why the employee is leaving, as well as any other relevant information such as the date of their final salary.

When saving the termination through the user interface using Centralized services and once the employee's employment has been successfully terminated, these follow-up processes are triggered and run in the background, in the following sequence.

• Hierarchy Adaptation. If the position hierarchy is the leading hierarchy, you can opt to transfer direct reports according to the position hierarchy. The transfer of direct reports will run in the background if the setting Reassign Direct Reports According to Position Hierarchy on the Termination UI is set to Yes-Always. Otherwise, the transfer will run synchronously.
• Synchronization between Matrix Relationships and Job Relationships. When a job relationship manager is terminated, the relevant job relationships are transferred to another manager. If you terminate an employee that has job relationships assigned, the default will move everyone to the upper manager. Additionally, the drop-down list has the option to select a different manager or terminate all relationships. To choose for each relationship, an individual transfer you can select Individual Transfer and decide for everyone different.
• To Be Hired status adaptation for the position.
• Deactivate position.

If an error occurs in one of these processes, an email will be sent to the user who initiated the action, and an admin alert is created for that process. The subsequent processes will not be executed. When you retrigger the admin alert, the process that originally failed will be triggered again, as well as all subsequent processes.

If the Position Hierarchy is the leading hierarchy, you can opt in to transfer direct reports according to position hierarchy.

If the employee being terminated is a manager, you have the option to transfer their direct reports according to position hierarchy. This means that the direct reports to be transferred because a manager is being terminated will report to the next available manager according to position hierarchy. This presupposes, however, that all direct reports to be transferred according to position hierarchy as well as the manager must be assigned to a position. In addition, the employees' supervisor must be in sync with position hierarchy. Otherwise, a manual correction is needed.

You can make this configuration by going to Position Management Settings → Hierarchy Adaptation tab, and choose Reassign Direct Reports According to Position Hierarchy on Termination Screen. In any case, only the direct reports are transferred, not the positions in the hierarchy. At this time, there is no option to transfer positions like this. If you want to transfer them, you have to do so manually or by using mass change of positions.

The following options will be available to decide on the transfer of direct reports upon termination of a manager:

• No: This is the default option. When we terminate a manager, the Transfer Direct Reports section does not include the option to transfer according to position hierarchy
• Yes - Optional: The transfer of direct reports according to position hierarchy will be set as default in the Termination screen, but user can accept this default or change it.
• Yes - Always: The Transfer Direct Reports section in the Termination screen will be hidden, and user will be only informed that the direct reports were reassigned based on the position hierarchy.

In the image below, the Yes - Optional option is selected, so we can see the option to transfer direct reports based on the position hierarchy, and the usual options to transfer direct reports to upper manager, another manager or select individual transfer of direct reports. Additionally, there is an option to decide on how to Transfer Job Relationships whenever the employee being terminated has matrix positions which would impact these relationships if the position becomes vacant. More information about the job relationships will be explained within this section.

From this same example, note that the Everyone to upper manager is purely a user-based decision, independent of the position hierarchy, whereas Everyone according to position hierarchy selects the incumbent of the next available position based on the position hierarchy.

Other considerations:

• If you use Automated Daily Hierarchy Adaptation, any transfers you make outside of the position hierarchy are corrected by the job on the next run date.

• The transfer according to position hierarchy respects the threshold defined in the Threshold for Running Adoption of Reporting Line and Job Relations as a Job, available in the Hierarchy Adaptation tab in Position Management Settings.

• If the position to which the direct reports are being transferred has more than one incumbent, the direct reports are assigned to the first incumbent the system finds. You don't have the option of selecting one. Note also that the position the manager is leaving remains in the position organization chart, even though it is now empty. The position organization chart is not modified.

• If an incumbent of a matrix position is being updated, the job relations for the employees of the matrix manager are not updated.

• When you select the option Everyone according to position hierarchy, the Transfer Event Reason set in Position Management Settings is used unless event reason derivation is enabled.

When an employee is unassigned from a position that is referenced by matrix relationships of other positions, such as in the Termination event, there are some possible options in Position Management Settings → Matrix Synchronization → Synchronize Job Relationships for Vacant Matrix Positions to determine how the system should behave in this case:

• If the setting is set to No, the corresponding job relationships of the incumbents which refer to the employee who left the position are not updated. In case of mass positions (where multiple incumbents are allowed), the job relationships are synchronized so that they refer to another incumbent of the position. The system chooses this incumbent randomly.
• If the setting is set to Delimit Job Relationships, the corresponding job relationships of the incumbents which refer to the employee who left the position are delimited. In case of mass positions, the job relationships of the employees who had this employee assigned as job relation manager are updated with another employee assigned to this matrix position. The matrix position allows multiple incumbents
• If the setting is set to To Incumbent On Next Higher Level Position, the corresponding job relationships of the incumbents which refer to the employee who left the position are updated with the next-higher level incumbent of the position from which an employee was unassigned. In case of mass positions, it will take an employee assigned to the position to update the job relationships.

When you terminate an employment, you also have the option to deactivate the employee's position if this is required. In Position Management Settings → UI Customizing tab, you can set Show "Deactivate Position" Option in Employee Termination Screen to Yes, in order to enable this field in the Termination User Interface.

If you don't want this option to be available, go to Position Management Settings → UI Customizing and set Show 'Deactivate Position' option in Employee Termination Screen to No.