Payroll’s termination role

When a worker is terminated, payroll needs to be kept in the loop
By Annie Chong
|Canadian HR Reporter|Last Updated: 04/25/2006

When it comes to employee terminations, most managers naturally turn to the HR department for information and advice. What they might not know is it’s just as important to check with payroll.

Payroll and HR must work together to ensure all aspects of a termination are properly covered. Unfortunately, there can be misconceptions about payroll’s responsibility when dealing with terminations. HR will often prepare the paperwork after having negotiated with the employee promises of a payment, how to treat the payment and when to process it without realizing the impact it has on payroll.

Sometimes, payroll can receive complex requests from the company that have not been included in the termination agreements. In other cases, the termination agreement information passed to payroll doesn’t include all the necessary information. This can cause headaches for payroll in a number of ways.