5 Ways to Use HR Software for Terminations - HRIS Payroll Software
Employment Termination

5 Ways to Use HR Software for Terminations

By: Dave Rietsema
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Firing employees is generally not in the top ten favorite tasks for any HR professional, manager, or employer. Unfortunately, most professionals will have to fire an employee at some point in their career. While the hard part is best done face-to-face, the following are a few ways in which HR software can help check all the boxes when it becomes necessary to terminate an employee.

1. Compiling Documentation to Support the Decision

If feedback and evaluations are given regularly, HRIS will automatically create a paper trail that will support a decision to terminate an employee. As long as management carefully documents any warnings relating to performance, behavior, and attendance there will be plenty of supporting documentation for most terminations.

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2. Disabling Access to Sensitive Information

While HR software makes it easy for employees to access information from their own devices, solutions also come with precautions that make it equally easy to disable an employee’s access to that information. It’s important that systems be set up with carefully controlled permissions and passwords from the beginning so that access can be disabled instantly if needed.

3. Providing a COBRA Notice

Employers must provide terminated employees information about continuing health insurance as per the Consolidated Omnibus Budget Reconciliation Act (COBRA). There is a deadline for such notices and penalties may be assessed if employers are deemed non-compliant with the deadlines for administering the information or handling the selections and payments. HRIS can be used to send out the information and to manage the selections.

4. Managing Final Pay, Benefits, and Expenses

Employees must be given final pay, reimbursed for approved expenses, provided information about stocks and 401(k) accounts, and informed of how any other company benefits will be handled upon termination. HRIS can streamline communication and utilize stored information to distribute final paychecks. If necessary, HR software may also provide a checklist of steps that should be taken after an employee has been terminated.

5. Archiving Proper Forms and Records

Having the proper forms in order can do a world of good when terminated employees file for unemployment or accuse an employer of wrongful termination in a lawsuit. HRIS can keep a record of the dates that an employee worked for the company along with any forms relevant to the termination. Having these records easily accessible can help employers to stay compliant with laws and avoid paying unemployment when the termination was justified.

While firing an employee is usually not easy, HRIS can make it more manageable and help to ensure terminations are handled as professionally as possible. When HRIS is used properly, it can keep your other employees’ information safe from terminated employees and protect your organization. HRIS can also minimize the time that must be spent wrapping up loose ends so that your organization is free to focus on filling the vacancy and moving forward.

If you feel that HR software could help your company handle issues such as termination, we can help you select the software that best fits your needs. Visit our free HRIS demos page to get started.