Contractor Exit

If a contractor exits from your organisation, whether it is due to termination by the employer, resignation, death, or due to some disabilities, you’ll have to Initiate Exit Process for that in Zoho ERP.

To initiate exit:

Go to People on the left sidebar.
Navigate to Contractors tab on the module bar on top.
Select the contractor for whom you want to initiate the exit process.
Click More icon and select Initiate Exit Process.
In the Contractor Exit Details page, you’ll have to enter details regarding the exit.

Field	Description
Last Working Day	Enter the last working day of the contractor.
Reason for Exit	Reason the contractor is leaving the organisation.
Personal Email Address	The contractor’s personal email address in which you’ll be sending the full and final settlement payslip.
Notes	Internal comment for initiating the exit process.

Select when you want to settle the final pay on a given date.
Select the final settlement date.
Click Proceed after entering all the details in the respective fields.

Full and Final Settlement Payroll

You can process final settlement payroll once you’ve initiated the exit process for your contractors. Once you initaite the exit process process and proceed with the full and final settlement payroll, you can add or import other contractors for whom you’ve initiated exit. This way, you can process full and final settlement for multiple contractors.

Process Final Settlement Payroll

Once you’ve initiated the exit for a contractor, you’ll be redirected to the Final Settlement Payroll page, where you can:

Enter the Organisation’s Payable Days and contractor’s Payable Days for that particular month.
Enter the LOP (Loss Of Pay) days, if any.
Enter Additional Earnings for the contractor, if any. Additional earning is an earning other than the contractor’s regular salary.
If any amount has to be deducted from the contractor’s salary, you can enter it under Deductions by clicking Add Deduction.
You can enable notice pay by checking the option under Notice Pay for the contractor who are in their notice period.
If the organisation owes the contractor, select Payable and if the contractor owes the organisation, you can select Receivable.
Enter the amount in the Payable Amount or Receivable Amount field.
If you want to enter any note in the final settlement slip, you can add them under Notes.
Click Save and Continue to proceed.
In the following page, click Submit to proceed with the exit. If you’re a user who has approve access then click the Submit and Approve button.

After getting the pay run approved, you’ll have to record payment in the Pay Runs page. Here’s how:

Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
Click View Details & Pay .
Click Record Payment on the top right corner of the page.
Select the payment date and check the Send payslip notification to exited contractors option, if you want to send payslip notification to the contractors.
Click Confirm to record the payment.

Process Final Settlement For Multiple contractors At Once

If you’re looking to terminate multiple contractors simultaneously, you have two methods to achieve this: importing data or manually adding contractors to the final settlement payroll.

Method 1: Importing Data for Bulk Termination

Note: You can process bulk termination of contractors by importing data in the correct format.

Click People on the left sidebar and select Contractors.
Click the More icon on the top right corner and select Import Data.
Choose Contractors’ Exit Details as the type of import.

Note: Download a sample .csv or .xls file to understand the correct format.

Ensure your bulk termination file aligns with the correct format.
Click Next.
Ensure that Zoho ERP Fields are correctly mapped with Import File Fields.
Click Import.

After importing the file, review the details in the bulk and final settlement payroll and proceed with processing it.

Method 2: Manually Adding contractors to Bulk Final Settlement Payroll

Click People on the left sidebar and select Contractors.
Select the contractors for whom you want to initiate the exit.
Click the More icon and select Initiate Exit process.
Enter the exit details and select pay as per pay schedule as the option for when you want to settle the final pay.
A final settlement payroll will be created.

Note: Do not process the final settlement payroll until you’ve added all other contractors to it for bulk termination.

To add other contractors to the final settlement payroll:

Initiate the exit process for each additional contractor.
Select pay as per pay schedule as the option.

Once done, these contractors will be included in the final settlement payroll, which now becomes a bulk final settlement payroll.

With these steps, you can efficiently handle bulk termination and streamline the final payroll process for multiple contractors.

Filter Exited contractors

You can filter exited contractors using the Exited contractors filter in the contractors page. To do that:

Go to People on the left sidebar.
Navigate to Contractors tab on the module bar on top and click the filter dropdown on the top-left corner.
Select Exited Contractors from the dropdown and you’ll be able to view all the contractors who exited from your organisation

You can also filter contractors based on their reason for exit. Here’s how:

Click the Reason for Exit dropdown on the top left corner.
Select the exit type.

Revert Exit Process

You can revert the exit or termination process for contractors for whom the final settlement payroll has not been processed. Here’s how:

Go to People on the left sidebar.
Navigate to Contractors tab on the module bar on top and click the filter dropdown on the top-left corner.
Select the Exited Contractors filter.
Select the contractors for whom you want to revert the exit process.
In the Overview page, click the More icon and select Revert Exit Process.

Note If you have already processed the final settlement payroll, you will not be able to revert the exit process. You can choose to rehire the contractors instead.

In the following popup, enter the reason for reverting the exit process and click Proceed.
After clicking Proceed, you’ll be redirected to the contractor’s Profile. You’ll have to enter the salary details of the contractors again in the Salary Details page.