I have been asked about an employee that was terminated in MYOB and how to make them active again, so I thought I would share this in the blog for the benefit of all readers.

Once an employee has been terminated, it is important that all accruals for sick leave, holiday leave and long service leave in some cases are removed.   The termination date should be entered, and once this has been done, a zoom arrow appears that will allow access to the termination notes section.   This section is very important to complete because it is a requirement under the act so that the employer responsibility to record this information has been met.   

The termination date field element is shown below, before and after the entry of the termination date.

Once the termination the date has been entered, a zoom arrow will appear to the left of the window.   Click on this zoom arrow to open the termination details window, see below.

Enter the termination details as per the legislative responsibilities of the employer, this is required information.   Because this employee has been terminated they will not appear in the employee list when processing wages, and nor do you want that.

It has been suggested that other software does not do this, and if this is the case then I would suggest in my humble opinion, that the software would be seriously lacking, because the termination date is part of the responsibilities of the employer to keep records of this along with the reasons the termination, method of termination and who the employment was terminated by.   Once this is done it would be undesirable for further wages to be processed to the employee for a whole variety of reasons, security being one.

The solution to re-instating the employee and continuing to pay them is quite simple, and can be done two ways.

The First

The first and most desirable option, is to simply create a new card for the same person.  The old card will not appear on any wage processing list, only the second one.  The reason this is the far preferable option is that you can produce two completely separate payment summaries for each period of employment, rather than try and meld these two together.  With termination all entitlements would have been paid out with sick leave becoming non-payable, with all entitlements commencing again from scratch.

This option simply requires the creation of a new employee card again in the same way that you would start a new employee.

The Second

The second and least desirable option is to remove the termination date from the employee card and continue to pay wages.  This option will create you a number of challenges as you move forward in terms of start and termination dates for each term of employment, just to name one, I am sure that you'll be able to think of others.

I hope this helps to explain things a little better and makes it clearer in your mind.