GAP 101.3, Termination of Employees

  1. General
  2. Completing the Termination iForm
  3. Termination Procedures for Nonexempt Staff
  4. Termination Procedures for Exempt Staff and Faculty

I. GENERAL

This procedure explains the process to follow when individuals terminate their employment with Duke University and Health System. It is important that departments follow this procedure along with applicable Personnel Policy guidelines to ensure that individuals receive the appropriate pay in his/her final pay from Duke University or Health System. In addition, a timely termination will ensure access to all systems, buildings, etc. is restricted according to the termination date.

Questions relating to termination policies should be directed to Staff and Labor Relations. Questions relating to transactional procedures should be directed to Corporate Payroll Services.

II. COMPLETING THE TERMINATION IFORM

The department should complete the termination iForm on the same or following business day after an employee gives notice of intent to terminate employment or based upon the planned last day worked for involuntary terminations. The termination iForm is routed appropriately based upon the type of employee and departmental specific approvals. Once it is approved it will interface with the payroll system.

Guidelines for completing the termination iForm are available on the Corporate Payroll Services website.

III. TERMINATION PROCEDURES FOR NONEXEMPT STAFF

A. RESPONSIBILITIES OF SUPERVISORS WHEN AN EMPLOYEE TERMINATES:

  • Determine the reason for the termination.
  • Obtain a written, signed and dated statement of the reason for the termination from the employee.
  • Notify the Department Payroll Representative so he/she can initiate the termination iForm. Supervisor should provide updates regarding last day worked, reason for the termination as well as the official termination date.

B. RESPONSIBILITIES OF DEPARTMENTAL PAYROLL REPRESENTATIVE WHEN AN EMPLOYEE TERMINATES:

  • Complete the Termination iForm. See the guidelines for processing termination iForms on the Corporate Payroll website for more information. Please note that the iForm requires the preparer to confirm that the department has obtained a written letter of resignation.
  • Follow all applicable steps outlined in the Terminations Checklist.
  • Consider the following for those employees with secondary positions:
    • If a nonexempt employee is being terminated from a primary job and the employee has an active secondary position, contact the secondary department’s payroll representative to notify them of the termination.
    • If the secondary department would like the employee to continue the work being performed in the secondary position, that department should initiate a transfer iForm, moving the employee to a primary position in the department. This transfer iForm must be initiated prior to the primary department beginning the termination iForm.
    • If the primary department processes a termination iForm in error, the secondary department will be required to complete a Hire iForm.
    • If both the primary and secondary positions should be terminated, the department payroll representative in the primary department should process the termination iForm. The secondary department should complete the Secondary Position Form to delimit the position in alignment with the last day worked.

C. CALCULATION AND DISTRIBUTION OF THE FINAL PAY FOR NONEXEMPT EMPLOYEES:

  • All accrued vacation/unused discretionary holidays/PTO due the employee will be paid automatically once the termination iForm has interfaced with the payroll system. Please use the biweekly payroll schedule for the pay period in which time will pay.
  • Please note: No payment for accrued vacation/PTO and discretionary holidays can be made until the termination iForm has been processed. Manual checks cannot be processed for accrued vacation/PTO and discretionary holiday payouts.
  • If the employee is currently set up for direct deposit, his/her final pay will be deposited into the corresponding bank account.
  • Biweekly employees will receive the final payroll check/voucher for hours worked and/or vacation/PTO accrual, and any discretionary holidays through the U.S. mail. The check/voucher will be sent to the home address in the payroll system as of the termination date.
  • As of 12:00 am on the day after an employee’s termination date, the employee will be considered a former employee and will no longer have access to Duke@Work.
  • Departments are encouraged to remind employees the importance of maintaining an accurate home address in the payroll system to ensure W-2s are mailed to the appropriate home address. Employees can update home addresses after termination by notifying their department payroll representatives or by completing the Terminated Employee/Student Address Change Form.

IV. TERMINATION PROCEDURES FOR EXEMPT STAFF AND FACULTY

A. RESPONSIBILITIES OF SUPERVISORS WHEN AN EMPLOYEE TERMINATES:

  • Determine the reason for the termination.
  • Obtain a written, signed and dated statement of the reason for the termination from the employee if possible.
  • Notify the individual responsible for initiating the termination iForm of the termination and providing specific information about the termination date.

B. RESPONSIBILITIES OF DEPARTMENTAL PAYROLL REPRESENTATIVE WHEN AN EMPLOYEE TERMINATES:

  • Complete the termination iForm. See the guidelines for processing termination iForms on the Corporate Payroll website for more information. Note that the iForm requires the preparer to confirm that the department has obtained a written letter of resignation.
  • Follow all applicable steps outlined in the Terminations Checklist.
  • When completing the termination iForm, consider the following:
    • Since most exempt employees have a base salary that is set to pay automatically unless a change is made, it is critical that termination iForms are submitted based upon the monthly payroll schedule to avoid an overpayment.
    • If the department cannot meet the schedule, submit the termination iForm as soon as possible and contact Corporate Payroll Services immediately in order to calculate the overpayment amount for collection.Upon calculation of the overpayment amount, Corporate Payroll Services will follow the guidelines of the Salary Overpayment Collection Policy.

C. CALCULATION AND DISTRIBUTION OF THE FINAL PAYCHECK FOR EXEMPT STAFF AND FACULTY:

  • All accrued vacation/unused discretionary holidays/PTO due the employee will be paid once the termination iForm has interfaced with the payroll system. Please use the monthly payroll schedule for the pay period in which time will pay.
  • Faculty will not receive accrued vacation upon termination.
  • Monthly paid (exempt) employees will receive the final payroll check/voucher for remaining days worked and/or vacation/PTO accrual, and any discretionary holidays through the U.S. mail. The check/voucher will be sent to the home address in the payroll system as of the termination date.
  • If the employee is currently set up for direct deposit, his/her final pay will be deposited into the corresponding bank account.
  • As of 12:00 am on the day after an employee’s termination date, the employee will be considered a former employee and will no longer have access to Duke@Work.
  • Departments are encouraged to remind employees the importance of maintaining a accurate home address in the payroll system to ensure W-2s are mailed to the appropriate home address. Employees can update home addresses after termination by notifying their department payroll representatives or by completing the Terminated Employee/Student Address Change Form.