Terminating a contract correctly is vital for legal compliance. Nawiri features an automated Offboarding Engine that handles the math, the paperwork, and the system access revocation in one smooth process.
How to End a Contract
Navigate to the Employee's Profile and click the red "End Contract" button. You will be presented with a final settlement form.
1. Notice Period Options
- Pay In Lieu of Notice: Terminates the employee today, but automatically adds 1 month of basic salary to their final dues.
- Provide 1 Month Notice: Sets their termination date 30 days in the future. They continue on normal payroll until then.
- Custom Date: Select an exact final working day.
2. Unused Leave Payout
If the box is checked, Nawiri calculates the employee's exact remaining leave balance as of their termination date. It then calculates the cash value using the standard formula: (Basic Salary ÷ 22 Working Days) × Remaining Leave Days.
3. Severance Pay
If the termination is due to redundancy, enter a multiplier (e.g., 1.5 for 1.5 months' pay). Nawiri will multiply this by their basic salary and add it to the final package.
What happens when you click Confirm?
- Security: The employee's login portal is immediately deactivated to protect company data.
- Paperwork: An official Termination Letter is generated (including the exact breakdown of their final dues) and emailed to the employee. A copy is saved in your Document E-Library.
- Payroll: The total calculated amount is injected into the payroll system as "Termination Final Dues". It will automatically appear on their payslip during your next monthly payroll run, fully subjected to standard KRA taxation.
Protect your company from costly labor disputes.
Calculating final dues manually almost always leads to mathematical errors and disgruntled ex-employees. Nawiri HRMS guarantees 100% accurate, legally compliant offboarding calculations in seconds.
Automate Your Offboarding for Free Start your 14-day free trial. Setup takes less than 2 minutes.