Understanding Employee Status: Inactive vs. Terminated

This article explains the distinction between "Inactive" and "Terminated" employee statuses within the 7shifts platform. These concepts are especially important to understand for accounts using 7shifts Payroll.

Key Concepts:

Inactive Status: 

• Employee access to the 7shifts platform for your company is revoked.
• Payroll inclusion is unaffected. Inactive employees remain eligible for payroll.
• Use 'Inactive' to control access to 7shifts.

Terminated Status: 

• Indicates the employee's departure from the company.
• Setting the 'Termination Date' is vital; it determines the employee's last day of pay. and payroll inclusion.
• After the 'Termination Date,' the employee will no longer be included in payroll runs.
• Use 'Terminated' and set the 'Termination Date' to control payroll inclusion. 

Detailed Explanation:

In 7shifts, 'Inactive' and 'Terminated' statuses serve different purposes.

• Inactive: This status is primarily for managing user access to the 7shifts platform. If an employee temporarily needs to be restricted from logging into 7shifts (e.g., a leave of absence), setting them to 'Inactive' will achieve this. However, their payroll remains unaffected and the employee will continue to appear in payroll runs. 
• Terminated: This status signifies the employee's official departure from the company. The 'Termination Date' is the critical factor. 7shifts Payroll uses this date to determine the employee's final pay period.