Run a final settlement

What this achieves

A final settlement run calculates everything owed to an employee who is leaving, across the partial period up to their last working day. It replaces the regular run for that person, because a leaver rarely departs on a period boundary.

Required role: Administrator.

Before you start

Confirm the employee’s last working day and have any accountant-calculated figures ready. Gratuity and leave encashment are entered by you rather than derived, so the settlement waits on those numbers.

Steps

Go to Payroll → Payroll Runs.
Select Final settlement.
Choose the Employee.
Choose the Pay group.
Set the Period start, the Last working day, and the Pay date.
Enter the EOS gratuity, if one is owed.
Enter the Leave encashment, if any.
Select Create settlement run.

Options on this screen

Option	Description
Employee	The leaver this settlement is for. A settlement run covers one person.
Pay group	The group they belong to, which sets the entity, currency, and statutory rules.
Period start	The start of the partial final period.
Last working day	The employee’s final day, which ends the period.
Pay date	When the settlement is paid.
EOS gratuity	End-of-service gratuity owed, entered manually.
Leave encashment	Unused leave being paid out, entered manually.

Gratuity and encashment are entered, not calculated

Both figures are entered manually as accountant figures. They are recorded on the settlement rather than derived by Humavera, and they are not automatically taxed.

That is a deliberate boundary. What is owed on termination depends on local employment law, the contract, and often a negotiated position — Humavera records the number you supply rather than guessing at one.

Example: if HC Corp UK Ltd’s finance team calculates a leave encashment figure for a departing employee, Priya Raman enters that figure. Humavera does not derive it from the leave balance on its own.

Confirm the tax treatment of both amounts with whoever advises you, because the settlement does not apply one for you.

The partial period is calculated normally

Everything else in the settlement — base pay across the partial period, allowances the employee is still eligible for, statutory deductions — is calculated as a run normally would, prorated to the last working day.

It is still a run

A final settlement follows the same lifecycle as any other run and needs a second administrator’s approval before it can be finalised. Settlement runs carry their own badge and can be filtered for in the runs list.

Example: Priya Raman creates the settlement for a departing HC Corp UK Ltd employee; Daniel Okonkwo approves it. Finalising locks it like any other run.

What happens next

The finalised settlement produces a payslip for the leaver, available to them alongside their earlier ones, and appears in the period’s reporting. Any outstanding loan balance needs settling as part of the departure — check it before finalising, because a finalised run cannot be edited afterwards.