How do I offboard an employee?

When an employee leaves your company, you need to end their contract, settle their last month and remaining leave, and remove them from your active employee list. Follow the steps below in this order.

Step 1: End the contract

Release the contract from the employee's "Contract" tab, set the exit date and the reason for termination, then generate the exit declaration. If SECUline is active, the exit declaration is sent to the CCSS automatically the following day.

See: How do I terminate an employee contract?

Step 2: Generate the final payslip

Generate the payslip for the month of the exit date and check the leave balance on it. You need this balance for the next step.

Step 3: Settle the remaining leave balance

If the employee has unused leave, they can either take it before the exit date, or you pay it out by adding a leave record of the type "Unused paid leave" and regenerating the final payslip.

See: How do I pay out unused leave to my employee?

If the employee took more leave than allowed, you cannot deduct the extra leave from the final salary. Ask the employee in writing to reimburse the amount instead.

See: What if my employee took more leave than allowed?

Step 4: Create a final settlement document (optional)

A final settlement document is not mandatory in Luxembourg. If you want to give one to the employee, create the "Calculation of statutory vacations" document and add your company stamp and signature.

See: How do I create a final settlement on Salary.lu?

Step 5: Disable the employee

Once the final payslip is complete, disable the employee from their profile. They move to the inactive list, their records stay in the system, and you can reactivate them at any time.

See: How do I disable employees on Salary.lu?

Updated on: 29/10/2026