Labor Contract Termination Reasons
Labor Contract Termination Reasons is the catalog of motives your company uses to end the employment relationship with an employee (for example, resignation, justified dismissal, end of a temporary contract, or mutual agreement). When you close a Labor Contract by entering its termination date, AdmCloud asks you to pick one of these reasons, so it stays documented and available in your HR reports.
What is it and what is it for?
This catalog stores, with a short name and an optional note, every reason a Labor Contract can end with in your company. Instead of typing the reason as free text every time a contract ends, you pick it from this list, which keeps the information consistent and makes it easier to later analyze, for example, how many exits were resignations versus how many were dismissals.
You define the reasons you need: AdmCloud does not ship a fixed catalog, so you can create as many as your HR policy requires (Voluntary Resignation, Dismissal With Cause, Dismissal Without Cause, End of Temporary Contract, Mutual Agreement, Death, etc.) and edit or delete them as long as they aren't in use.
Where it's used
The Termination Reason field appears on the employee's Labor Contract, next to the Termination Date field. Both fields go together: as soon as you set a termination date on a contract, AdmCloud requires you to also pick the reason, and vice versa.
How to use it
- Browse the catalog. Open Labor Contract Termination Reasons from Payroll. You'll see the name of every reason already created, sorted alphabetically.
- Create a new reason. Click Create, type the Name (up to 50 characters) and, if you want, a Note explaining when it should be used. Save it to add it to the catalog.
- Edit it whenever you need to. From the reason's detail screen, use Edit to fix its Name or its Note.
- Select it when ending a contract. On the employee's Labor Contract, enter the Termination Date and pick the matching reason in the Termination Reason field, then save the contract.
- Delete the ones you no longer use. From the reason's detail screen, use Delete. It can only be removed if no Labor Contract has it assigned.
Key fields
| Field | What it's for |
|---|---|
| Name | Short, unique description of the reason (for example "Voluntary Resignation"). Up to 50 characters. This is the text you'll see when picking it on a Labor Contract. |
| Notes | Free, optional text to document internally when or how this reason should be used (for example, what supporting documentation to request). |
Validations when saving
- The Name is required; the reason cannot be saved blank.
- Two reasons cannot share the same Name; if a matching one already exists, AdmCloud rejects the save.
- A reason cannot be deleted while at least one Labor Contract has it assigned as its termination reason; AdmCloud lists those contracts so you can first assign them another reason or reopen them.
Availability
- Access to this catalog is controlled by the "Configuration" permission of System Administration, with its View, Add, Edit and Delete levels.
- The catalog itself does not depend on a specific plan, but it's only useful if your company has Labor Contracts available, which requires the Premium Plus Payroll plan or higher, or the Enterprise plan with the Payroll module active.
Tips and common mistakes
Set up your reasons from the start with clear, consistent names (for example, separate "Dismissal With Cause" from "Dismissal Without Cause") so your turnover reports stay useful and comparable over time.
Can't delete a reason? It means there's still at least one terminated Labor Contract with that reason assigned. AdmCloud shows you how many contracts those are; review them and, if you truly no longer need that reason, change their termination reason before deleting it.
When ending a contract, the Termination Date and the Termination Reason are inseparable: filling in one will make AdmCloud ask for the other before letting you save.