What happens to funds when an employee leaves the company?
Short answer
When an employee leaves, admins must decide whether to terminate those funds entirely or reassign them to another employee.
On Ramp, when you deactivate or remove a user from Company > People, you'll be prompted to choose what happens to their active funds: terminate them, reassign them to their manager, or reassign them to a specific user.
What happens to the employee's funds
When you terminate a user in Ramp:
- Cards are immediately disabled. Physical cards are always terminated with the cardholder. The user can no longer make new transactions.
- Authorized transactions still post. Transactions made by the terminated employee will still be applied to your next statement and remain visible on your dashboard.
- You must decide what to do with their funds. During termination, you'll choose to terminate, reassign to their manager, or reassign to a specific user
Options for handling funds
Before terminating a user, choose one of these options for their active funds:
- Terminate the funds. Permanently disables the funds and frees up budget.
- Reassign to their manager. Transfers ownership to the employee's manager.
- Reassign to a specific user. Transfers ownership to a specific team member.
Important: Reassigning funds (rather than terminating them) ensures that recurring payments and subscriptions continue without interruption. The new owner receives the remaining balance and all associated spending controls.
Best practices
- Remove users from approval policies before attempting to terminate them to avoid errors
- Review active funds before termination to determine which should be reassigned vs terminated
- Download transaction history for the terminated employee for your records
- Use your accounting software as the source of truth for accurate transaction records