When an employee leaves your company, you may no longer want to see them in your list of employees.
The best approach for dealing with this is to simply delete their record from the system. When you delete employees, their records are never removed from the database, but instead they are flagged as deleted so that they do not show anymore.
Any time / expenses recorded by the deleted employee do not get removed either, and will still be seen when you produce timesheet / expense reports. They will no longer show in leave management reports though.
You can undelete the employee at a later stage if you wish, please see the section on Deleting / Undeleting Employees for more information.