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  1. From Central Admin > user profile search > Employee not listed (meaning nightly sync took him out)
  2. However, went to a site permission and type the terminated employee's user id "tpatel" and SP resolved it.

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so what should I do to fix this issue?

is there a good powershell that can list orphan users?

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Found a script on codeplex sharepointpsscripts.codeplex.com/releases/view/21699 and ran it. However, Tulsi Patel is not in the orphan user's list. Could it be terminated employees in Active Directory are moved to Terminated OU. There is a line in the powershell script where you will have to supply the web-app and the LDAP path. ListOrphanedUsersForAllColl "portal.nile.com"; "LDAP://DC=bile,DC=net" –  Bill Baer Jun 8 '12 at 18:01

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Just because the user has been excluded from the people crawl (and therefore will have his user profile eventually removed) does not necessarily exclude them from the people picker. Are terminated user accounts only moved to a different OU or are the accounts disabled as well? By default, just moving the OU will have no effect since all of AD is searched for users matching the query.

Here is some reading for you that should help: http://technet.microsoft.com/en-us/library/gg602068.aspx

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