P Ramachandran
Hr & Administrative Manager
Rajanassociates
Legal Counsel
MANOKAVIN
Manager Hr & Admin
Yatin_9
Professional
Gojiri
Service
Gayathri VS
As Mentioned Above.
Manasvi
Private Services
+4 Others

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Hi,
There is a situation in my office, that one of the employee who was in the notice period did some damages to the machines and got relieved on the 30th day of his notice with the relieving papers. We came to know on the damage only after he left the company. It was a loss to us.
I just want to know, is it possible to give the relieving papers after 7 days from the last notice date( say after 7 days from 30 days notice) ie 37th day. can we do like this way? Is any law stops this action. Please help out seniors what to do for this type of situations.
I mean to say the employee can relieve on 30th day of his notice. But can we give the relieving papers by 37th day by checking on everything? Also we thought it would make the employee not to do any misbehavioural activities as we hold their relieving papers.
Please help me.
Regards,
Gayathri

From India, Bangalore
Dear Gayathri,

To avoid these kind of damages and situations we need to have a Process of "No-Dues Clearance" which requires an authorisation from all the functional teams / all the teams that handles the assets of the company. If there is anything to be recovered from Employee it can be notified to HR so that it could be deducted from his full and final settlement.

As far as my understanding is concerned few companies release the experience letters after the payment of full and final settlement, in that case they have to give the releiving letter on the releiving date. While we expect that an employee should join our company with all the required documents, as an employer we will also have to ensure that we do the needful from our end.

In the given situation, process could have been as follows:

* A supervisor / Manager should have been there who takes care of all the machineries.

* When an employee had approached him for the no dues clearance Manager shoud have checked the functionality of machines and signed accordingly - if the machine was fine, he could have cleared it, if the machine was not in the condition he should have put is as a remarks in it.

*Based on the extent of damage, HR should have deducted the amount from his full and final settlement.

Hope this clarifies your query and pl let me know if you have any questions on this.

Regards,
GVS

From India, Madras
Dear GVS,
Good points stressed by you.
In order to get rid of these critical issues,a process call "Handover & Take over" is to be carried out during the Joining and exit of an employee.
The Supervisor or the next level manager would see to that everything is in place as per the system, which includes, Files, Documents, Machineries, etc..
The process could be documented and would be of a greater use.
Regards,
Suresh M

From India, Madras
Dear GVS,
Thanks for clarifying. It would be of great help if you can send the process of Exit Clearances or relieving formalities which you follow and if you have any specific formats of No dues clearances checklists, please send me to follow it.
The process which I follow as the relieving formalities is,
1) Exit interview
2) Exit clearances only from their Network administrators.
3) Payment settlements
4) Checking on the knowledge sharings of that employee in the notice period.
5) PF registers and leave registers.
6) Hand over of the relieving papers.
Kindly check out and guide me to stop this type of activities in future by following the clearances as you said.
Also, please let me know if any labour law or rule stating about the relieving of a employee in regards to my situation.
Regards,
Gayathri.

From India, Bangalore
dear friend,
if your organisation is small enough, you can just have a simple No Due Certificate containing NAME,DEPARTMENT,DESIGNATION,DATE OF RESIGNATION,COMMENTS,SIGNATURE OF THE DEPARTMENT HEAD. This format shall be forwarded to all the departments(in seperate sheets) connected to the resigned person either through the resigned person or seperately and on getting clearance only we can issue releiving order. You can refer Industrisl Establishments(standing Orders)Act,Shops and commercial establishments Act(if it is outside Tamilnadu)

From India, Madras
Dear Gayathri,

Please find below the basic contents of a " No Dues Certificate":

Employee Code / Number:
Employee Name:
DOJ: ( This will indicate whether employee is a probationer / confirmed employee ).
Date of Resignation: ( This will indicate whether employee has served his notice period / not ).
Releiving date:

Authorisation / Signatures to be done by the following teams. You have have three columns for Teams, Signatures and Comments and add more based on your requirements.

Reporting Manager / Supervisor: To ensure that proper knowledge transfer is done and all machineries / equipments are in proper condition.

Admin Team: ID card and other assets owned by Admin team.

Network Team: Network ID, Laptop etc

Travel and Visa : Is mandatory in IT companies where lot of travel happens

Finance Team: Advances, Loans etc..

HR Team: Leave calculations and Verifications, PF, ESI, Gratutity etc, Full and Final Settlement.

Suggested flow of work is:

Finance could sign only after signatures from all teams
Only after signature from Finance, HR could work on F & F settlement and issue the letters.

It is better to have a double check on all this, before you release the letters.
Based on your organisational requirements, add more teams to ehat i have mentioned.You can frame this either in word / excel.

For your queries on Laws, I need to get clarified few things before i confirm you; but for process part am sure you can a frame an effective policy and let me know for further support.

Regards,
GVS

From India, Madras
check whether his pf has been settled or not inorder to claim his pf he has to contact the personnel department there he will be caught and you can recover the damages
From India, Bangalore
Very useful things shared by Gayathry VS. Thanks for sharing i think it will be useful to many HR professionals who have recently started their career in the same stream. regards,
From India, Ahmadabad
Dear GVS,
good show! your reply is very clear and comprehensive. The format looks really good. Though most of us know all these processes, we do tend to miss out while carrying out.
look forward for more stuffs!!!
Harish

From India, Madras
Dear GVS,
Thanks. I will implement the format which you gave for all future uses and try to stop such type of loss hereafter.
Also, I would like know more on competency mapping models and Performance review models which commonly used in all IT companies.
In our company, we follow MBO method. But I wish to know about 360 degree method too.
Hoping to get lots of support from you seniors.
Regards,
Gayathri

From India, Bangalore

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™