P Ramachandran
Hr & Administrative Manager
Legal Counsel
Manager Hr & Admin
Gayathri VS
As Mentioned Above.
Private Services
Self Employed
Asst. Manager - Hrd
+7 Others

Thread Started by #HRgayathri

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.
15th October 2008 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.

15th October 2008 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.
Suresh M
16th October 2008 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.
16th October 2008 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)
16th October 2008 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.

16th October 2008 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
16th October 2008 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,
16th October 2008 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!!!
16th October 2008 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.
16th October 2008 From India, Bangalore
Dear HR Gurus, Above discussion regarding clearance formalities, i fully agreed with Mr. GVS and Mr. Suresh. This is practices are going on in so many companies, Thanks Maharana
16th October 2008 From India, Mumbai
Dear All,
In addition to the Policy on exit, you can have a detailed procedure for such activity in Standing Orders duly certified by competent authority, so that you will have a hold on legal issues.
16th October 2008 From India, Madras
Dear Gayatri,
There are two ways to come out of this situation:
a) Your option was whether you can give the releiving letter after 7 days of the notice period:
1. See it all depends on your company policy (so you have to add in your policy or appointment letter stating that releiving letter wil be given after 7 days of the notice period). Co's policy/appointment letter is something which we discuss during the time of joining or during induction. So if any employee is terminating he/she has a clear picture in the mind and will speak accordingly to the HR of the new company.This is nothing new what u will be intiating since every company follow its own policy according to their environment.
b)This option is accepted by every company (Exit Interviews Form)
And the same has been discussed with you by many of our friends
Madhura (HR)
16th October 2008 From India, Mumbai
If any employee leave the organisation, you must check whether any dues from them, any damage or loss to the machinery etc. It is better to give relieving order and experience certificate after they should clear from all the sections. It is not good to hold their certificates after 7 days from the date of their resignation. They may assured some other company to join the specified date or new employer may ask relieving order while joining on duty. Please follow the NO DUES procedure.
16th October 2008 From India, Coimbatore
Hi Gayatri, From my point of view it is unethical to increase the notice period of an employee. because you cannot ignore rules & regulations of the company thanks SACHIN DHAMIJA
16th October 2008 From Singapore, Singapore
Dear Gayatri,
if you have any doubt that particular employee those are doid a damage in the machine than theae all this will be clera during the NO DUES . So you just go thrugh with No Dues slip youfind ou solution of this problem.
16th October 2008 From India, Gurgaon
The departing employee has to submit the 'No due' certificate on the relieving day with clearance confirmations from all departments concerned.
You can give him the relieving letter on the same day as they have to submit it to the new employer. You may take a week time for the full & final settlement and then you can give the experience letter.
16th October 2008 From India, Bangalore
These are some of the things where you can resolve such issues;
Just Prepare a Form like "No-Dues"
You can have of lots things in your "No Due Form";
Right from ID Cards, Library books, Tansportation, Any Health Cards, Mobile Bill, Travel and Visa, Hotel Dues (If provided), Desk Keys, Clearance from System Admin Team, Team Lead/Supervisor, Cafeteria, and lastly from the Security.
Send it to the Payroll Dept/Respective HR Head. On the final settelement you can deal in a better way if any of these thing are pending or any damage occurs.
16th October 2008 From India, Srikakulam
Dear Harish,

Thanks much for your motivational comments and thanks to my previous company from where i have learnt this clear cut process.

I would certainly feel happy to share knowledge to our members.


17th October 2008 From India, Madras
Dear All,
GVS has given very good feedback on the said topic. I wud like inform you that we are also applying the same procedure as of GVS mentioned here i.e As soon as any resignation letter comes to HR Dept. we checks for acceptance of it from the concerned HOD & then issues Acceptance of Res. Letter. Once it is done & at the last wrkng day sends NOC(No Objection Certificate) or Clearance Sheet to the concerned Dept & Accounts Dept as well to have clear idea about the person's liability if any to proceed further. On the basis of which we issues the exp. certificate to him/her. For example PFA is sample of Clearance Sheet we currently using for this purpose.
17th October 2008 From India, Mumbai

Attached Files
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File Type: doc Clearance Sheet for Full & Final Settlement.doc (99.5 KB, 1631 views)

Dear Gayathri,

Just few suggestions regarding the No Dues Clearance:

* Once you frame your No Dues Clearance before finalising it, please have it checked with our members in Cite HR or with your friends working for other companies; they might be in the position to suggest you more. Fix up a deadline and try to pick the suggestions that you get within a specified date.

* Initially you can have it as a hard copy later on you can convert as a soft copy. Getting authorisations in the hard copy requires lot of time from an employee as he has to meet all the teams and get it done in person. If it is in the soft form, you can design it in such a way that teams authorise it online and reminders are sent to those who havent done it. You got to ensure that you have an effective tool for the same.

Answers for your queries are given below:

* Laws / rules for exit or releiving process,(got this info from couple of people who are in our profession), there is no such clause/ section in the laws. Also please note that you cannot deduct his PF, Gratuity, ESI etc as those benefits are completely for employees and if at all you want to deduct it from any of those mentioned, there are lot of processes involved in that like issuing the charge sheet , enquiry etc. You got to have all this documented and you should have a proof that you have approached him for the amount, but he is not ready to pay you that. There are lot of legal complications involved in that, so it is better to take an advise from your legal team / legal advior to get into such things.

* Competeny Mapping Model:

I hope you are intending to mean Competeny Mapping; and Competeny Model - well known as Competency Framework (Identification of Competencies required for different levels and different postions in an organisation) and Competency Mapping ( Finding out the areas of improvement in an individual against the competency frame work)are two different areas of Competency Assessment. Am not sure about your Knowledge in this area; so giving you the basic idea on this topic.

Competency Framework : Is a process of identifying the competencies that are required to perform jobs at different levels and different positions in an organisation. It is either done by Top Management or it is also outsourced to Consultants in few companies - KESDEE, Clarity Consultants, Candid Consultants etc.

Competency Mapping: Measurement of an individual's competencies against the competencies that are derived for his poition, Level, Function etc.. This is normally done during interviews and appraisal reviews also additionally in assessment centres.

Both Put together is called as Competency Assessment.

To name a few Competencies, say for HR Executive it could be Clarity of Purpose, Customer Service, People Management, Uses HR Tools and Resources and in the same Company for a Senior HR Manager it could be Understands Team and Orgnisation behaviour, Creates trust, Resolves Confict, Strategic Planner etc..

Competency Deleopment : You develop the compentencies of an individual once the areas of improvement are identified and this is done through Training, Assigning an internal project, Assigning a particular task that would help him to develop that particular competency.

* Performance Review Model:

Again i hope you are intending to mean Performance Review. This involves two phases - Planning and Reviewing.

Planning : This involves setting up the Key Result Areas for a particular position in an Organisation. And also the performance standards for each of the KRAs mentioned.
Eg. My KRA is to Recruit 100 people in a month.
If i recruit 100 people in a month my Rating would be 5 ( 5 being highest and 1 being lowest, differs from company to company),

If i recruit 85 people/ lesser in a month my Rating would be 4

If i recruit 75 people/ lesser in a month my Rating would be 3

f i recruit 65 people/ lesser in a month my Rating would be 2

If it is just below 50, my rating would be 1.

Reviewing: Validating the acheivement of an individual against the KRAs that are set during the year beginning, or during role change and very importantly when he joins.

360 Degree Appraisal: Appraisal done in all the four directions like Supervisor, Peers, Subordinate and Customer where in an individual is appraised by all the partners involved in his job.
Advantage: An individual being assessed by all the areas and the feedback could be validated well since they are from different sources.
Disadvantages: Comlicated process
Lot of Analysis to be done
In many cases, it is impractical.
Particularly in India it is difficult, as HR has to do lot of follow ups (even) for Traditional appraisal ( appraisal by Only Manager).

Gayathri, would appreciate if you could share your experience on MBO.

Dear Seniors,
I have handled only exit among the areas mentioned by me. So please correct me if i am wrong somewhere in the above mentioned points.


17th October 2008 From India, Madras
There is no rule that you should issue relieving letter on the last day ,it is just a process and you can issue it after you make all the checks and ask him to comeback to collect it unless he leaves the Station. Merely because he has gone it does not mean you cannot claim it if you .In case you can fix the responsibility with evidence you can seek for recovering the loss.
With Regards
V.Sounder Rajan

E-mail : ,

17th October 2008 From India, Bangalore
Hi, I suppose this finds you useful. Modify according to your requirement. Regards, Yatin. :idea:
18th October 2008

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File Type: doc Company Separation and Clearance Form.doc (45.0 KB, 1505 views)

Hi, Gayatri
You can ragister the case with local police
Consult them, the employee can be braught to book officially
It is not much difficult
If you have Security Mgr or Admin Mgr, ask them to ragister the case
Bharat Ketkar
18th October 2008 From Switzerland, Langenthal
Dear GVS,
Performance Review in many of the companies is based on MBO method(Management by Objective). Management will follow an objective to do the review which should be accepted by the employees as well. It is a two way communication. Getting the self assessment score from the employees for a particular organization goal/objective and scoring received from the management(Supervisors) about that employee and map both scores. Discuss about the results with the employees and Supervisors as employee should not feel that the results are in bias. So even the employee know where they stand and based on the results, review for him is done.
Please check on this. Correct me if I am wrong.
Please share some informations which you know so that we both will be mutually benefited with knowledge on HR processes. I am interested to learn HR process, as I am new to the HR field
20th October 2008 From India, Bangalore
I would like to share what we do to avoid such situation.
We have formality called Full & Final Settlement, the employee on his last working day has to collect the form and needs to gets all relevant dept/people signature which include the project head and group head signature column, which ensure the work/related material handover.
After getting signature from others, employee has to go to Finance dept for finance related settlement and finance person will let him know the amount he is going to get end of the month. But that amount will only be given to him after 5 working days, if month end but if employee is leaving in middle of the month, the payment will be made to him end of the month only.
That form will then come to HRD, after ensuring all have signed the relieving and experience letter can be given.
20th October 2008 From India, Bangalore
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