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Dear All, I read various articles /posts/ flowcharts related to the clearance process but could not get the exact idea about it. From the day the employee resigns, what should be the exit process for him? I am more particular to know about dates... for example... I consider the date of resignation as the 0th Date .........then on what date should discussion with the management by his reporting authority, resignation approval/ disapproval, no dues/clearance form, experience certificate issue to the employee and full and final settlement takes place considering notice period as 1 month.
Please suggest.

From India, Hyderabad
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Please consider the following:
  • If you resign at 17-5-2011.
  • Your Reporting manager should revert within a day. Though there are cases which may take upto 3 days, due to the retention program. However, it’s an extreme case. The reason being, right when an employee resigns, a stop payment request is initiated on the employee's salary. This needs to happen within the 24 hrs. Hence the time to revert on a resignation is less than that. The salary which is stopped from disbursing, is released after the dues calculation and deductions, through the Full and Final settlement.
  • Your company requires you to serve a notice period of 1 month. Hence you date of release would be 18th June 2011.
  • The clearance form is required to be filled and signed on the last working date.
  • Your relieving documents would be issued on 17th June 2011. It will share your, name , designation, vertical, date of joining, reporting to, date of resigning and last date of working.
  • It would further mention that the release would be subjected towards the clearances from the Finance department.
  • Finance team would require 45 days to process your Full and Final settlement. This would include your leave encashment, last month's salary, if it was freezed and any other payout including the incentives or any variable.
  • The cheque including the F&F amount is issued along with a letter stating the release and financial clearance.
  • This cheque is either couriered or collected as per the company rules.
Hope this clarifies your query.

(Cite Contribution)

From India, Mumbai

Thank you very much Ms. (Cite Contribution) for your response. I am very much clear with the process now.This will definately help me out to follow a systematic process . What would be the change in the exit process if the employee is terminated ?Whether we need to follow more quicker process.

From India, Hyderabad
Cite Contribution


Please consider the following clearance process for the employees who gets terminated.

Termination due to a sudden incidence:
  1. The discussion between the employee and the reporting manager or HR, would inform the employee about the termination of the services.
  2. The duration to be served under the notice period by the employer is generally mentioned in the appointment letter. However, that is an employer's prerogative. Though, in this case, the amount for the rest of the period requires to be paid to the employee.
  3. The last date of working is either on the day , the employee is informed or on a later date as per the appointment letter. A permanent employee may have to work for 1-3 months notice period. Employees who are in probation can be released within 7 working days.
  4. Issue the clearance form, and a release letter right then.
  5. The Full and Final settlement depends on the case. When the company is trying to snap all the ties with the employee, it is processed as early as possible.
  6. I know firms who issue the clearance cheque and the document before the end of the day and release the employee. This is done to avoid any unstable situation resulting out of the sudden action.

Termination due to performance failure
  1. This works through PIP or Performance Improvement Program. This is ideally for 21-45 working days. Here the employee is given a clear track to improve. training programs are arranges and the employee is assessed on it. As this progress, it builds on the score which decides the service continuation or termination.
  2. Generally, the employee realises the upending termination from a plummeting score.
  3. At the end of the PIP , the concerns are discussed with the employee and they are relieved of the services.
  4. The employee completes all the clearance processes on last date of working.
  5. Full and final settlement is released within the next 45 days. A clearance process for a normal resignation process and termination on performance are similar, because, here the employee was given a notice well in advance. Furthermore the employer provided support to improve. Make sure the PIP is well documented , so as to avoid every dispute later. The employee needs to sign on the incident reporting form for every meeting. Both the parties needs to have a document supporting that they had agreed with the advances made so far.
Incase you have any other issues , please share. Looking forward to hear from you.

(Cite Contribution)

From India, Mumbai
Dear Madam, I am clear with the complete process now. Will try to implement it . Thank you once again . Will take futher your valuable advise on other issue if arised. Thanks,
From India, Hyderabad
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