Understanding Termination and Resignation: How Should Managers and HR Handle the Exit Process?

Dear Seniors,

Greetings!

Please find attached the Exit process flowchart with this post. I downloaded this from Citehr a few weeks back and I find it exactly matches our company process. Please check and let me know how good it is. Also, I would like to know about the interview with HR and functional head (for retaining) and the exit interview. Are these both done separately? An exit interview is basically to retain employees, and for me, both are the same. Why is this process shown separately in this chart?

I would like to know the exit process for a terminated employee. The manager who terminates the employee, what procedures should he follow when terminating? Who all should be kept informed about the termination and the reasons for it? How should the HR department and personnel department proceed with it?

To be precise, I require an Exit process flowchart for a termination (starting from the manager's termination decision to settlement).

There are also cases where some employees are asked to resign rather than being terminated. How should this process be taken forward? Who should be informed of the reasons for asking an employee to resign?

Please guide me in this regard.

Sharmila

In response to your query, the exit process for a terminated employee should adhere to legal requirements and internal policies. Here is a practical guide to managing the termination process effectively:

1. Managerial Procedures for Termination:
- The manager should follow a structured process when terminating an employee. This includes documenting performance or behavioral issues leading to termination, conducting a termination meeting in a private setting, and providing a termination letter outlining the reasons for termination.

2. Communication and Notification:
- The HR department should be informed immediately after the termination decision is made. They will handle the administrative aspects such as final pay, benefits, and exit procedures. Additionally, key stakeholders like the legal department should be informed to ensure compliance with labor laws.

3. Exit Process Flowchart:
- Develop a detailed flowchart outlining the steps from the manager's decision to the final settlement. This document should include all necessary actions and responsibilities at each stage of the termination process.

4. Forced Resignation Process:
- When an employee is asked to resign, the reasons for this decision should be communicated clearly. HR should handle this process delicately to avoid potential legal implications. It's crucial to document the reasons for requesting resignation and ensure fairness in the treatment of the employee.

By following these steps and maintaining transparency throughout the termination or forced resignation process, organizations can mitigate risks and uphold ethical standards in their HR practices.