Understanding the Employee Exit Process: What Happens After Resignation Day?

Understanding the Employee Exit Process Timeline

I have read various articles, posts, and flowcharts related to the clearance process but could not grasp the exact idea about it. Starting from the day the employee resigns, what should be the exit process for them? I am particularly interested in understanding the timeline of events. For example, I consider the date of resignation as the 0th Date. Then, on what date should the discussion with the management by the reporting authority, resignation approval/disapproval, no dues/clearance form submission, experience certificate issuance to the employee, and full and final settlement take place, considering the notice period as 1 month?

Please suggest.

Regards

Greetings, please consider the following:

- If you resign on 17th May 2011, your reporting manager should revert within a day. Though there are cases that may take up to 3 days due to the retention program, 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 24 hours. 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, your 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 subject to clearances from the Finance department.

- The 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 frozen, and any other payout, including 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.

Regards,
(Cite Contribution)

Thank you very much, Ms. (Cite Contribution), for your response. I am very clear with the process now. This will definitely help me to follow a systematic process.

Change in Exit Process for Terminated Employees

What would be the change in the exit process if the employee is terminated? Do we need to follow a quicker process?

Regards

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

Termination due to a sudden incidence:

1. The discussion between the employee and the reporting manager or HR will inform the employee about the termination of 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. In this case, the amount for the rest of the period needs to be paid to the employee.
3. The last working day is either the day the employee is informed or a later date as per the appointment letter. A permanent employee may have to work for a 1-3 month notice period. Employees who are on probation can be released within 7 working days.
4. Issue the clearance form and a release letter immediately.
5. The Full and Final settlement depends on the case. When the company is trying to sever all ties with the employee, it is processed as early as possible.
6. I know firms that issue the clearance check and the document before the end of the day and release the employee. This is done to avoid any unstable situation resulting from the sudden action.

Termination due to performance failure:

1. This works through a PIP or Performance Improvement Program, ideally for 21-45 working days. Here the employee is given a clear track to improve. Training programs are arranged, and the employee is assessed on them. As this progresses, it builds on the score which decides the service continuation or termination.
2. Generally, the employee realizes the impending 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 the last working day.
5. Full and final settlement is released within the next 45 days. A clearance process for a normal resignation and termination due to performance is similar because the employee was given notice well in advance. Furthermore, the employer provided support to improve. Make sure the PIP is well documented to avoid any disputes later. The employee needs to sign the incident reporting form for every meeting. Both parties need a document supporting that they agreed with the advances made so far.

In case you have any other issues, please share. Looking forward to hearing from you.

Regards, Cite Contribution

I am clear on the complete process now. I will try to implement it. Thank you once again. I will seek your valuable advice on other issues if they arise.

Thanks,