Layoff Process
If any company wants to Terminate bulk number of employees, because of Project Closure, Business losses etc. We will ask the employee to submit the Resignation, after that we will prepare their Full & Final settlement as per the company policy.
Laid off employees are not required to serve notice period and they will be getting all the benefits and service letters as per the company.
Absconding Process
Once the employee absconds, we will be informed by Department Reporting Manager after that we will prepare the WARNING LETTER/ ABSCONDING LETTER. We will send the same through email and will ask the employee to complete the Exit formalities as soon as possible.
After that we will prepare their Termination Letter as well as Full & Final Settlement. We will share the same with Employee. If the Full & Final Settlement amount has to be paid by the employee. We will then handover the documents to Legal Department to recover the same. If the employee comes back and completes the Exit Formalities then employee is eligible to get Full & Final Settlement amount due to them as well as the service certificate.
Retirement Process
When an employee attaining the age of 60 in a company is called as Retired Employee. We will prepare the full & final settlement, Superannuation, Gratuity and if any other benefit during the Retirement period of the employee and the management will handover the same on his last working day.
The retired employee can work as professional consultant or retainer if they want to continue their service with current company. During this period employees are not eligible for social security benefits as per the company policy.
Termination Process
During the Probation Period of any Employee a company can terminate them without any reason for termination.
Company cannot terminate an employee without any reason once they are confirmed in the job. Company must go through the termination process as per the company policy, if there are any valid reasons.
Reason for Termination
- Poor Performance
- Absenteeism
- Late Coming
- Harassment (Sex, Age, Religion, Race)
- Violation of Company Policies
In case of any of the above reasons, will call the Employee And give verbal warning and if the employee continue the same mistake we will issue show cause notice to the employee and we will ask them to reply for the letter within seven days.and give verbal warning and if the employee continue the same mistake we will issue show cause notice to the employee and we will ask them to reply for the letter within seven days.
If the employee doesn’t reply to this letter or repeat the same reason, we will prepare the termination letter and initiate a full and final settlement immediately and will ask the employee to complete exit formalities. After that we will collect full and final payment from finance department and handover the same to employee on Last working day as per the company policy.last working day as per the company policy.
Resignation Process
Once Employee submits the resignation, we will get information from client and after that we will prepare resignation acceptance letter. Will send the same to employee by email.
During the notice period employee will complete the Knowledge Transfer process (KT) (handing over and taking over formalities) as per the company policy or acceptance letter of company policy.
We’ll update the resigned employee details on HR Software, employee Master database as well as in MIS Reports such as resigned employee report, Stop Payments Report, Hold Salary Report, Mediclaim Deduction Report.
We Will follow up with employee and will asked the employee to submit clearance forms from each department related to them and their knowledge transfer forms along with checklist and documents on their last working day.
Employees last working day we will go to client place, will collect the clearance forms signed by all departments, knowledge transfer forms signed by reporting manager along with the supporting documents and we will verify the same and file the same on the employee file.
We will handover exit interview form to employee as a part of exit interview and will co-ordinate with employees department for send off.
We will update the last working day details in HR software, employee Master and MIS reports such as left employee report, exit interview feedback report etc.
We will prepare the experience certificate and relieving letter on the last working day of employee and we will handover the same to employee as per company policy.
Full & Final Settlement Process (FFS)
Once the employee has left the company, we will take the employee personal file and we will prepare the full and final settlement in excel sheet as well as in software. Will take printout and I will take approval from our manager and submit the same to finance department.
We will ensure that the payment will be released to Employee by Finance department within 30 days of date of leaving.
- Hold Salary of Employee > Net Salary from Payroll
- Payments
- Gratuity (5 or more years of Service)
- Leave Encashment
- Incentives / Bonus if any pending
- Statutory Bonus as per bonus act
- Any other allowances to be paid
- Claims and Allowances
- Deductions
- Notice Break Payment
- Loans & Advances as per clearance forms
- Assets Damages & Penalty
- Any other deductions to be recovered from employee
- Any extra Professional Tax deduction
Gratuity = Last Drawn Full Basic / 26 * 15 * No. of years completed in an organisation.
Leave Encashment = Basic + DA / 26 * No. of EL Balance
Statutory Bonus : If salary less than ?21,000 then ?7000 has to be paid as yearly bonus for 12 months and if served less, will be calculated accordingly
Notice Break Payment = Gross Salary / 30 * No. of Break Days
Break Days = Notice Period – Days of notice served
Example of FFS
