An employee exit policy sets out the step-by-step exit process once a separation is confirmed — knowledge handover, no-dues clearance from each department, return of assets, access revocation, exit interview, full and final settlement, PF and gratuity processing, and issue of relieving and experience letters.
This policy ensures that every employee leaving [Company Name] has a smooth, respectful exit, that work and company property are handed over, and that dues are settled correctly and on time.
2. Scope
It applies to all separations confirmed under the Separation Policy — resignation, termination, retirement and end of contract.
3. Definitions
Last Working Day (LWD): the final day of employment as per the acceptance letter.
No-dues clearance: sign-off from each department that nothing is pending.
Full and final settlement (F&F): the final calculation and payment of all dues and recoveries.
4. Policy
The exit process begins on acceptance of resignation or issue of separation letter.
The employee prepares a handover note and transfers files to the nominated successor before the LWD.
All company property — laptop, ID card, SIM, documents, tools — is returned by the LWD.
System and premises access is revoked at the end of the LWD.
An exit interview is offered to every leaving employee; responses are confidential and used to improve the workplace.
F&F is processed within [Number] working days of the LWD, within statutory timelines. Gratuity, where eligible, is paid as per law.
HR assists the employee with PF transfer or withdrawal through the UAN portal.
Relieving and experience letters are issued on completion of the exit process.
5. Procedure – Clearance Checklist
Reporting Manager: handover note and file transfer completed
IT: laptop, accessories and data returned; email and system access disabled
Admin: ID card, access card, keys, SIM and other assets returned
Finance: advances, loans and expense claims settled
Library / Stores: books, tools and PPE returned
HR: exit interview done; leave balance and notice status verified
Payroll: F&F computed and approved
HR: relieving letter, experience letter and Form 16 issued
6. Responsibilities
Employee: complete handover, return property, give exit feedback.
Manager: plan handover, sign off and nominate successor.
Department heads: timely clearance sign-off.
HR and Payroll: coordinate, compute F&F, issue letters.
7. Non-compliance
Unreturned property may be recovered at depreciated value from F&F as permitted by law and with notice to the employee. Departments delaying clearance will be escalated to the HR Head.
8. Review & Approval
HR will review this policy and exit interview trends every [Number] months.
Prepared by [HR Name] Human Resources
Approved by [Authorised Signatory] [Designation] Date: [Date]
Start clearance a week before the last day, not on it
Revoke system access at the end of the last working day
Have exit interviews done by HR, not the reporting manager
Pay F&F on time — delays damage employer reputation
Timelines for payment of final dues, gratuity and statutory processing are set by the Labour Codes and related rules. Review this template with your payroll and legal advisers.
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Frequently asked questions
What is included in full and final settlement?+
Salary for days worked, leave encashment as per policy, bonus or incentives due, gratuity if eligible, reimbursements, minus recoveries such as notice shortfall or unreturned assets, as permitted by law.
When should F&F be paid?+
Wage rules set time limits for paying wages due on separation, and gratuity has its own timeline. Many companies aim to settle within a few working days to the end of the following month — check the rules applicable to you.
Can a relieving letter be withheld?+
Withholding documents to pressure an employee is risky. Clear dues fairly and issue relieving and experience letters once the exit process is complete.
This policy sets out how [Company Name] transfers employees between locations and functions, so that business needs are met while employees are treated fairly and supported during relocation.
2. Scope
It applies to all confirmed employees whose terms of employment provide for transfer. Short-term deputations of less than [Number] months are covered by the Travel Policy.
[Company Name] believes that timely, sincere appreciation motivates people and reinforces our values. This policy sets out how contributions are recognised fairly across the organisation.
2. Scope
It applies to all employees on the rolls. Senior leadership members are eligible only for long-service awards.
Our employees know the kind of people who succeed at [Company Name]. This policy encourages and rewards them for referring suitable candidates for open positions.
2. Scope
It applies to all employees on the rolls and to all open positions listed on the internal referral portal, except roles marked 'not eligible for referral'.
This handbook explains how we work at [Company Name] and what we expect from one another. It summarises key policies; detailed policies are available on [Policy Portal]. Where the handbook differs from your appointment letter or applicable law, the appointment letter and law prevail.
2. About the Company
Brief history, vision, mission, values and organisation structure of [Company Name].
1.1 Purpose: This manual sets out the human resource policies, procedures and practices of [Company Name] so that employees are treated fairly and consistently and the company complies with applicable labour laws. 1.2 Scope: It applies to all employees on the company's rolls at all offices, plants and sites, including [Work Location]. Consultants, trainees and contract workers are covered where expressly stated. 1.3 Precedence: Where this manual conflicts with any law, certified standing order or individual appointment letter, the law and then the more favourable term for the employee will apply.
Chapter 2: Definitions
Company: [Company Name] and its branches.
Employee: any person employed on the company's rolls on a permanent, probationary or fixed-term basis.
Reporting Manager: the person to whom an employee reports as per the organisation chart.
HR: the Human Resources department or the person designated to perform the HR function.
Wages / Basic Salary: as defined in the employee's appointment letter and applicable law.
This policy sets out the types of leave available to employees of [Company Name], how leave is earned, applied for and approved, and how unused leave is treated, so that employees can rest and attend to personal needs while business continuity is maintained.
2. Scope
This policy applies to all employees on the rolls of the company at all locations, including probationers, unless their appointment letter states otherwise. Where state laws, standing orders or settlements provide more favourable terms, those terms will prevail.
This policy sets out how attendance is recorded at [Company Name], what is expected of employees regarding punctuality and absence, and how attendance issues will be handled fairly and consistently.
2. Scope
It applies to all employees on the company's rolls at all locations, including probationers and fixed-term employees. Contract workers follow this policy as applied by their contractor and site rules.