Get Latest HR practices activities updates of Human resource at myhr online portal

Resignation / Retirement / Termination


Resignation, retirement and termination are different terms of detachment of employees from the organization in different situations.

Resignation is the term used when employee is leaving the organization for any reasons which may include better opportunity or any other  personal reasons. Retirement is the bereavement of employee as per industrial standards which happen at the age of 55-60 years of the employee.

Termination is done by employer for employee which occurs due to any unethical behavior or non-performance. Each of this processes  includes various formalities which are described below.

After the application of disciplinary steps, if it is determined by management that an employee’s performance does not improve, or if the employee is again in violation of Organization Name practices, rules, or standards of conduct, following a Decision-Making Leave,

Employment with Organization will be terminated.

1. Separation Procedure

a. Resignation, Acceptance &Final Clearance

Resignation is a voluntary act initiated by the employee to terminate employment with Organization. Any employee leaving the organization should address his letter of resignation in writing to the immediate Superior. Organization request at least a month written notice of resignation from employees.

The terms of relieving would be concluded in the mutual interest of the employee and Organization by the Head of the Department in consultation with the concerned superiors and forwarded to the Manager with the recommendations and conclude terms of release. The notice period for release shall be for a month. The notice period shall be on either side.

HR department should be informed immediately on receipt of any resignation from any employee. Upon such information HRM department should inform Accounts/ Stores. The payroll for the employee should be tagged and payment should be made along with final settlement after the exit interview.

The clearing functional heads should conclude dues and put remark “No Dues/ Dues” recoverable in clear monetary value with communication to the employee.

The employee should deposit the clearance form to HR department. HR department will issue the acceptance of resignation.

HR department to work out relevant details and forward the form to Accounts department on the last working day. Accounts department will compute it accordingly.

Separation should be dealt with very carefully.

b. Calculations


Total days worked till close (for operator) and nearest month (for staff) (Rounded off nearest 15 days) subject to maximum encash limit as per Leave Policy. Basic of Staff means Basic only and for operator Basic means Basic + HRA.


15/26 X Last Drawn Basic X total years of service. This shall be for employees, who have completed minimum service of 5 full years on Organization’s service only.

Pro-rata LTA

Entitlement / 12 X Months Worked.


Pro-rata entitlement rounded off to nearest Month – against bills received.

Notice pay

Shall be payable/ recoverable as the case may be in accordance with the remark/conclusion of the relieving authority. The pay for this shall be treated as Basic Salary of an employee. The days payable /recoverable should be clarified by HRM department after verifying the personal file.


Shall be paid along with the final settlement at 8.33 % to all operators and staff whosoever qualifies for Bonus as per Bonus Act.

Such of those employees (Office boys, Drivers, Sweepers, and Guards) who have been provided with uniforms should be asked to deposit their uniforms before clearance of dues to HRM department as per policy.

Such of those employees (Office boys, Drivers, Sweepers, and Guards) who have been provided with uniforms should be asked to deposit their uniforms before clearance of dues to HRM department as per policy.

c. Submission Of Identity Card

Such of those employees, who have been issued an Identity Card should be asked to deposit their Identity Card before clearance of dues to HRM department.

d. Return of Property

Employees and associated members are responsible for all the Organization Name properties, materials, or written information issued to them or in their possession or control. Employees or associated members must return all Organization Name property immediately upon termination of employment.

Permitted by applicable law, Organization Name may withhold employees or associated member’s cheque or final pay cheque. The cost of any items that is not returned when required. Organization may also take all necessary action deemed appropriate to recover or protect its property.

e. Full & Final Payment

In case of staff the payment has to be made through accounts payee cheque only. In case of operators, preferred mode of payment should be accounts payee cheque only however if the operator does not have a bank account then a bearer cheque should be issued in his / her name. Immediately after issuing the cheque to the operator, an employee from HRM / Accounts department should take the operator to the bank and get his / her payment & hand over to the operator. In case we have the slightest doubt about the operator intensions, in such cases the HRM department should get the final settlement of accounts in front of area inspector / Labour officer.

f. Service Certificate

The organization will provide a service certificate to all the staff member along with their clearance

2. Exit Interview

Organization Name has the policy to conduct the Exit Interview for all the employees. As soon as a resignation is received, HR Executive should fix the exit interview with HR Manager.

Detail should be filled in by the employee leaving the organization in the Performa provided by the HR department. This form should be completed & signed by him.

HR Manager would conduct the exit interview to know the strength and weaknesses of the organization, reason of leaving the organization and also have an informal discussion on the improvement.

HR Manager would keep the Head of the organization informed about the feedback received from the employee.

3. Retirement

Every employee shall retire on attaining the age of sixty years.

In the absence of a birth certificate, the date of birth as shown in the Identity Card of the employee concerned shall be deemed to be the age for the purpose on determining the retiring age. However, where only the year of birth is stated then it will be assumed that the employee’s date of birth shall be 31st December of that year as shown in the Identity Card.

The organization may in special circumstances and at its sole discretion offer a further period of employment beyond the age of sixty (60) years.

Any such re –employment shall be on one-year basis and subject to the employee being certified medically fit by the Organization’s doctor.

Such employee shall enjoy all the benefits normally accorded to permanent employees.

4. Termination

Termination of employment is an inevitable part of personnel activity within any organization and many of the reasons for termination are routine.

Below are examples of some of the most common circumstances under which employment is terminated:

Resignation   :       employment termination initiated by an employee.

Discharge      :       employment termination initiated by the organization.

Layoff            :      employment termination initiated by the organization because of  an                                             organizational change.

Retirement   :       employment termination initiated by the employee meeting age, length of     service, and any other criteria for retirement from the organization.

Organization will generally schedule exit interviews at the time of employment termination. The exit interview will afford an opportunity to discuss such issues as employee benefits, conversion privileges, repayment of outstanding debts to Organization, or return of Organization owned property.

Suggestions, complaints, and questions can also be voiced.

Nothing in this policy is intended to change the organization’s at-will employment policy. Since employment with Organization is based on mutual consent,

 both the employee and Organization have the right to terminate employment at will, with or without cause, at any time. Employees will receive their final pay in accordance with applicable state law.



Balance scorecard is necessary for achieving Goals of performance management
How the job analysis can best benefit to the company
What is the need of Performance Management?
Balance scorecard works excellent for strategic improvement of the Company.
Types of Employee Engagement Process implemented in the companies
Tools for Job Analysis
Types of Employee Engagement Process implemented in the companies
Balance scorecard is necessary for achieving Goals of performance management
Tools for Job Analysis
How the job analysis can best benefit to the company
What is the need of Performance Management?
What are the Benefits of Job Rotation?