HR SOP – EMPLOYEE DEPARTURES

The purpose of this SOP is to establish a transparent, fair, and consistent process for handling employee departures,
whether voluntary or involuntary, while ensuring that decisions are free from bias, politics, or personal grudges.

1. VOLUNTARY EMPLOYEE DEPARTURE

1.1. Employee Resignation

Procedure:
1. The employee submits a written resignation to their immediate supervisor and HR.
2. HR acknowledges receipt of the resignation and schedules an exit interview within two weeks.

Exit Interview:
1. Conducted by HR personnel.
2. Focus on understanding the reason for resignation, gathering feedback, and discussing next steps.
3. Maintain a neutral and non-confrontational environment.

1.2. Notice Period

Procedure:
1. HR calculates the notice period based on employment contract and company policy. One day Notice in case of
under probation employee while 30 days’ notice in case of a confirmed Employee.
2. It is mandatory for all employees deciding to resign voluntarily to serve a full notice period.
3. Failing to serve a complete notice period as per their contract and policy/SOP will result in the payment of
their final settlement, such as PF, in terms of only Employee Share, where the Employer Share shall be
withheld.
4. Notice pay, in case of either voluntary or involuntary resignation, shall be computed on a pro-rata basis with
no provision of leaves. Applicable deductions shall also be made in this regard.
5. All leaves during the notice period shall be unpaid.

2. INVOLUNTARY EMPLOYEE DEPARTURE

2.1. Performance Improvement Process (PIP)

Procedure:
1. Identify performance issues through regular performance reviews and feedback.
2. Initiate a PIP if performance concerns persist.
3. HR collaborates with the employee and their supervisor to develop a performance improvement plan with clear
expectations and timelines.

Scenario:
1. If the employee successfully completes the PIP, monitor performance closely.
2. If improvement is not achieved, proceed to the next steps.

2.2. Termination Process

Procedure:
1. HR conducts a thorough investigation into the performance issues, ensuring all relevant parties are consulted.
2. HR notifies the employee of the decision to terminate their employment and schedules a termination meeting.

Termination Meeting:
1. Conducted by HR with a witness present.
2. Clearly communicate the reasons for termination, referring to documented performance issues and the PIP.
3. Provide information on final pay, benefits, and return of company property.
4. Address any questions the employee may have.
3. GENERAL PRINCIPLES FOR BOTH SCENARIOS
3.1. Confidentiality

Procedure:
1. Limit the dissemination of information related to employee departures to those who need to know.
2. Safeguard employee privacy during and after the departure process.

3.2. Documentation

Procedure:
1. Maintain detailed records of all interactions, including resignation letters, performance evaluations, and
termination meetings.
2. Document reasons for decisions to ensure transparency and accountability.

3.3. Communication

Procedure:
1. Communicate employee departures to relevant stakeholders in a professional and respectful manner.
2. Emphasize the company's commitment to a fair and unbiased process.

4. FINAL DAY EXIT PROCESS

4.1. Exit Formalities

Procedure:
1. On the final day, the departing employee is required to return all company property, including access cards,
laptops, and any other issued items.
2. HR conducts a final clearance meeting to ensure that all outstanding matters are addressed.
3. Employees and HR complete and sign the necessary exit documentation, including the clearance form, and
confirm the return of company property.

4.2. Settlement Process

Procedure:
1. HR initiates the settlement process, which includes calculating the final settlement amount.
2. The final settlement comprises any pending salaries, benefits, and the settlement of the notice period.
3. Deductions are made for any outstanding loans or advances as per company policy.

4.3. Handover and Knowledge Transfer

Procedure:
1. Before departure, the employee is required to hand over any pending work and provide relevant documentation
or information to ensure a smooth transition.
2. HR ensures that necessary handovers are completed and that knowledge transfer occurs as needed.

4.4. Conducting an Exit Interview

Procedure:
1. HR conducts a comprehensive exit interview to gather feedback on the employee's experience, reasons for
departure, and suggestions for improvement.
2. The feedback collected is analyzed to identify areas for organizational enhancement and development.

4.5. Farewell and Communication

Procedure:
1. Organize a farewell gathering or communication to acknowledge the departing employee's contributions and
wish them well in their future endeavors.
2. Communicate the departure internally, ensuring that the team is aware of the transition and any changes in
responsibilities.

4.6. Providing References

Procedure:
1. HR provides employment references upon request, adhering to company policies and legal obligations.
2. Ensure that the reference provided is factual and does not include subjective opinions.

4.7. Exit Survey

Procedure:
1. Provide departing employees with an opportunity to complete an exit survey anonymously.
2. Use the feedback gathered to identify areas for improvement in the organization's policies, procedures, and
work environment.

5. IMMEDIATE TERMINATION EXIT PROCESS

5.1. Termination Meeting

Procedure:
1. HR schedules a termination meeting as soon as the decision is made.
2. The meeting should be conducted by HR with a witness present.

5.2. Return of Company Property

Procedure:
1. The terminated employee is required to return all company property immediately.
2. HR ensures the prompt retrieval of access cards, laptops, and any other issued items.

5.3. Disabling Access

Procedure:
1. HR promptly disables all access to company systems and premises.
2. Ensure that the terminated employee's access to sensitive information is restricted.

5.4. Settlement Process

Procedure:
1. Initiate the settlement process, including the calculation of any pending salaries, benefits, and accrued leave.
2. Deductions are made for any outstanding loans or advances per company policy.

5.5. Exit Interview (Optional)

Procedure:
1. Conduct an exit interview if circumstances allow.
2. Focus on obtaining feedback and understanding the employee's perspective.

5.6. Communication to Team

Procedure:
1. Communicate the termination to relevant team members in a professional and discreet manner.
2. Ensure that the team is informed about any changes in responsibilities.

5.7. Legal Compliance

Procedure:
1. Ensure that the termination is in compliance with local labor laws.
2. Provide the terminated employee with information.

5.8. Providing References

Procedure:
1. Provide employment references upon request, adhering to company policies and legal obligations.
2. Ensure that the reference provided is factual and objective.