CSPL : Separation Policy

● Enforcement Date: May 2024

● Version: 5

PURPOSE:
To provide guidelines to employees, Managers, and Payroll team for settlement of all accounts
related to the Employee in the event of separation (Voluntary or Involuntary) from the
Company.

DEFINITIONS:

Employee: All employees/agents/advisors on the Company’s payroll and on third-party payroll. This
policy shall apply to all employees regardless of their gender, ethnicity, age, and education

Voluntary dismissal:

Voluntary dismissal may include the following:

● Resignation - Resignation is the type of Separation wherein an employee voluntarily leaves the
services of the organization. Resignation is a personal decision of the employee and is initiated
when an employee provides notice of his/ her intent to resign through HRMS request. The date
of Resignation is referred to as the Resignation date.
● Retirement - Retirement is a type of Separation wherein an employee on reaching a
predetermined age (retirement age defined for the organization) retires from the organization.
● Expiration or completion of the employment contract.
● Death - Separation upon death occurs in the unfortunate event of an employee’s demise while in
the services of the organization.

Involuntary dismissal may include the following:

● Discharge for cause.

● Discharge without cause.

Discharge for cause is a type of Separation wherein an employee is asked to leave the organization on

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
account of non-performance/ misconduct / violation of security/an ethics violation including violation of
Cars24 Code of Conduct. The decision to terminate an employee is taken by the supervisor/HRBP/senior
management. Termination of the employee is discussed and conveyed to the employee vide his or her
supervisor/ HRBP / senior management. Any kind of disciplinary action or progressive discipline that
results in termination may be considered “for cause”. Other wrongful behaviors or actions that result in
immediate dismissal are also considered “for cause”. Examples of such termination of employees include
circumstances where an employee:
● Breaches their contract of employment
● Is discovered guilty of fraud, embezzlement, or other kinds of illegal actions against the company
● Is guilty of discriminatory behavior or harassment
● Is guilty of unlawful or immoral behavior on the job
● Is guilty of willful neglect of job responsibilities
● Is discovered to have caused unacceptable intentional damage to the company’s assets or
company’s brand image.
● Continuously disregards company policy

The list is not exhaustive therefore, discharge for cause remains at company’s discretion. It must
however always reflect an unacceptable behavior or action that violates legal or company guidelines and
may result in financial and non-financial damages for the company, other employees, or society.

Discharge without cause can occur when the company decides that the services of an employee are no
longer needed. In general, this does not refer to an employee’s conduct. Reasons for discharge without
cause may be layoffs, rearrangement of a department, or redefining of a position. In cases where an
employee must be terminated without cause, the company is obliged to give notice a specified amount
of time prior to the date of termination depending on the time of service, age of the employee, or
position. If the employee has to stop working before the date of termination, the company will still
provide compensation for the time remaining, specified as “pay in lieu of notice”, but this discretion lies
with the company.

Severance pay: This will be decided on a case-to-case basis and will be paid in lieu of notice period, this
may apply to cases of discharge without cause only. The discretion to calculate the Severance Pay lies
with the Company, only.

Absconding - An Employee's absence from work for more than 3 consecutive working days without
prior intimation and permission from his supervisor/manager is deemed to be an absconding case and
hence should result in separation from the organization.

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
LWD: Last day on the Company's payroll. Last working day will be determined based on the notice
period, regardless of whether it falls on a Saturday, Sunday, weekly off, or holiday

Notice Period: Mandatory duration to be served by an Employee before leaving the Company as
per employment contract/ appointment /offer letter, calculated as the number of calendar days
between the date of Resignation and LWD (both days inclusive). If Employee takes leave during the
notice period, Company reserves the right to extend the notice period for the Employee
accordingly. If Employee stops reporting to work before the relieving date, Company reserves the
right to initiate the absconding proceedings against the Employee.

Full & Final (F&F): A final statement prepared by the Company's /payroll department
summarizing all the recoverable and payable monetary items to an Employee due to separation.

ELIGIBILITY APPLICABILITY:
Exit policy applies to all the employees on the payroll of CSPL and related entities.

PROCEDURE:

1- Employee Initiated (Normal Resignation) – Employee decides to separate from the organization and
submits his/her resignation.
Process flow for employee-initiated:

● The employee will apply for resignation on HRMS and will inform his Reporting Manager,
Manager will in turn discuss the same with HR and revert to the employee.
● Prior to the employee's last working day, he/she needs to complete all exit-related formalities.
On completion of the formalities by the exiting employee, the full & final settlement is initiated
and the employee receives the experience letter. (**For timelines refer to the General guidelines
section)
● The Full and Final amount is paid to the employee after recovering all
assets/advances/outstanding dues, if any, together with an experience letter on completion of all
formalities with regard to exit. Completion of full and final settlement and release of experience
letter will be subject to the concerned employee having completed handing over formalities to
the satisfaction of his immediate reporting authority and having obtained clearance from all
concerned departments

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
2. Employer Initiated (Asked to Leave or Termination, Absconding )
● In cases of involuntary dismissal, the Manager must submit a request to the HR team via email
before the date of separation. Discharge for cause justifies immediate suspension until the
necessary documentation for termination has been gathered. In all instances, a termination
meeting with the employee, manager, and HRBP should be scheduled.
● In cases of discharge without cause, the employer must officially notify the employee of the
termination a specified amount of time in advance. General Guidelines (Notice Period, Handover
& Others)

● Notice period:
○ The notice period is provided to assist with the handover of charge/ responsibilities to the
next incumbent.
○ In the case of an employee-initiated Resignation, the employee is required to serve the
required notice period. For all purposes, the date resignation initiation on HRMS will be
the start date for computing the notice period duration.
○ The period of the notice period shall be as per the details mentioned in the appointment
letter or any modification made therein by a management order or last grade as
applicable.
○ In the absence of any notice given or part notice given, then an employee is liable to pay
(for shortfall in Notice period on a pro rata basis of gross salary).
○ Notice period may be waived in full or part based on the discretion of the management
(B6 and above)
● Handover:
○ Handover should be given to the concerned employee nominated by the Manager in
order to continue with smooth business operations with all clients & within the branch.
○ Employees dealing with clients are required to inform his/her clients of their exit move
from the company and should give the contact information of their replacement.
● Others:
○ salary for the last/current month will be on hold upon resignation and will be released
with the final settlement. The resigned employee is required to clear off any outstanding
dues towards (any) company loan, Advance expenses claim or any salary advance prior to
the date of leaving.
○ An employee serving his / her notice period will not be entitled to any subsequent salary
revision including any benefits that would be applicable with retrospective effect.

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
Understanding FnF Recoverable/Payables:

An illustrative list of all the required sign-offs and recoverable/payable items which are included in the
F&F settlement is mentioned below. Unless stated otherwise, the treatment of an item is the same in
the Resignation, Termination, Retirement, Absconding, and Transfer cases.

Salary advances: Any outstanding advances availed by the Employee are recovered in the F&F
settlement.

Company Assets: If the Employee has availed any asset(s) under IT Asset policy, the purchase
value of the assets is recovered from the F&F along with applicable sales tax and other charges
pertaining to the asset(s).

Notice period buyout: If the Employee has received any additional Up-front payout such as Notice
period buyout (which may include but not limited to Loyalty Bonus, Joining bonus, and Retention
Bonus) at the time of joining or during the employment period and resigns within the period as
defined in the letter, it is recoverable.

Similarly, if the Company has reimbursed the notice period recovery done by the previous employer,
it is recoverable from the Employee if he/she leaves the Company within the lock-in period as per
terms and conditions of the offer/appointment letter.

Any tax loss due to such recovery is borne by the Employee

Joining/Relocation Expenses: If Company has incurred any relocation related expense for the
Employee E.g. Guest House, Air Fare for self or dependents) etc, and the Employee resigns within 12
months of the relocation date then the relocation expenses is recoverable from the Employee.

Company Group Insurance: The Employee & his dependents are excluded from Company group
Insurance schemes such as medical, and accident, etc. effective the Last working day

Transfer Case: Same as any other exit case except, Employee & his dependents are covered as per
new entity insurance policy.

PAYABLE ITEMS

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
Salary arrears: Monthly payroll processing will be stopped for the Resigned Employee. The salary
due from the date of last processed payroll till the relieving date will be paid along with F&F.
Employee should upload his pending investment/ Flexi proofs (on HRMS ), and pending bills for
reimbursement e.g. Conveyance on Happay before the respective SPOC clears the NDC to avoid
excess deduction.

Increment would not be processed if it is falling due while the employee is serving the notice
period.

Variable Compensation: Employee is not eligible for the Variable Payout (either full or prorated) if
serving notice / exited on or before the date of payout. This also includes cases where the Employee
serves the notice period till the last day of the month.

Deceased Case: Employee is eligible for Variables (Bonus in CTC)on a prorated basis. The HRBP
should ensure that the amount is a part of the F&F statement of the employee. and for Gratuity :
One year ex-gratia amount to be provided to the employee nominee subject to approval from
CXO.

Retiral Benefits: Gratuity benefits as per the “Payment of Gratuity Act” will be given in FNF
settlement to employees given FnF is payable.

Provident Funds: Exited employee can withdraw or transfer his/her PF provident fund after 60
days from the date of leaving by using https://unifiedportal-mem.epfindia.gov.in
● Username - UAN Number
● Password- Can be reset by using a mobile number

Stock Options: - Vested ESOPs will be vested with us for 20 years and all unvested ESOPs will be
canceled after leaving CSPL and entities. Employees can check his/her ESOPs by using
https://cars24.esopezee.com/login
● Username Your Employee Code
● Password - can be reset by using a personal email ID.

Employee’s Personal Email ID will be updated on ESOP portal within 60 days after leaving Cars24

ESOP buyback- Cars24 will inform employees on their personal email ID about the buyback of
ESOPS when the company initiates it.

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
FINAL CLOSURE
Once all the dues, clearances, and sign-offs mentioned above are completed, the F&F team works
on the settlement. Employees are expected to review and validate the F&F Settlement which is
shared with them within 45 days from the Last working day. If the F&F settlement is payable to the
Employee, the same is transferred to the Employee's salary bank account as acknowledged by the
Employee within 7 working days. In case of recovery, the Employee needs to pay the amount in the
name of the respective legal entity.

The company can, in its sole discretion, choose to waive off certain recoverable items such as Notice
Pay, New Hire Cost, Joining Relocation Cost, or Service Agreement cost. Once the above process is
complete, the Payroll team, which is the only authorized team to issue the experience letter, issues
an experience letter to the Employee.

We will adjust your pending dues and close your F&F settlement our self, if you abscond or leave the
company without completing exit formalities. you can approach us within 90 days from date of
leaving but thereafter you will have no rights to ask for your F&F settlement

CORRECTIVE ACTIONS / EXCEPTION HANDLING

Any exception to the policy needs to be signed off by the Human Resource Team (unless a
different exception approval matrix is specifically defined in the policy). All exceptions must be
approved in advance.
Apart from above listed causes, any exception(s) to be taken care post CXO level / HR Head as
per the merit of the case.

ABSCONDING CASES:
○ Days 1-2: The L1 manager or supervisor must attempt to contact the employee by phone on
the first and second working days if the leave is unplanned or unreported.
○ Day 3: Should there be no response, the L1 manager or supervisor is required to send a
formal email to the employee’s official email address, with a copy to the HR Business Partner
(HRBP).
○ Day 4: (Employee abscond from 3 consecutive working days)
■ System to send a task to L1 to take action and Notification mail to L1, HRBP &
Employee.

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
 ■ The HRBP should attempt to reach the employee using both the employee’s
personal and emergency contact numbers. If there is still no contact by the end of
Day 4, the HRBP should send a follow-up email, adding it to the existing email
thread and copying the employee's personal email.
○ Day 5:
■ System to send a task to L1 to take action and Notification mail to L1, HRBP &
Employee.
■ If the employee remains unresponsive, the HRBP should send another email
directly to the employee’s personal email, ensuring to maintain a record of all
communications.
○ Day 6: Access to all HRMS will be automatically revoked by system.
○ Final Notice and Termination Process: If there is no response by the end of the established
timeline (Day 5 EOD), the HRBP will issue a final termination notice for absconding. This
includes necessary legal notifications such as show cause and termination letters. The fifth
day after unreported absence is considered the employee’s last working day, and salary
discontinuation is initiated from the last reported working day.
○ Exit Procedure Initiation: The HRBP initiates the formal exit process on the HRMS.
○ If an employee returns to work after their access has been revoked but before their final exit
is processed in the HRMS, the HR Business Partner (HRBP) must manually change the
employee's status in the self-service portal from "No" to "Yes" to reactivate their HRMS
access.

TRANSFER CASES

1. From CSPL to CFSPL to CSPL - Any employee who moves from Cars24 Services Pvt ltd to
Cars24 Financial Services Pvt ltd or vice versa will have to tender resignation on Darwin
box and the above-mentioned process will be followed.

For both transfers, the recoverable and payables will be as follows:

Happay claims: Employee must clear up his pending Happay claim (s) before his relieving date else
any unsettled recoverable amount (e.g. happay card, expense report, etc) are recovered in the F&F,
In such a case, the Employee can submit his pending bills and approved report for reversal of such
recovery within 30 days of relieving post where no reversal on account of Happay adjustment can
be made in F&F.

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
Salary advances: Any outstanding advances availed by the Employee is recovered in the F&F
settlement and balance is paid as advance post-transfer to different entities. The employee will
be able to avail the advance benefit in this case.

Gratuity:

Movement from CSPL to CFSPL or vice versa - Gratuity tenure will be transferred to new
employee code.

Company Assets:

For Exit employees: There is no recovery, the asset will be returned to the IT team and/or can
be transferred to the employee in the transferred entity basis IT team sign off.

For Internal movement employees: The Asset will be transferred to the new employee code
basis IT team sign off.

Notice period buyout: Any upfront payment will have recovery clawback however if employees have
paid after completing the duration of payment then there will be no recovery ex - Notice period
buyout, retention bonus should be paid once complete the duration of mentioned period in the
appointment letter.

Joining/Relocation Expenses: Any expenses pertaining to relocation are waived off and not
recovered at the time of transfer. However, if the employee leaves the Firm from the transferred
entity before the defined period in the letter, it will be recovered from F&F settlement from the
transferred entity.

Company Group Insurance: The Employee & his dependents are excluded from Company group
Insurance schemes such as medical and accident etc. effective from Last working day (LWD). They
will be added to the GMC/GPA policy of the transferred entity and cover will begin from the date of
transfer.

PAYABLE ITEMS:
Salary arrears: Monthly payroll processing is not stopped for the Resigned Employee. The salary
due from the date of last processed payroll till the relieving date is paid in the same month.
Employee should upload his pending investment/flexi proofs (on HRMS portal), and pending bills

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
for reimbursement e.g., Conveyance on Happay before the respective SPOC clears the NDC to avoid
excess deduction.
Increment would be processed if it is falling due while the employee is serving the notice period.

Variable Compensation : Employee is eligible for the Variable Payout (either full or prorated) in
the month of the LWD.

Retiral Benefits: Gratuity benefit as per “Payment of gratuity Act” will be given in FNF settlement
to employees within 30 days from LWD (if payable).

Provident Funds: - Exited employee can withdraw or transfer his/her PF provident fund after 60
days from date of leaving by using https://unifiedportal-mem.epfindia.gov.in
Username - UAN Number Password- Can be reset by using mobile number

Stock Options: - The ESOP vesting continues and there is no change in the vested ESOPs.

No Dues Clearance Process -

Selective Applicability of NDC basis roles

Below are the NDC’s that get triggered prior to LWD for employees whose exit is initiated
on HRMS .

● IT Primary clearance (Gmail & Slack Access)

● IT secondary Clearance (Assets (Laptop, Mobile etc. ))
● Finance (Happay)
● Admin (ID cards & Visiting cards)
● User Access Clearance (Admin Panel Access)
● Legal Access Clearance (Power of Attorney & Committee Membership Revocation)
● SAP access clearance (SAP Access revoke)
● Banking access clearance (Banking Access revoke)
● CJ NDC (Tools - Paint Meter, Tire Gauge etc.)

➔ NDC "Banking Access clearance" is applicable only for the employees in the Finance and HR
Department (along with the rest of the above mentioned NDCs)
➔ NDC "SAP Access clearance" is applicable only for employees in the Finance Department.

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
 (along with the rest of the above mentioned NDCs)
➔ FNF will be processed once all the NDCs are closed / approved by the respective SPOC on
Darwinbox.
➔CJ NDC will be applicable only to employee aligned under “External Designation = Senior
Evaluation Engineer, Evaluation Engineer & Technical Retail Associate”

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com
 Edits and Version History:

Enforcement
Version Propose By Reviewed by Approved By
Date
Head HR Transformation -
1 04-Apr-22 - CHRO –Mrinal Sinha
Manoj Kharkwal
Head HR Transformation -
2 23-May-22 - CHRO –Mrinal Sinha
Manoj Kharkwal
Head HR Transformation - Head Shared Services –
3 16-Nov-22 -
Manoj Kharkwal Nitin Khera
Deputy Manager Business Associate Director HR
4 01-Sep-23 -
Partnering - Mayuri Vishnoi Core- Jyoti Chopra
Senior Manager - Rahul Kamal Avutapalli - Head HR Transformation -
5 May-24
Sharma Legal Head Manoj Kharkwal

Cars24 Services Private Limited

Registered Office: 10th Floor, Tower- B, Unitech Cyber Park, Sector-39, Gurugram, Haryana, India 122001
Corporate Office: 6th Floor, SAS Building, Ch. Bktawar Singh Road, Medicity, Shivaji Nagar, Gurugram, Haryana, India
122001
www.cars24.com | CIN: U74999HR2015FTC056386 | Helpline: +91 124 4009383 | email: roc@cars24.com