The Separation Policy defines set procedures for handling all aspects of employee resignation or termination. It is aimed to ensure smooth separation of the Employees from the organization.
When an employee decides to separate from the organization it is essential to identify and analyse the reasons of employee separation & also to try and retain good performers.
The Exit process is applicable to employees.
Exit Formalities are not applicable to any person who is associated with the organization for the completion of a particular project.
1. Employee Initiated (Normal Resignation) – Employee decides to separate from the organization and submits his/her resignation.
Process flow for employee initiated
• Employee will tender his/her resignation to the IRA, IRA will in turn discuss the same with his/her reporting authority/HR and revert to the employee.
• Prior to the employees last working day, he/she needs to complete all exit related formalities. On completion of the formalities by the exited employee, the full & final settlement is initiated and the employee receives the relieving letter. Refer to handover checklist appended below.
• The Full and Final amount is paid to the employee within 45 days after recovering all advances/outstanding dues, if any, together with a relieving letter on completion of all formalities with regard to exit.
• The employee is expected to serve his full Notice Period. Waiving of Notice Period or its adjustment against leave accrual is at the discretion of the organisation.
• Completion of full and final settlement and release of relieving 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 as given in the clearance form.
2. Employer Initiated (Asked to Go or Termination)
• Asked To Go – Due to breach of code of conduct or performance related concerns the organization may initiate disciplinary process leading to employee separation. The employee needs to complete all exit formalities & leave the organization with immediate effect without serving notice period. In such cases employee does not receive a relieving letter, only termination of service letter is provided, whereas Full & Final settlement is carried out post the last working day.
• Incase an RM is exiting from the system (be it employee or employer initiated) before the completion of 6 months, As VP / AVP approval is a must along with IRA approval. VP approval is a must to process the exit.
• In such cases employee receives relieving letter and Full & Final settlement is carried out according to the policy on the last date of his service.
• In any type of Exit mentioned above the employee’s IRA has to immediately inform HR-department and concern VP on submission of written resignation to him/her.
• In Case an employee is not reporting to the branch for consecutive 3 days without informing his/her IRA / TM / AM. This should be informed to the HR on immediate basis. HR in turn will issue an absconding notice to the employee. Salary of such cases will be kept on hold till further revert from the employee and his IRA.
Escalation Matrix (HR operations):
[Immediately after resignation/exit]
Corporate HR/AVP HR [Case beyond 50 days]
Head HR [Case beyond 70 days]
In any type of Exit IRA has to inform HR dept immediately after written resignation submission to him/her by an employee.
Exit formality applies to all the employees on the payroll of IIFL. The employee who wishes to separate from the organisation is expected to serve notice period as per appointment letter.
Responsibility of the Immediate Reporting Authority in charge (IRA):
• The Immediate Reporting Authority (IRA) will inform his/her AVP/ VP of the employee’s exit and seek their approval for the same immediately after the resignation along with tentative last working day.
• The IRA should inform the HR department via email immediately after the resignation from employee. Email should indicate the name of the exiting employee, employee code, date of resignation, likely/Actual exit date, leave details, notice period details, Recovery detail( if any) and reason for leaving.
Format to intimate HR team about employee exit:
Emp. Code Emp. Name Date of Resignation Date of Leaving Reason For Leaving Recovery details(If Any) Leaves Taken Notice Period Served Yes/NO Notice Period Deduction Days FNF to be processed Yes/NO Relieving Letter to be processed Yes/NO
• Ensure that the exit formality i.e. exit form is properly filled and duly signed by either IRA/TM/AM/AVP/VP, is sent to HR dept before the final exit date.
• The IRA should ensure that the job responsibilities are handed over to the replacement /other suitable employee if any.
• The IRA must ensure that the assets & belongings of the company (Simcard, Laptop, mobile, data card etc) that are in the possession with the employee are taken back on or before his/her last day of working in company.
• The IRA should ensure that exiting employee’s application login id (Wire ID, TTADV, TT browser, GL exe, I-win, Access Card etc) gets blocked. He should get clients de-mapped from his/her employee ID in case of relationship Manager & signoff client ledger at the Branch level. Recover any loss from the employee. Get the branch audited in case of gold loan. On the employee’s last working day, the IRA is required to mail the “Activation department” and get the exiting employee’s TT Manager/dealer ID blocked permanently at the branch level.
• In case of Absconding/employee not contactable IRA should fill the exit form and submit to HR with “Emp. Absconding “remarks in place of employee’s signature.
Responsibility of HR:
• HR must receive exit request from immediate reporting authority (IRA) along with VP approval, post which exit will be updated in the system which will also deactivate the exit employee’s Iwin. It is mandatory for the exit form to be submitted to the HR team to process the full & final settlement of an employee.
• Post receiving exit request from IRA, HR will notify the same to the concerned VP in advance (before LWD) to obtain required approval within
• The exit form will be checked by HR team for completion, same will not be accepted in case the form is incomplete or HOD approval is not received for the exit. Exit form will be sent back to the concerned IRA.
• Please note that, relieving letter can only be issued to exiting employee only on having approval from his/her AVP/VP and after ensuring that all exit formalities have been completed.
• In case an employee resigns it is mandatory to conduct an exit interview. Same needs to be conducted as per the matrix attached. Exit interview data needs to be captured in the format provide below.
• In case any negative feedback is provided by the employee same needs to be captured & sent to the RHR on the same day & post receiving clearance from RHR exit to be marked.
• RHR in turn will investigate and in case of any issues, same will be highlighted to Head HR Operation / Head Recruitment.
• Exit interview will be conducted by RHR upto Senior Manager level. Assistant Vice President and Associate Vice President exit interview will be taken by Head HR Operation / Head Recruitment.
• Above Vice President level exit interview will be taken by Head HR Operation / Head Recruitment/Head HR.
• For the employer initiated separation, an exit interview may not be necessary but all the other formalities need to be completed.
General Guidelines (Notice Period, Handover & Others)
• 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 required notice period. For all purposes, the date of intimation of resignation 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 as per recommendation received from the IRA & HOD.
• Handover should be given to the concerned employee nominated by the IRA 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 the incumbent (New RM) or IRA who will be handling their accounts. Not doing so, may impact the FNF process.
• A follow up and communication by the new RM should be made to all clients keeping the Branch manager informed. Relationship Managers have to inform the Branch manager and get his/her clients de-mapped from his/her employee id.
• Once HR receives intimation of an employee’s resignation, his/her salary for the last / current month will be stopped and released with the final settlement.
• The resigned employee is required to update all leave details and clear off any outstanding dues towards (any) company loan, Advance expenses claim or any salary advance prior to date of leaving.
• Employees granted ESOPs are required to purchase the shares due to them before the last date of service with the company. In the absence of such purchase, the employee would lose all rights on the ESOPs granted.
• 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.
• Date of leaving change should not be done in backdate, in case of valid reason for Back date DOL, concern VP and HR Operation Head approval would be require.
The following formalities will be followed in case of an employee’s death while in employment with the company:
• The date of death will be construed as the last date of employment. The date of death will be as specified on the death certificate.
• The salary in this case will be computed for the last month up to and including the last date of employment and will be credited to the deceased employee’s salary account or to (or his / her nominee account).
Full & Final Settlement:
• Full & Final settlement will be processed post completion of exit formalities. Calculation will be done based on number of days notice period is served, number of leave taken & leave adjustment recovery if any. The entire payment is done in the month following the exit month subject to recovery of mobile bill, meal voucher, Petty cash, Loan EMI, BVC, Company asset damages, fee, credit card etc.
• Full and Final settlement should be done for all exit cases, like voluntary or company initiated.
• IRA/Accounts/Admin should inform HR about the expected recovery (if any) before Final settlement.
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