The beauty of having termination and exit procedures in the employee handbook lies in the clarity it brings to a sensitive process. It ensures both the company and the employee know what to expect when someone leaves, creating a sense of order and professionalism.
By outlining these steps, the handbook provides a roadmap that reduces confusion, emotional strain, and potential conflicts. Employees feel respected, and companies protect themselves from legal disputes.
This structured approach also reflects a company’s commitment to fairness and transparency, helping maintain positive relationships, even during tough moments like termination or resignation.
Termination and Exit Procedures
Termination and exit procedures outline the steps and guidelines a company follows when an employee leaves, whether voluntarily or through dismissal. These procedures cover important details like notice periods, final pay, returning company property, and conducting exit interviews.
Including these procedures in the employee handbook ensures that both the company and the employee understand their rights and responsibilities. It promotes transparency and fairness during the exit process.
Having clear termination and exit procedures helps prevent misunderstandings, legal issues, and ensures a smooth transition for both parties. It protects the company while respecting the departing employee’s rights.
Step 1: Describe the Resignation Process
Begin by explaining the process employees should follow if they decide to resign. This includes the required notice period, how to submit a resignation, and what to expect during the notice period.
Example:
“If you wish to resign from your position at [Company Name], you must provide a written notice at least 30 days before your intended last working day. The resignation letter should be submitted to your immediate supervisor and copied to HR. During the notice period, you are expected to complete any pending work and assist in the transition process. Your final pay, including any unpaid wages and accrued leave, will be processed after your last working day.”
Step 2: Outline the Termination Procedures
Next, explain the process the company follows if it decides to terminate an employee. This section should cover both voluntary termination (e.g., retirement) and involuntary termination (e.g., dismissal due to performance issues or misconduct). Be clear about the steps involved and the employee’s rights.
Example:
“Termination of employment at [Company Name] may occur due to various reasons, including retirement, redundancy, poor performance, or misconduct. In cases of involuntary termination, the following process will be followed:
- Performance Review: If termination is due to poor performance, a formal review will be conducted, and the employee will be given an opportunity to improve.
- Notice of Termination: A written notice of termination will be provided, outlining the reasons for termination and the effective date.
- Final Pay: The employee’s final pay, including any unpaid wages, accrued leave, and other entitlements, will be processed within 30 days of the termination date.
- Exit Interview: An exit interview may be conducted to discuss the reasons for termination and to collect feedback on the employee’s experience with the company.”
Step 3: Explain the Clearance Process
Detail the steps involved in the clearance process, including returning company property, completing any final documentation, and settling any outstanding obligations. This ensures that all loose ends are tied up before the employee’s departure.
Example:
“Before your last working day, you must complete the clearance process. This includes returning all company property, such as laptops, mobile phones, ID cards, and keys, to the IT or Admin department. You will also need to complete a clearance form, which includes sign-offs from various departments, confirming that all obligations have been settled. Your final pay will be released only after the clearance process is completed.”
Step 4: Discuss the Exit Interview
The exit interview is an opportunity for the company to gain valuable feedback from departing employees. Explain the purpose of the exit interview and what employees can expect during this process.
Example:
“As part of the exit process, we may conduct an exit interview. This interview is an opportunity for you to share your experiences working at [Company Name] and provide feedback on what we’re doing well and where we can improve. Your feedback is important to us, and it will be used to enhance our workplace practices. The exit interview is voluntary and can be conducted in person or online.”
Step 5: Provide Information on Final Pay
Finally, provide details on how the final pay will be calculated and when it will be released. This should include information on unpaid wages, accrued leave, and any other entitlements the employee is due.
Example:
“Your final pay will include any unpaid wages up to your last working day, payment for any accrued but unused leave, and any other entitlements as per your employment contract. Deductions for any outstanding loans or obligations will also be applied. The final pay will be processed and released within 30 days of your last working day, provided the clearance process has been completed.”
Sample Chapter
Chapter 11: Termination and Exit Procedures
Resignation Process
If you wish to resign from your position at [Company Name], you must provide a written notice at least 30 days before your intended last working day. The resignation letter should be submitted to your immediate supervisor and copied to HR. During the notice period, you are expected to complete any pending work and assist in the transition process. Your final pay, including any unpaid wages and accrued leave, will be processed after your last working day.
Termination Procedures
Termination of employment at [Company Name] may occur due to various reasons, including retirement, redundancy, poor performance, or misconduct. In cases of involuntary termination, the following process will be followed:
- Performance Review: If termination is due to poor performance, a formal review will be conducted, and the employee will be given an opportunity to improve.
- Notice of Termination: A written notice of termination will be provided, outlining the reasons for termination and the effective date.
- Final Pay: The employee’s final pay, including any unpaid wages, accrued leave, and other entitlements, will be processed within 30 days of the termination date.
- Exit Interview: An exit interview may be conducted to discuss the reasons for termination and to collect feedback on the employee’s experience with the company.
Clearance Process
Before your last working day, you must complete the clearance process. This includes returning all company property, such as laptops, mobile phones, ID cards, and keys, to the IT or Admin department. You will also need to complete a clearance form, which includes sign-offs from various departments, confirming that all obligations have been settled. Your final pay will be released only after the clearance process is completed.
Exit Interview
As part of the exit process, we may conduct an exit interview. This interview is an opportunity for you to share your experiences working at [Company Name] and provide feedback on what we’re doing well and where we can improve. Your feedback is important to us, and it will be used to enhance our workplace practices. The exit interview is voluntary and can be conducted in person or online.
Final Pay
Your final pay will include any unpaid wages up to your last working day, payment for any accrued but unused leave, and any other entitlements as per your employment contract. Deductions for any outstanding loans or obligations will also be applied. The final pay will be processed and released within 30 days of your last working day, provided the clearance process has been completed.
