Separation Policy Ver 1.1

Size: px

Start display at page:

Download "Separation Policy Ver 1.1"

Moses Mitchell
6 years ago
Views:

1 Separation Policy Ver 1.1 Policy Owner: HR & OD Release Date: 9 September 2006 Applicable to: All TSPL and TIPL employees No. of Pages: 4 (Four) Implementation Responsibility: HR & OD Effective Date: Immediate Approved by: MD 1. Objective To establish and implement standard guidelines for the process of Separation and Exit of employees in the organization. 2. Scope This policy is applicable to all employees in the organization. 3. Definitions 3.1 Voluntary Resignation: This refers to a situation when an employee decides on his own to move out of Tally for any specific reason(s). 3.2 Involuntary Resignation/termination: This may be applicable in the following situations: a. When an employee is not performing as per expectations and has not shown improvement despite feedback, coaching, etc., and when he/she is not found suitable for any other role/position within the Organization b. When an employee is found to be involved in any activity that is a breach of work ethics/discipline or an activity that is against or harmful to the spirit and or functioning of the Organization c. When an employee absents himself without intimation and approval for more than 5 working days 4. Notice Period 4.1 The general Notice Period policy guidelines are as under. a. There would be no notice period for termination of employment from either side with effect from the respective dates of joining as follows: - (i) President/Senior VP - 2 months. (ii) VP to Manager - 4 months. (iii) Below Manager - 6 months. b. Subsequent to the respective periods mentioned above, there would be a one month notice period for termination of employment from either side. c. No Leave is permitted during the notice period. d. No Leave Adjustment is made against notice period. e. Notice period recovery (where applicable) is done as part of the full and final settlement. HR-BTP-001-Ver 1.0 Page 1 of 5

2 f. HODs/Supervisors are requested to clearly mention the Last working day and the notice period recovery/waiver on the hard copy of the resignation and in the mail as applicable with due sign off before it is forwarded to HRD. 4.2 Exception recovery of Notice Period: In exceptional cases The Head of the Department may exercise discretion in either relieving an employee by "Waiving" off a 'part' or 'full' Notice Period based on the exigencies of work/employee's state of mind/attitude/lead time for handing over to a suitable replacement etc., or recommend for recovery of part or full notice period. 5. Process: 5.1 In case of Voluntary Resignations: a. When an employee wishes to resign from the services of the company he/she should approach his/her supervisor. b. The supervisor along with the HOD should find out the reasons and make all attempts to retain based on the merits of the candidate and organization's need. c. If employee still wants to resign, he/she shall submit a written resignation letter duly signed in hard copy to the supervisor/hod. d. The resignation letter needs to be approved/signed off by the HOD, with mention of acceptance, last working day/relieving date, notice recovery if any/waiver of notice if any as applicable and forward the same to the corporate HR dept. e. The supervisor/reporting manager should instruct the employee to complete knowledge transfer and to do a proper hand over of activities to the employee identified to take over. The supervisor/manager also needs to ensure this is done completely before signing the clearance form. f. The respective Business HR representative needs to inform and forward the resignation letter with acceptance to the corporate HR. g. Corporate HR, on the day of receipt of accepted resignation letter, will inform Corporate Accounts. This is to enable Corporate Accounts to calculate and prepare information regarding all salary deductions; mobile phone deductions; extension phone deductions; tour advances etc. by the Last Working Day of the employee. h. Outstation candidates may, if need be, submit their resignations through , if the supervisor is in a different location. However, the same needs to be approved/accepted by the HOD with sign off on a hard copy to be sent to Corporate HR Salary (for the month during which the employee resigned) shall be put on hold in the following cases: a. Where there no notice period to be served, either due to length of service or due to waiver of notice period b. Where notice is served (or being served) but the last working day is before the 10 th of the ensuing month Withholding of salary in the above two cases is done to ensure that recoveries, if any, can be done before final settlement is done. However, all monies due to an employee will be settled as a part of his/her Full and Final Settlement (FFS) as per 6 below. HR-BTP-001-Ver 1.0 Page 2 of 5

3 5.1.3 In cases where the employee is serving notice period but the last working day is after the 10 th of the ensuing month, current month s salary will be released but the salary for the ensuing month (for the no. of days worked) will be released as a part of the FFS. 5.2 In case of Involuntary Resignations: a. In situations listed under 3.2 (a) and 3.2 (b) above, the Company reserves the right to either terminate the employee or ask him/her to resign. Normally, in case of poor performance an employee shall be asked to resign and in case of disciplinary issues an employee shall be issued a termination letter. However, the HR Head/Function Head can make an exception to this with sufficient reason and justification. b. If an employee is asked to resign, the resignation acceptance, knowledge transfer and hand over shall be as applicable to a voluntary resignation. c. Withholding or release of salary as per 5.1.1, and shall be applicable in these cases as well. In case of involuntary resignation due to poor performance, the Company shall pay an amount equivalent to the notice period due, if applicable, to the employee. However, in cases where the notice period is not applicable, no amount will be payable by the Company. In case of involuntary resignation due to disciplinary issues and termination cases, the amount in lieu of notice period will not be payable For employees absenting themselves from work, as mentioned in 3.2 (c), the process will be as follows: a. A Warning Letter is sent after 5 working days of the employee s absence without information, requesting him/her to report to work immediately or to get in touch with their supervisor. b. In the absence of a response to the above letter by telephone / / mail within 5 days of its delivery, a termination letter shall be sent. c. The salary of such an employee will automatically be on hold until he comes back and completes the knowledge transfer/handing over processes. However, for these cases salary (to the extent payable) will be processed and statutory payments (Provident Fund, Professional Tax, etc. will be remitted to the respective Government Departments. No salary will be paid or credited to the employee until clear instruction from Corporate HR is sent to that effect. 6. Exit/Clearance Process: The exit/clearance process shall be the same for both voluntary and involuntary resignations, as given below: a. On the last working day of the employee, subject to receipt of the resignation letter duly accepted and signed by the HOD / Supervisor, the corporate HR department or the Admin. Coordinator (at the respective locations), shall issue the forms and initiate the clearance formalities. b. The resigned employee shall get the clearance formalities duly completed with all the concerned depts. and submit the filled forms to the corporate HR dept. In case HR-BTP-001-Ver 1.0 Page 3 of 5

4 of regional employees, the respective Admin. Coordinator must ensure the completed form is forwarded to Corporate HR. c. Corporate HR shall conduct an exit interview in an objective manner and record the feedback. At other locations the respective Regional Manager shall conduct the exit interview and forward the Exit Interview Form to Corporate HR. d. Corporate HR issues a resignation acceptance letter, on the last working day and advises payroll agency for full and final settlement. e. Full and Final settlement is done and handed over to the employee/authorized representative within 15 days from the date of relieving the employee. f. Payroll agency will also issue the experience certificate and relieving letter along with the final settlement g. The original exit interview form and photocopies of clearance form and resignation letter are filed at corporate HR for records. 7. Interpretation In case of clarifications/concerns related to the interpretation of this policy, the decision of the Head HR shall be final and binding. 8. Exceptions Any deviation from the above policy must be approved by the MD. Version Control/Revision History: Ver. No. Revision/Amendment Details 1.1 i. All paragraphs numbered ii. Paragraphs 3, 5.2, 5.1.g, 7 and 8 added iii. Other contents restructured/fine-tuned Effective Reviewer Date Cdr. N.A. Mohan, AVP- Corp. HR & OD Signature Approver MD HR-BTP-001-Ver 1.0 Page 4 of 5

5 HR-BTP-001-Ver 1.0 Page 5 of 5

Distribution List 3 II. Version History 3 III. Objective 3 IV. Scope 3 Provisions 4

Exit Policy I. Distribution List 3 II. Version History 3 III. Objective 3 IV. Scope 3 V. Provisions 4 1. Resignation Letter 4 2 Exit Clearance 4 3 Full & Final Settlement 5 4 Salary Account 6 5 Employees