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What is the Employee Exit Process?
The exit process is the series of steps that are taken when an employee leaves an organisation, whether voluntary or involuntary. This process involves many administrative, legal and procedural tasks. The exit process maintains organisational stability, ensures compliance with laws and preserves good relationships with the exiting employees. Having an efficient employee exit program ensures the employee’s departure is handled professionally.
Essential Documents Required for Employee Exit
To have a smooth and organised exit several key documents need to be prepared and managed. The following are 5 such documents that play a major role in the employee exit process.
- Acceptance of Resignation:
This document confirms that the employer has received and accepted the resignation letter. It explains the resignation process and the upcoming steps. It covers details including confirmation of the resignation receipt, the employee’s last day of work and any other details around the exit process.
- Exit Interview Form:
An exit interview form is used to get feedback from the leaving employee about their experience with the organization. Their response will be useful for improving workplace and employee engagement.
The form generally asks questions like the employee’s work environment, reasons for leaving and suggestions for improvement. The exit interview can be a questionnaire or a discussion conducted by HR.
- NDA(Non-Disclosure Agreement) or Confidentiality Agreement:
The confidentiality agreement is used to protect the company’s secrets and confidential information. If an employee is leaving a company after working for a certain period, he will probably have access to some of the confidential information. So there’s a high risk of this information being misused. Therefore, it’s better to have a confidentiality agreement, that prevents the employee from disclosing this information.
A confidentiality agreement states details like what information is considered confidential, how long is the agreement, what are the restrictions after leaving the company, etc. It is always advised to make employees sign this document as it will protect the company’s sensitive data and trade secrets.
- Final Settlement Statement:
The final settlement statement covers details regarding all the financial transactions due to the employee. It ensures that all financials are settled before the employee leaves. These include details of unpaid salary, bonuses, allowances, deductions for unreturned company property etc. It is always recommended to double-check all the financial data and calculations to prevent future disputes.
- Relieving Letter:
A relieving letter is a formal document issued by the company to the employee upon his/her resignation. It’s a proof that the employee has fulfilled all his obligations and has no pending dues with the company and is free to join another company.
The letter should state the employee’s tenure, job title, and relieving date. It should also confirm that the employee has completed all exit formalities.
