What are the formalities to be completed after resigning from a job


Planning to quit a job and need a checklist of what should be done before you leave? In the modern world switching jobs has become a trend as people are always in search of better work, better designation and better salary. But for an employee, there are some formalities that should be completed before leaving the old company and joining the new company. This article provides a useful checklist of things that should be accomplished by an employee before leaving the old company.

Introduction

The resignation of an employee from the company has become common nowadays and it is not a new thing anymore for both employee and an employer. When an employee resigns from a company there are certain important formalities that he or she should complete before their last working day in their old company. Completing these formalities are essential for a smooth transition of an employee from the old company to new company without any hassles. Hence last one week or so, after discussing with the HR employee needs to carefully list down the formalities he or she needs to complete before their last working day in the company. As such the last few days in the company can be quite busy for an outgoing employee.

Below are the things which should be taken care and formalities to be completed by a resigning employee before leaving his old company. These hold true especially if a person is working in an MNC or a big company which follows detailed processes.

Formalities to complete

  • Resignation approval - This is very important. Just sending a resignation email or a letter does not mean that it is accepted and you can sit and relax. Your boss and HR should accept the resignation first. Hence you should make sure that after submitting resignation you should personally talk to your boss or manager regarding it. It may be that your boss does not want to accept your resignation immediately and needs some time. It is also possible that he may want to discuss reasons behind your leaving and negotiate. So a personal discussion with your manager to clear out the things so that your resignation gets approved is very essential.

  • Last working day - After the resignation is approved this is another important factor to be considered. Depending on your joining date with the new company you need to see that your boss agrees to the relieving date you want. All the companies have their standard notice period which ranges from 2 to 3 months. If you are serving your full notice period then there is no issue. But nowadays many companies ask their new employees to join by shortening their notice period in their previous company due to project urgencies. When this happens then you need to check with your boss whether he agrees towards your earlier relieving. This will depend on your relationship with your boss and project needs. Sometimes I have seen that there are tussles between employees and their boss on relieving dates. In case your boss does not agree on relieving dates proposed by you then you need to get back to your new company to postpone the joining dates. So after your resignation is accepted it is important that you reach consensus on your relieving date after discussion with your boss.

  • After above things are done major obstacles are overcome you can relax a bit and start winding up your work while you are serving your notice period. Rest of the formalities normally you can start 7 to 10 days before your last working day. So what are these formalities?

  • No dues clearance- You need to get no dues clearance from different departments of the company as you might be using different resources from these departments. Below are some of the departments from which you need to get know dues clearance. Again this is just a broad list.
    Finance department:You need to take no dues clearance regarding any advance, loan, allowance etc you might have been availing. You need to settle all your dues and make sure that you owe nothing to the finance department. You need to remember that in most cases your last month salary will be put on hold once you resign and it is paid later after your leaving the company along with the full and final settlement. A company does this to recover dues from you if any. So you need to plan accordingly.

    Library:If your company has library facility and you have borrowed some books or journals then you should make sure that you return them and get no dues clearance.

    IT department:Any company provided desktops PCs, laptops, mobile phones, login username and password, access to sites, servers etc come under this department. Hence you should make sure that on your last working day you surrender all the stuff to the IT department and get their no dues clearance.

    Security: You also need to get clearance from security department of your company by submitting all the keys you have for drawers, cupboards, rooms etc. Your company id card which has smart card access to all the doors also needs to be submitted to the security department on your last working day. Submitting your company id card should be the last thing that should be done as you would require it to move about the premises and access different departments during your no dues clearance process.

    Your Manager: Getting clearance from your immediate manager or boss is equally important. Your boss will make sure that you have done all the knowledge transfer to your colleagues before leaving and also completed all your pending projects and work with the company.

    Human resources: HR department is the last where you have to go after getting no dues cleared from all the other departments. After checking all your clearances HR will handover to you provisional relieving and experience letter which you can produce to your new company at the time of joining.

  • EPF formalities- This is one of the most easily missed activity and often results in employees making revisits to their old company or following up with their colleagues later after leaving the company. Each company deducts PF and gratuity from the salary which gets deposited in company trust or with RPFC. So you need to decide before leaving whether you want to transfer it to the new company or withdraw it. In case you are planning to withdraw then set of forms needs to be filled up by you and submitted to your finance department. On the other hand, if you are planning to transfer it to your new company then no formality is required to be carried out before leaving. This is taken care when you join your new company where during joining formalities you are asked to fill up the PF transfer form.

  • Relieving and experience letter- These are very important documents from point of view of joining your new company. Most of the companies nowadays do not allow candidates to join them without proper relieving and experience letters from their previous employers. Hence it is of utmost importance and you should ensure that on your last working day you do not forget to collect them from the HR department. HR will at that time provide you with the provisional relieving letter and an experience certificate. Actual relieving and experience letter is sent after your full and final settlement is done with the company which may take about a month.

  • Knowledge transfer and handover- As a responsible employee of a company you should make sure that while you are serving your notice period you do a proper handover and knowledge transfer for the responsibilities handled by you to the new person who is there to replace you. This will also allow your boss to relieve you in time and approve your exit. If you leave some knowledge transfer and handover incomplete being careless and thinking that you do not care since you are leaving the company then your boss can possibly delay your relieving till you complete the things. Hence this is very important.

  • Conclusion

    Hence if you are working in a big company / MNC after resignation you need to be aware of all the formalities that you need to complete so that your leaving the organization is a smooth process. If this is not handled properly then you may need to waste time later after joining your new company in revisits, phone follow-ups etc which may be inconvenient. So never neglect these aspects and make sure that you complete everything. Last few days before leaving can be quite hectic for the employee as they need to move from one department to other physically to get the exit form signed. But nowadays many companies have made the no dues clearance process mostly online so an employee in some cases does not need to get physical signatures from the people by visiting them. With online clearance coordinating over the phone can do the job. But still, there will be few items where you need to visit the departments physically to get the clearance. So make your exit from the organization worry free by following the exit guidelines of the company.


    Comments

    Author: DR.N.V. Srinivasa Rao08 Mar 2018 Member Level: Diamond   Points : 3

    It is a full-fledged write up on the process to be followed for getting relieved from an Organisation. These days in many companies will have the accumulation of earned leaves up to a defined maximum extent. If the employees want to get relieved before the notice period the company adjust these leaves against the notice period and relieve them. Once the employee resigns and the employer decides to relieve him many companies feel that there is no point in asking them to continue. In such case, their notice period will be adjusted with these leaves.The employee has to get no dues certificate from all the departmental heads of the company before his final account is settled. Knowledge transfer and handing over the files is to be carried out as quickly as possible as it will create a problem for the company if it is not done properly. As a matter of fact, many companies will have a fallback arrangement for some key positions so that in case of any problem the company will not have a major set back.

    Author: Natarajan10 Mar 2018 Member Level: Diamond   Points : 7

    Quitting a job especially when one is in it for a few years can be an emotionally and socially taxing time. In this transition phase, we need to check that the procedures and policies are followed carefully so that future legal hassles are avoided.

    The notice period usually starts from the date the resignation is accepted. By mutual agreement at times the duration can be shortened otherwise it will be two months. In employments wherein the designation changes are time bound, it is better to check the dates while contemplating a resignation.

    For instance, promotion from a lecturer to assistant professor, assistant to associate in a teaching college, one can wait until the promotion comes after an interview and then reconsider the thought of resignation. If you still want to go ahead with it, then in some jobs you would be in a better position when you leave the job/firm.

    People going on sabbatical (leave without pay but without break in experience) often resign keeping the next job in mind. But sometimes they lose their years of experience because once we resign during the sabbatical, many institutions recognize the last working day before the sabbatical started as the actual last day in the institution. In this process, some would lose their valuable years of experience.

    Some places would have an overlap phase wherein the person leaving the job would be handing over the new employee who would be shadowing the previous employee. At such times, the outgoing staff has to be courteous and professional in making things easier for the new incoming staff.


    Having worked overseas and then coming back to India would have few documents needed for the IT returns. It is always worthwhile to check with the HR department of the overseas firm and the auditor or tax consultant regarding the paperwork before we completely wind down and come back to India.



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