IntroductionThe 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
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?
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.
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.
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.
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.