<Company Name>
HR Policy
Separation
Policy
Policy Effective Date: <DD/MM/YY>
No part of this documentation may be reproduced or transmitted in any form or by any means, electronic
or mechanical, including photocopying or recording, for any purpose without express written permission of
the CEO of <Company Name Here>.
© 2021, <Company Name Here>. All Rights Reserved
Revision History
Ver Change Description Prepared By Reviewed By Approved Date
No. By
Table Of Contents
1
Table Of Contents 3
1. Objective 4
2. Scope and Applicability 4
3. Definition/Glossary 4
4. Policy / Process 5
4.1. At-will Employment 5
4.2. Voluntary Separation 5
4.2.1 Procedure 5
4.3. Involuntary Separation 6
4.3.1 Procedure 6
4.4. Death of Employees 6
4.4.1 Process 6
4.5. Final Pay 6
4.6. Health Insurance 7
4.7. Return of Property 7
4.8. Exit Interview 7
4.9. Eligible for Rehire 7
5. Special Circumstance and Exception 8
6. Non-compliance and Consequence 8
1.Objective
The objective of a Separation policy of <Company Name Here> is to ensure that
employee terminations, including voluntary and involuntary terminations, including
an unfortunate event of death of an employee, are managed in a professional
manner with minimal disruption to the workplace.
2.Scope and Applicability
This separation policy deals with the procedures to be followed both by the
employee who is exiting the Company and relevant stakeholders within <Company
Name Here>.
This policy applies to all employees of <Company Name Here>.
This policy is owned by <Name of the Person> and reachable @ <Contact Number>
and <email address>
3.Definition/Glossary
Term / Abbreviation Definition / Expansion
4.Policy / Process
4.1. At-will Employment
Employment with <Company Name Here> is voluntary and is subject to
termination by the employee or <Company Name Here> at will, with or without
cause or at any time and in accordance with the terms specified in the respective
employment contracts. Nothing in this policy shall be interpreted to conflict with
or to eliminate or modify in any way the employment-at-will status of <Company
Name Here> employees.
4.2. Voluntary Separation
A voluntary termination of employment occurs when an employee submits a
written notice of resignation, including intent to retire, to his / her Manager and is
accepted by the Manager.
4.2.1 Procedure
√ It is highly recommended to the employee to have a formal discussion
initially with the Manager about his/her intent to resign. If the employee still
wishes to exit from the organisation, then a formal letter of resignation
addressed to the Manager is required, specifying the last date of work.
√ Employees are required to provide the minimum separation notice as
specified in their respective employment contracts
√ Upon receipt of an employee's resignation, the manager will notify the HR
by forwarding a copy of the resignation letter / email and any other
pertinent information (e.g., employee’s reason for leaving, last day of
work).
√ Employees have to coordinate with various internal departments for
returning company property and assets and obtain NOC from each of
them.
√ The completed NOC will need to be handed over to HR / Payroll
departments for their further action.
√ HR will review the employee’s post-termination benefits status and
conduct the employee’s exit interview.
4.3. Involuntary Separation
An involuntary termination of employment is a management-initiated dismissal
with or without cause, including a layoff of over [n days].
4.3.1 Procedure
√ Before any action is taken to involuntarily discharge an employee, the
employee’s Manager must request a review by the termination review board,
which consists of the CEO of <Company Name Here>, Head of HR, employee’s
Department Head and employee’s Manager.
√ The termination review board will be responsible for reviewing the circumstances
and determining if discharge is warranted. If the board recommends discharge,
the employee’s manager and an HR representative will notify the employee.
√ The employee’s manager should complete a resource replenishment form and
notify HR and payroll of the last day worked by the employee.
4.4. Death of Employees
A termination due to the death of an employee will be made effective as of the
date of death.
4.4.1 Process
√ Upon receiving notification of the death of an employee, the employee’s
manager should immediately notify HR.
√ The benefits administrator will process all appropriate benefit payments
from the various benefits plans, including statutory payments.
√ The employee’s manager should ensure that the payroll office receives
the deceased employee’s incentive / special payment / bonus details, if
any.
√ HR will coordinate with the next of kin of the deceased employee for
documentation and to explain next steps
4.5. Final Pay
An employee who resigns or is discharged will be paid all contractual dues
through the last day of work, plus for any unavailed paid leaves and after
adjustment of any outstanding loans, advances or other statutory dues or any
recovery as a part of the contractual obligations may have with the Company. In
cases of an employee’s death, the final pay & benefits due to that employee will
be paid to the deceased employee’s estate or as otherwise required under state
law.
4.6. Health Insurance
Medical or dental or vision insurance coverage (if any) terminates on the last day
of the month the employee separates from the Company.
4.7. Return of Property
Employees must return all company property at the time of separation, including
cell phones, keys, laptops, identification cards, etc. Failure to return any item will
result in deductions from the employee’s final paycheck. An employee will be
required to sign a wage deduction authorization to deduct the costs of such items
from the final paycheck. Under appropriate circumstances, <Company Name
Here> may pursue criminal charges for failure to return company property.
4.8. Exit Interview
The HR department will contact an employee who voluntarily resigns to schedule
an exit interview on the employee’s last day of work
5.Special Circumstance and Exception
Any Deviation to this policy has to be approved by HR. Any changes to the policy
has to be approved by Legal and Compliance.
6.Non-compliance and Consequence
Non compliance of this policy including falsification of information or data from
the exiting employee will lead to criminal proceedings while any internal
employees will be viewed seriously by HR and appropriate action taken,
including up to termination of employment contract.