Web Analytics

fundsforNGOs - Grants and Resources for Sustainability

Grants and Resources for Sustainability

You are here: Home / Microfinance Human Resources / Exit/Separation Policy: Human Resource Policy for Microfinance Companies

Exit/Separation Policy: Human Resource Policy for Microfinance Companies

Purpose

To lay out the procedure on how exits from the department will be managed. Exits deal with resignations, abscondment, retirements, boarding due to ill health, completion of fixed-term contract and dismissal.

 Resignation

  1. An employee may resign from the Company of his/her free will at any time by giving required notice in writing or email as mentioned in the appointment letter to their reporting manager and copy to line HR.
  2. Human Resource staff will acknowledge receipt of resignation before it takes effect and it can only be withdrawn with the consent of the Head of Department on condition that the resignation has not taken effect.
  3. An employee should submit his/her resignation and shall indicate reasons for the resignation in writing.
  4. All separations arising out of resignation or termination must have an approval of the concerned Department Head.
  • All resignations must be submitted to the immediate reporting manager and a copy to line HR.  The Department Head will send the recommendation to the HR Manager who shall conduct the exit interview.
  • Once an employee puts his/her resignation, the regional HR would give a call to these employees within 48hrs to speak and know the reason and if any concern which can be resolved.
  • When required, the HR department will issue the Resignation Acceptance Letter basis the manager’s approval, informing employee about his/her relieving date with a copy to the concerned Department Head.
  • Date of resignation would be the date of notice of resignation and the reporting manager cannot hold back the acceptance/ rejection of resignation more than 5 days
  • Employee would be able to withdraw the resignation within the next 3 days post the acceptance/rejection given by the manager
  • When an employee resigns/ terminated all the documents/handbooks / assets/ id cards/ visiting business cards are to be handed over to his/her Department Head.
  • If an employee is relieved on any day between 1st to 15th of a month, then he / she is not entitled for leaves due for that month.
  • If an employee happens to leave on any day between 16th to the end of the month then he / she is entitled for leaves due for that month

 Terms of Notice Period

  1. Employees must give at least two calendar month’s written notice with effect from the date of resignation. In the case of limited duration contract, if not renewed with mutual consent, lapse occurs, for which no advance notice of termination is required.
  2. Short notice can be approved if there are no liabilities and the Head of the department or the designated representative approve the same in consultation with the Head HR. Short notice is anything less than the prescribed period.
  • This is at the discretion of the Management to waive the required notice period on request or the employee may be relieved on his/her surrendering equivalent salary applicable for the notice period
  • Any employee requesting such reduction is liable to pay to the Company Salary in lieu of the reduction in notice period so requested.
  1. No leave is entertained during the notice period; if in case of any exigency; prior approval from the supervisor & HR is essential. The notice period will then get extended by the same number of days for which leave was availed during the exit process/ notice period
  2. Earned Leave of an employee will not be adjusted against the notice period. The resigning employee may en-cash his/her earned leave along with full & final settlement on the basic salary

Full and Final settlement

  1. The employee must repay all the loans availed off and any other dues not later than date of the resignation take effect.
  2. Employees are required to fill up the No Dues Clearance Form within the last week of their notice period and submit it to the respective line HR, so that the Full and Final settlements can be processed at the earliest and could be made available to the employee on the last working day.
  3. The documentation should be completed by the employee, department supervisor and Regional HR before the last working date of employee
  4. It should be noted that RO/ Hub Offices should not pay the requisite dues unless instructions are received from the HO-HR team expressly in written.
  5. In case of in complete documents and non receipt of the No dues clearance form within 30days from the date of resignation, a formal communication would be sent to the permanent address of the exited employee stating the case as closed
  6. The F&F at the head office would be processed within a maximum of 15 days from the time the No dues clearance documents, incentive details and exit interview forms reach HO HR.
  7. The complete full & final settlement process would be cleared within 60 days from the last working day.
  8. It should be kept in mind that if the F &F process falls in between the Payroll Cycle, the Payroll cycle holds precedence in all circumstances. In such cases, the F & F will be processed after cessation of the Payroll cycle for the month.
  9. For processing of the F&F, only the last pay cycle would be held back for the settlement and the 1st month salary could be paid out at the discretion of the management
  10. HR will issue a Relieving Letter and Salary Certificate to the employee after ensuring compliance of all the above and the Full and Final Settlement Form to accounts for disbursement.

In case of Absconding employees

  1. In case an employee will be on leave/ absent for seven consecutive days without permission / intimation to reporting manager/ RM/ HOD, the later will be responsible to inform the HR Department before expiring of the 7th working day from the date of absence of that employee.
  2. HR Department will issue an advisory note (through registered post only) to the employee at his permanent residence or corresponding address within 24hrs from the date of the intimation for same by reporting manager/RM/ HOD.
  3. In case there is no communication from the absconding employee concerned, the HR department will issue a show cause notice to the employee within the 8th day of unauthorized absence to his / her permanent address.
  4. If the employee fails to respond / report to his nearest Regional Office within 15 days from the date of posting of letter, the Management can take legal action against employee concerned and for that matter it will be send to the legal department.
  5. All damages caused or any amount with standing would be recovered by the initial security cheque deposited
  6. There would be no full and final processed for the absconding employees

 Termination

Termination – involuntary employment termination initiated by the Company.

Layoff– involuntary employment termination initiated by the Company for non-disciplinary reasons

  1. The company may terminate an employee giving them the notice pay as per the terms and conditions mentioned in their appointment letter
  2. The management reserves the right to prematurely terminate the employment under certain conditions such as:
  • In capacity or in efficiency of an employee where in the employee has constantly failed to perform to the required standard notwithstanding all possible remedial measures, including opportunities for improvement provided by the management
  • Misconduct: As employees are required to uphold the highest standard of professional and personal behavior, as laid down in the Company’s Code of conduct towards their clients as well as other employees
  • Though committed to a progressive approach to corrective action, certain rule infractions and violations of standards are grounds for immediate termination of employment.
  • A suitable replacement is found in which case all accrued benefits will be paid to the employee up to the date of termination
  • These include but are not limited to: financial embezzlement, theft in any form, insubordinate behavior, vandalism or destruction of Company property, inadequate care of company equipment, untruthfulness about personal work history, skills, or training, divulging Company business practices, and misrepresentations of the Company to prospective customer, the general public, or an Employee.

Exit-Interviews

  1. Exit Interview will be done for all bands/ grades of employees across the Company
  2. An exit interview form is given to the resigned employee, whose resignation has been accepted by the management.  The duly filled form is received from the employee, based on which the exit interview is conducted.
  3. Exit interview should be conducted on the last working day of the resigned employee. It can also be conducted telephonically, if required.
  4. An analysis of the inputs received at the time of exit should be done by the line HR and feedback to be provided to the entire department heads.

Information gathered during the exit-interview from the employees would be used only to plan for corrective actions/ interventions in the organization and will NOT be used against the employees.