What is Last Working Day (LWD)? Meaning and Example

How the last working day is fixed

After a resignation, HR works out the LWD from the resignation date and the notice period in the appointment letter, then confirms it in writing. The date can move earlier through early release or a notice period buyout, or later if both sides agree to extend for handover. After a termination, the letter states the LWD, and for a retirement, the service rules fix it. Once confirmed, record the date in the HR system, so payroll, access removal and clearance all run to the same date.

What depends on the last working day

Mistakes in this one date spread quickly. A settlement worked out to the wrong day gives the wrong final salary, the wrong leave encashment and sometimes the wrong gratuity, and the relieving letter then disagrees with payroll.

• Final month's salary: paid days up to and including the LWD
• Leave balance up to the LWD, and encashment as per policy
• Gratuity eligibility, based on completed years of service up to exit
• Relieving and experience letters, which state the LWD
• Final payment of wages, due within two working days of leaving

Managing the day itself

Plan the last day in advance: a final handover meeting, return of the laptop and ID card, sign-offs on the clearance form, the exit interview if it is still pending, and a short goodbye from the team. Remove system access at the end of the day, not before, unless there is a risk. In ZeniaHR, recording the resignation sets the last working day and moves the employee to on notice, and Direct Payroll bounds paid days by the exit date, so the final salary uses the same date.

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