Who signs off and what they check
The list differs by role. A sales executive may hold samples and a company phone, a site engineer may hold tools and safety gear, and a cashier's cash balance must be counted and handed over before exit. Build the checklist from what each role is actually issued.
- Reporting manager: handover of work, files and client contacts
- IT: laptop, phone, access cards, email and system access removal
- Admin: ID card, keys, uniform, locker and parking pass
- Finance: salary advances, loans, travel advances and imprest balances
- Stores or plant: tools, safety equipment and issued material
- HR: exit interview, documents and notice period status
Why clearance must be quick
Clearance feeds the full and final settlement, and the wages in that settlement carry a legal deadline: when an employee leaves for any reason, wages are due within two working days. A clearance that drags on for weeks puts the employer out of line with that timeline. Start clearance at the beginning of the notice period, not on the last day. Give each department a deadline, and let HR chase pending sign-offs. List every recovery with its amount, so the settlement can be finalized without back and forth.
Running clearance in practice
Use one clearance form or digital checklist with a line per department, each with a sign-off date. Where a department does not respond, escalate on a fixed date. Record any recovery with the reason and the employee's acknowledgement. In ZeniaHR, offboarding includes an 8-item exit checklist, and Direct Payroll bounds paid days by the exit date for the final salary. The full and final settlement guide covers the settlement steps.
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What is a no dues certificate?
A no dues certificate is a document issued by the employer confirming that a leaving employee has no outstanding dues to the company and has returned all company property. It is issued after every department signs the clearance form. New employers sometimes ask for it, and it also protects the employee if a claim is raised against them later.
Can a company withhold salary until no dues clearance is done?
Under the Code on Wages, wages must be paid within two working days when an employee leaves, so clearance should be finished within that window rather than used to delay payment. Legitimate recoveries, such as an unadjusted advance, can be deducted as the deduction rules permit. Starting clearance early in the notice period keeps the settlement on time.