How to Do Exit Clearance: No Dues Checklist for HR

Exit clearance, often called no dues, confirms that a leaving employee has returned company property, handed over work and settled any dues, and that the company has closed their access. When it drags, the full and final settlement drags with it, even though wages must be paid within two working days of the exit. This guide gives a department-wise checklist, a timeline that finishes before the last working day, fair handling of recoveries, and the sign-offs to keep on file.

Department-wise checklist

Every department that issued something to the employee, or holds a claim against them, signs off. Send each one only its own section, with the employee's name, code and last working day, so nobody has to read the whole form to find their part.

Reporting manager: handover of work, files and pending tasks
IT: laptop, charger, phone and SIM returned; data backed up; email and system access closed
Admin: ID card, access card, keys, locker, uniform and parking sticker
Finance: salary advance, loans, travel advances and pending expense bills
Stores or plant: tools, safety equipment and instruments issued
Sales: customer data, samples, company vehicle and collections deposited
HR: exit interview, documents, nominations and letters

A timeline that finishes before the last day

Start clearance the day the resignation is accepted, not on the last day. In a worked example, Suresh's last working day is 30 November. HR sends each department its checklist on 1 November with a deadline of 27 November. IT backs up his data and collects the laptop on 29 November. Finance confirms an advance of ₹12,000 to be recovered from his final dues. HR completes clearance on 30 November, and his final dues are paid within two working days of that date.

Recoveries and disputes

Recover only what is documented and permitted under the employee's terms and the rules on deductions from wages. Value lost or damaged assets fairly, at their depreciated value rather than the replacement price. If one item is disputed, pay the undisputed amount on time and settle the disputed part separately. Holding the entire settlement or the relieving letter over a missing charger turns a small issue into a formal complaint.

Access removal and records

Close email, VPN, business systems, the HR system and biometric access at the end of the last working day, and change any shared passwords the person knew. Forward email to the manager for an agreed period. Keep the signed clearance form with the final settlement record, so anyone can see what was returned, what was recovered and who signed.

Starting clearance on the last day
One department holding everyone else up without a deadline
Recovering the new price of an old laptop
Holding all dues over a small dispute
Access left open for weeks after exit

Step by step

Start when the resignation is accepted. In ZeniaHR, recording the resignation sets the last working day, and offboarding gives HR an 8-item exit checklist and a structured exit reason to record.
Send each department its section. Share the checklist with the employee's name, code, last working day and a deadline three working days before that date.
Collect assets and confirm handover. Collect equipment against the issue record, back up data first, and get the manager's written confirmation that handover is complete.
Confirm recoveries with evidence. List each amount to recover with its document. In ZeniaHR, recoveries go into payroll inputs as advance recovery or an adjustment deduction.
Remove access on the last day. Close email, systems and building access at the end of the last shift, and change any shared passwords.
Get final sign-offs. Collect each department's signature and date, and resolve any open item on the last working day.
Pay final dues within two working days. Calculate the settlement from the cleared record. In ZeniaHR, an off-cycle payroll run pays it without waiting for the monthly cycle.
File the clearance record. Keep the signed form with the settlement statement and the proof of payment in the employee's file.

Employee records and exits Payroll

See it on your own data

A 30-minute demo on a video call. We set up your departments, shifts and leave rules and show attendance, leave and payroll running for your team. Free for your first 50 employees.

Book a free demo See pricing

Frequently asked questions

What is exit clearance?

Exit clearance, also called no dues clearance, is the process of confirming that a leaving employee has returned company property, handed over work and settled any dues, with sign-off from each department concerned. It is completed before or on the last working day so the full and final settlement can be paid on time.

Can an employer hold salary until clearance is complete?

No. When an employee leaves, for any reason, wages are due within two working days. Plan clearance so it finishes by the last working day. If something is still missing, recover only documented and permitted amounts and pay the rest on time instead of holding the whole settlement.

What if an employee does not return a company laptop?

Write to the employee with a return date and the value that will otherwise be recovered, based on the laptop's depreciated value. If the terms allow it, deduct that amount from the final dues and pay the balance on time. For serious cases, such as data risk, involve IT and legal advice immediately.

Who signs the no dues certificate?

Each department that issued items or holds a claim signs its part: usually the reporting manager, IT, admin, finance, and stores or sales where relevant. HR signs last after checking every section, then uses the completed form to finalize the full and final settlement.