Resignations during a live project
An engineer who resigns during erection or commissioning takes knowledge the project needs. Set notice periods by grade, for example 30 days for junior engineers and 60 to 90 days for discipline leads and managers, and use the notice for a structured handover to a named successor. Recording the resignation fixes the last working day and puts the employee on notice, which is site HR's signal to start clearance. Agree any early release with the project manager in writing.
Site clearance before the person leaves
Clearance at a remote site has to happen before the employee boards the train home, or it never happens properly. The site HR officer runs the exit checklist with each department and does not release the relieving letter until every item is cleared or settled.
- Client gate pass and ID card returned to the client's security
- Open permits closed and handed to the successor
- Drawings, test packs and site records returned
- PPE, tools and instruments cleared by stores
- Camp room vacated and mess dues settled
- Laptop, phone and SIM returned to admin
Fixed-term closure and demobilization
When a project is completed, fixed-term engagements end on their date, and gratuity is paid pro rata even without five years of service. Plan demobilization in phases as disciplines finish, and give people their end dates in writing well ahead. Permanent staff are offered the next posting. Retrenching a permanent employee with a year or more of continuous service needs one month's written notice stating reasons, or wages instead of notice, and compensation worth 15 days' average pay for every completed year. Record the right exit reason for each case.
Settlement, exit reasons and the rehire list
Work out the settlement before the last day: salary to date, leave encashment, pending overtime and gratuity where due, less recoveries such as advances or mess dues. Run it as an off-cycle payroll and pay within two working days of the exit. For gratuity, an engineer on wages of ₹39,000 with seven completed years has a day's wages of ₹1,500 on the common 26-day basis, so 15 x ₹1,500 x 7 = ₹1,57,500.
Pick the exit reason carefully from the structured list. A year later, the pattern tells you whether engineers leave for money, for location, or because the next posting was too far from home. Keep good engineers on a rehire list for the next award.
How to set it up in ZeniaHR
- Record the resignation in the employee record to set the last working day and move the employee to on notice.
- Set notice days by grade in the Work terms policy, both for probation and after confirmation.
- Have the site HR officer run the 8-item exit checklist, covering gate pass return, site records, stores and camp clearance.
- Choose the exit reason from the 20 structured reasons, keeping resignation, fixed-term end and retrenchment apart.
- Add leave encashment, pending overtime and recoveries as payroll inputs, and settle the account through an off-cycle run.
- Release payment inside two working days, and keep copies of the relieving and experience letters on the employee's file.
Read more about employee records and exits in ZeniaHR.
Roles this applies to
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What happens to EPC staff when a project ends?
Permanent staff are usually offered a posting at the next project, and some resign rather than move. Fixed-term contracts end on their date, with gratuity paid pro rata. Retrenching permanent staff with a year of service needs one month's written notice or wages in lieu, plus 15 days' average pay per completed year.
Why should client gate passes be returned at exit?
The gate pass belongs to the client and allows entry into their plant. An unreturned pass is a security concern for the client and can strain the relationship. Make its return an item on the exit checklist, cleared by site HR before the employee leaves the site.
How is gratuity calculated for an EPC engineer?
Gratuity is due after five years of continuous service, at 15 days' wages for each completed year on last drawn wages. For wages of ₹39,000 and seven completed years, a day's wages on the common 26-day basis is ₹1,500, so gratuity is ₹1,57,500. Check any case with the gratuity calculator.
How soon must full and final be paid to staff leaving a remote site?
Wages are due within two working days of the exit, wherever the employee worked. Start the settlement when the resignation is recorded, collect site clearance through site HR during the notice period, and pay through an off-cycle payroll so distance does not delay it.