Resignation, notice and the last working day
Record the resignation in ZeniaHR on the day it arrives. That sets the last working day from the notice days in the work terms policy and moves the engineer to on notice, which tells the project manager, finance and IT that the clock has started. Notice after confirmation is often 60 or 90 days in IT, with per-grade overrides for senior roles. Early release is a business call: if the replacement is ready and knowledge transfer is done, letting the engineer go early may cost less than a disengaged final month.
Worked example: a notice buyout
Rahul has a 90-day notice period and a monthly gross of ₹84,000. His new employer wants him in 70 days, so the shortfall is 20 days. If your appointment letter recovers notice shortfall on gross pay with a 30-day month, the day rate is ₹84,000 divided by 30, which is ₹2,800, and the recovery is ₹2,800 x 20 = ₹56,000. Enter it as an adjustment deduction in the final settlement. Whatever basis you use must match the appointment letter, so check the letter before quoting a buyout figure to the engineer.
Knowledge transfer and access removal
A good handover in IT is written down, not just spoken. Ask the engineer to document the modules they own, open tickets, deployment steps and client contacts, and schedule shadow sessions with the replacement in the first half of the notice period rather than the last week. Inform the client early where the contract asks for it. On the last day, remove VPN, repository and client system access, collect the laptop and access card, and complete the 8-item exit checklist in ZeniaHR with an exit reason from the 20 structured reasons.
- Module and code ownership notes in the team wiki
- Open tickets reassigned with context
- Deployment and on-call runbooks updated
- Client access and VPN removed on the last day
- Laptop, charger and access card returned
Full and final settlement for an engineer
When an employee leaves, wages are due within two working days, so the settlement has to be ready before the last day, not after it. It usually covers salary for days worked, leave encashment for eligible EL, any variable pay due under the bonus policy, notice recovery or buyout, joining bonus clawback, and gratuity for engineers with five years of continuous service, at 15 days' wages for each completed year. Paid days in Direct Payroll stop at the exit date, and an off-cycle run pays the settlement without waiting for month end.
How to set it up in ZeniaHR
- Record the resignation in Employees so the last working day is set from the notice days and the engineer moves to on notice.
- Keep notice days for probation and after confirmation in the work terms policy, with per-grade overrides for senior roles.
- Complete the 8-item exit checklist and choose the exit reason from the 20 structured reasons during offboarding.
- Add leave encashment, notice recovery and any clawback as payroll inputs for the leaver.
- Pay the settlement through an off-cycle payroll run within two working days of the exit.
- Issue relieving and experience letters from the HR letter library and keep copies in the employee's documents.
Read more about employee records and exits in ZeniaHR.
Roles this applies to
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What is the notice period in IT companies?
It is set by the appointment letter and company policy. In IT it is often 60 or 90 days after confirmation, with a shorter period during probation, and senior roles sometimes carry longer notice. In ZeniaHR, notice days are set in the work terms policy with per-grade overrides, and recording a resignation fills in the last working day automatically.
Can an IT employee buy out the notice period?
Yes, if the appointment letter or company policy allows it. The employee pays, or has recovered from the settlement, the salary for the days not served, calculated on the basis the letter defines, often gross pay. The company can also waive the shortfall once knowledge transfer is complete. Put the decision in writing before the last working day.
When should full and final settlement be paid to an IT employee?
Wages due to an employee who leaves must be paid within two working days of leaving. Prepare the settlement during the notice period: salary for days worked, leave encashment, bonus due, notice recovery and gratuity after five years of continuous service. The full and final settlement guide walks through each item in order.