Exit management for manufacturing plants

Notice and the last working day

Standing orders or appointment letters usually set notice at 15 days to a month for workers and longer for staff. Record the resignation the day it arrives, fix the last working day and tell the supervisor so the roster can be adjusted.

Workers who simply stop coming, often after a festival trip home, are a separate case. Follow your standing orders on unauthorised absence, send a written notice to the last known address, and close the record only after the period set there.

Clearance on the shop floor

Each department signs its own part of the clearance: the tool crib, stores, security, the canteen, accounts and the time office. Start the checklist on the day notice is recorded, not on the last day. Missing items are recovered only as your deduction rules allow, never by holding back the whole settlement.

• Tools, gauges and measuring instruments returned to the tool crib
• Safety shoes, uniform and locker key
• ID card and gate pass
• Canteen dues and salary advance balance
• Plant colony room vacated, where one was given
• Pending overtime and leave approvals closed

Full and final settlement

The settlement adds up wages for days worked, encashment of unused earned leave, pending overtime, bonus due, and gratuity where the worker has five years of continuous service. Gratuity is 15 days' wages for each completed year on the last drawn wages. Using the common 26-day divisor, a fitter with 8 completed years and last drawn wages of ₹26,000 gets ₹26,000 x 15 / 26 x 8, which is ₹1,20,000. Check figures with the gratuity calculator before release.

Retrenchment and rehiring

When a line closes or a customer programme ends, retrenching a worker with at least one year of continuous service needs one month's written notice with reasons, or wages in lieu, and compensation of 15 days' average pay for each completed year. Plan it with legal advice and read the notice and termination rules. On the brighter side, keep a list of good operators who left on good terms. A trained worker who comes back after a year away is quicker to deploy than any fresh hire.

How to set it up in ZeniaHR

1. Record the resignation in Employees to set the last working day and move the worker to on notice.
2. In offboarding, pick one of the 20 structured exit reasons and complete the 8-item exit checklist with each department.
3. Enter leave encashment and advance recovery as payroll inputs; approved overtime for the month reaches payroll as an earning.
4. Run an off-cycle payroll for the leaver, with paid days bounded by the exit date, so dues are paid within two working days.
5. Use the gratuity and settlement reports to check gratuity for workers with five or more years of service.
6. Review exit reasons by department every quarter and keep your own rehire list of operators who left on good terms.

Read more about employee records and exits in ZeniaHR.

Roles this applies to

Frequently asked questions