Exit management for NGOs and trusts

Project closure and fixed-term contracts

When a project is due to close, tell project staff three to six months ahead whether their post will end, be extended or move to another grant. A fixed-term contract ends on its date. Fixed-term workers hold full employee status, so they get gratuity pro rata without the five-year minimum, along with wages and any leave settlement your policy allows. Where you can, offer staff roles on new projects before advertising outside, since they already know the communities and your systems.

When funding stops for permanent staff

Permanent staff whose posts lose funding are a different case. 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. Look first at moving the person to another project or to core funding, and take advice before retrenching, since the process has other conditions too. See the notice and termination rules.

Worked example: gratuity at project end

Farida has been a block coordinator on a fixed-term contract for 4 completed years when the project closes, and her last drawn basic plus DA is ₹20,800. As a fixed-term employee she gets gratuity pro rata without the five-year minimum: (₹20,800 / 26) x 15 x 4 = ₹48,000. Her final month's salary and any leave encashment the policy allows are paid with it, and wages due must be paid within two working days of the contract ending.

Handover of data, assets and advances

Field staff hold things the organization must get back: beneficiary registers and survey data on tablets, project files, the tablet and phone, a motorcycle where one was issued, and unspent field advances. Beneficiary data must be handed over and deleted from personal devices, in line with the consent people gave. Accounts settles advances against receipts. The block coordinator signs the handover before HR processes clearance.

• Beneficiary registers and survey data
• Tablets, phones and vehicles
• Unspent field advances with receipts
• Access to data apps and shared drives removed

How to set it up in ZeniaHR

1. Keep fixed-term end dates on each employee's documents, and review contracts ending in the next 60 days with programme managers every month.
2. Resignations are recorded on the employee record, which fixes the last working day and puts the person on notice.
3. Run offboarding with the exit reason that fits from the 20 structured reasons, and complete the 8-item exit checklist.
4. Add leave encashment and advance recovery as inputs for the final month in Direct Payroll, where paid days are bounded by the exit date.
5. Use an off-cycle run for the final settlement so it is paid within two working days, and cross-check gratuity with the gratuity and settlement reports.
6. Keep leavers in the previous employees list, so good field staff can be contacted when the next project is sanctioned.

Read more about employee records and exits in ZeniaHR.

Roles this applies to

Frequently asked questions