Exit & Termination Policy & Process

This policy sets out guidelines on employees separation from the organisation. The separation can be due to any of the following reasons:

  • Exit due to Resignation
  • Termination on account of
    1. Poor Performance
    2. Ethical or Moral Breaches/Disciplinary Issues
  • Termination due to Business Exigencies
  • Termination due to Medical Reasons

Exit Policy

Exit due to Resignation
An employee shall have the right to resign from the company by giving written notice & subsequently serving the applicable Notice Period.

Please  note:

– The company does not provide waivers to the Notice Period except when force majeure circumstances make serving of such Notice Period impossible or too difficult 
– The company does not allow the use of earned & casual leaves during the Notice Period 
– Failure to serve the applicable Notice Period would be m considered a violation of employment terms 
– Employee shall be relieved from the company & Relieving Letter from the company will be subject to complete & formal handover of all assignments, proper transitioning & knowledge transfer, submission of company assets & documents, successful completion of all on-going activities and settlement of all
outstanding amount towards notice period recovery/asset not returned/asset damage/advance clearance (if any) etc

Termination due to Poor Performance 

The company shall have the right to terminate the employee by providing the applicable Notice Period or Compensation in lieu of the Notice Period if the employee is unable to perform his/her duties at the expected level of performance. 
Termination due to Ethical/Moral Breaches or Disciplinary issues  
The company has a Code of Conduct to be followed by its employees. Any violation of the Code of Conduct by any employee shall be considered as misconduct.  
The company shall have the right to immediately terminate the employee without Notice Period or liability for compensation /salary or damages upon any violation of the Code of Conduct including but not limited to the following:

  1. If the employee is convicted of any criminal offense other than an offense which is reasonable for waiver in the opinion of the company.
  2. If the employee discloses any information, data, trade secrets which are not to be disclosed as mentioned in confidentiality clause of their appointment letter.
  3. If the employee makes any remarks of indecent or threatening nature or spreads/participates in rumors which make the working environment unhealthy for a co-worker or disrupts the normal work of the company. 
  4. If the employee harasses or discriminate against any co worker on the grounds of gender, religion, caste, sexual orientation or other such matters.
  5. If the employee demonstrates insolence, impertinence, rudeness or misbehavior towards any colleague, client, visitor or public servant inside the work premises or outside where such act relates to employment.
  6. If the employee deliberately makes a false complaint or report against any employee.
  7. Carrying or being in possession of any weapon or narcotics or other prohibited substances inside the work premises
  8. If the employee is found under the influence of alcohol or narcotic substances while at duty.
  9. If the employee is found guilty of stealing, misusing or misappropriating company’s property or funds including submitting fake bills for reimbursement claim.
  10. If the employee undertakes a financial transaction on behalf of the company or its clients for which they have not been explicitly authorized in writing.
  11. Misconduct or wilful neglect in the discharge of duties. Habitual absence from work without leave, habitual late attendance or leaving of work before the scheduled time, habitual inefficiency, carelessness and defective work causing quality or quantity of work to suffer. 
  12. If the employee fails to obey authorized and reasonable instructions of supervisor or company’s authorized representative or fails to follow norms/rules as per the company’s policies communicated to them on joining or any changes/amendments in rules given in writing from time to time. 
  13. If the employee does any act or omission by virtue of which the company suffers a reasonably avoidable loss in the business.
  14. If the employee remains absent from duty for more than 5 days without any intimation or approved leave.
  15. If the employee strikes work or incites others to strike work in contravention of the provisions of any law. The term “striking work” includes work–to-rule, sit-down and/or stay-in strike, pen-down strike and sympathetic strike.
  16. If the employee is part of an activity or makes a statement to any person or in public which is prejudicial to the interest of the company.

Termination due to Business Exigencies  
The company shall have the right to initiate terminate the employee by providing Notice Period or equivalent
compensation in lieu thereof, if: 

  1. The post on which the employee was designated no longer exists in the company due to business exigencies 
  2. The company decides for any other reason that the employee’s employment with the company is no longer required 
  3. If a force majeure event renders you unable to perform your services, or renders the company unable to continue to employ you
    Termination due to Medical Reasons 
    The company shall have the right to initiate terminate the employee by providing Notice Period or equivalent compensation in lieu thereof, if the employee is declared unfit on medical grounds to continue his/her services with the organization for the foreseeable future.
    Obligations of Employee upon Exit/Termination 
    The Employee shall hand over all the assets, furniture, fixtures, documents, immovable properties etc. of the company in good shape and condition to the authorized person of the company on or before their last date at the company. Failing in compliance of the above, the value of the non-returned materials shall be adjusted against any dues outstanding towards the employee and the employee will be liable to pay back to company any amount unrecoverable through outstanding dues.  
    If employee have access to any information belonging to the company or its clients, vendors and partners, they must return all copies of such information and delete and destroy all copies that cannot be returned and should cease from accessing any facilities or software systems that may provide such access in the future.
    Exit Process
    Process for exit due to Resignation
    In the event of employee’s voluntary resignation, the below process must be followed: 

– Resignation must be initiated by the employee after informing the Reporting Head
– Resignation must be approved by the Reporting Head of the employee for the exit process to be initiated by HR.
Process for termination due to Poor Performance 

If an employee’s performance falls below the expected level of performance objectives, Reporting Head should have a counselling discussion with the employee on the below & document the meeting points with the employee & HR:

  1. Identify which performance objectives are unsatisfactory & make employee understand the measurement of satisfactory performance. 
  2. Coach the employee with possible actions to improve the performance. The support can be with any training, coaching, mentoring, etc.

If improvement is evident, support & recognize the achievement & provide positive feedback. If no improvement during the evaluation, the employee may be placed on PIP with information to employee & HR.
Note:  The PIP should not be used for issues such as employee misconduct, poor or inappropriate behaviour or incompetence. Misconduct or behaviour should be handled through the Termination due to Ethical/Moral Breaches or Disciplinary issues process

Performance Improvement Plan (PIP) 
After counselling, if the performance levels have not improved, within the evaluation time frame, the employee may be placed on PIP, with clear information about the time frame & expected outcomes. The PIP period in such cases shall count towards the Notice Period.

Actions post PIP

  1. If performance improvement is achieved, acknowledgement shall be given to employee in writing with communication of further support & expectation in retaining the performance at the expected level. 
  2. If the employee fails to meet the performance objectives outlined in the plan or fails to maintain the expected level of satisfactory performance then: 
    – A written extension of the Performance Improvement Plan may be provided. 
    – The employee may be terminated on the basis of continued poor performance. If the PIP period was greater than or equal to the Notice Period then the termination will be with immediate effect. If the PIP period was less than the Notice Period then the balance Notice Period or compensation in lieu thereof will be provided.

Process for termination due to Ethical/Moral Breaches or Disciplinary issues   
If at any time an Ethical/Moral Breach or Indiscipline Charge is reported against an employee, the following process will be followed by HR. 
Show cause notice – HR shall serve a show cause notice by mail mentioning all the details of the alleged charges. The employee shall be required to reply to the said show cause notice in writing within the time limit provided in notice.
Failure to reply to the notice – If the employee fails to submit a written explanation to the show cause notice within the provided time frame, the management will assume that the alleged charges have been accepted by the employee and will proceed with action accordingly.

Inquiry upon receiving/not receiving reply to the notice – HR shall conduct an independent inquiry considering the facts available and the submissions of the employee. HR may request any additional evidence if required. The decision of HR at the conclusion of the inquiry will be considered final & binding upon all parties.
Action upon completion of inquiry  
Upon completion of the inquiry process, the management shall take into account the gravity of the indiscipline/misconduct, previous record, if any, of the employee and any other extenuating circumstances that may exist.

If the employee is found guilty of indiscipline, any of the following actions can be taken:

  1. Warning letter issued
  2. Increment withhold
  3. Demotion to junior grade and band
  4. Suspend without pay for period not exceeding four days at a time
  5. Fine in Cash or adjustments against dues
  6. Termination with immediate effect without any notice period or compensation in lieu of notice period

Process for termination due to Business Exigencies 
In the event of employee’s termination due to business exigencies, the Reporting Head must inform the HR of their intent of termination of employee along with approval of Vertical Head. HR will initiate termination process with Notice Period/compensation in lieu thereof.
Process for termination due to Medical Reasons 
In the event of employee’s termination due to medical reasons, the Reporting Head must inform the HR of their intent of termination of employee, provide the available medical proofs and attach the approval of Vertical Head. HR will initiate termination process with Notice Period/compensation in lieu thereof.