Hi,
HR is the department that will be acting as the intermediary between the outgoing employee and the Finance Department. Generally, all finance departments will require all the necessary documentation, evidence, and approvals from the top management.
It is actually a mistake on the part of the top management to think along these lines: "WHEN WE SPEND LOTS OF MONEY TO ATTRACT AN EMPLOYEE, WHY ARE WE MAKING THEM SO UNHAPPY WHEN THEY LEAVE THE COMPANY."
Only the HR department is concerned about the above issue, not any other department. As an HR professional, we need to handle this situation very diplomatically as there is no other option. This is because Finance will say that we do not have proper approval, and therefore, we cannot communicate the same to the outgoing employee. It is a very sensitive issue.
Regards,
Srini
From India, Hyderabad
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22HR is the department that will be acting as the intermediary between the outgoing employee and the Finance Department. Generally, all finance departments will require all the necessary documentation, evidence, and approvals from the top management.
It is actually a mistake on the part of the top management to think along these lines: "WHEN WE SPEND LOTS OF MONEY TO ATTRACT AN EMPLOYEE, WHY ARE WE MAKING THEM SO UNHAPPY WHEN THEY LEAVE THE COMPANY."
Only the HR department is concerned about the above issue, not any other department. As an HR professional, we need to handle this situation very diplomatically as there is no other option. This is because Finance will say that we do not have proper approval, and therefore, we cannot communicate the same to the outgoing employee. It is a very sensitive issue.
Regards,
Srini
From India, Hyderabad
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Dear,
He is so lucky at least he/she gets a salary every month. If you take a leading company like SUBHIKSHA, a retail chain group, even they won't give salaries and it is too much to expect F & F. Here we cannot say when we will give the salary. This company started 12 to 15 years back but is not streamlined. God only knows. One more big issue is when a candidate is selected, the company will offer a beautiful CTC, but the take-home salary will be very less. For example, our Manager A/c CTC is 5 lakhs, but his take-home is 17,548. Bonuses, LTA, Variable Pay, etc., are more. He has never received anything since 2 years. Recently, he left for another company. He faced a lot of problems while looking for a change. He was shortlisted in good companies, but after they saw his offer letter, every company doubted if it was a false experience. What do we have to say?
From India, Secunderabad
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He is so lucky at least he/she gets a salary every month. If you take a leading company like SUBHIKSHA, a retail chain group, even they won't give salaries and it is too much to expect F & F. Here we cannot say when we will give the salary. This company started 12 to 15 years back but is not streamlined. God only knows. One more big issue is when a candidate is selected, the company will offer a beautiful CTC, but the take-home salary will be very less. For example, our Manager A/c CTC is 5 lakhs, but his take-home is 17,548. Bonuses, LTA, Variable Pay, etc., are more. He has never received anything since 2 years. Recently, he left for another company. He faced a lot of problems while looking for a change. He was shortlisted in good companies, but after they saw his offer letter, every company doubted if it was a false experience. What do we have to say?
From India, Secunderabad
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Hi All,
I agree with Gopi fully. It's the responsibility of HR to get the F&F for the resigned employees even though finance will have to give. When a resigned employee has a bad experience with the company, they will not speak well about the company to others, potentially causing hesitation for their friends or others who are considering joining the company. This could lead to the company losing good candidates in the future.
Even if management is not happy or interested in the resigned employee, it is the duty of HR to explain to management the impacts, as HR serves as a bridge between management and the employees.
Please let me know if you have different views on this.
Thanks,
Priya
From Qatar
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I agree with Gopi fully. It's the responsibility of HR to get the F&F for the resigned employees even though finance will have to give. When a resigned employee has a bad experience with the company, they will not speak well about the company to others, potentially causing hesitation for their friends or others who are considering joining the company. This could lead to the company losing good candidates in the future.
Even if management is not happy or interested in the resigned employee, it is the duty of HR to explain to management the impacts, as HR serves as a bridge between management and the employees.
Please let me know if you have different views on this.
Thanks,
Priya
From Qatar
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If the employee resigns from the services of a company, we have to settle all the amounts that are eligible for him. We have to coordinate with the accounts department or finance department to settle their amount. It is the primary job for HR personnel. The employees resigned from the services due to various reasons. But remember the services they offered to the company. At least we will try to make them happy after their resignation.
MANOKAVIN
From India, Coimbatore
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MANOKAVIN
From India, Coimbatore
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Hi Friend,
I agree with your views, but you know every organization has the same policy. Sometimes HR operations are also involved because the employee who quits cannot directly talk to the CEO or CMD. They may have to visit multiple times, maybe 5 to 8 times. I am familiar with this process as well.
In fact, we...
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I agree with your views, but you know every organization has the same policy. Sometimes HR operations are also involved because the employee who quits cannot directly talk to the CEO or CMD. They may have to visit multiple times, maybe 5 to 8 times. I am familiar with this process as well.
In fact, we...
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Hi Fren,
I agree with your views, but you know each and every organization has the same policy. Yes, sometimes HR ops also get involved because the employee who quits cannot talk directly to the CEO or CMD. So, he has to visit almost 5-8 times. I know this process as well.
In fact, we never ask for the leaving policy. Just have the interview, qualify, and they'll give you an appointment letter, etc. Sign it and join the organization.
I feel that every company should produce the leaving policy separately, and even employees should ask about the policy, etc.
Regards,
Dilip
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I agree with your views, but you know each and every organization has the same policy. Yes, sometimes HR ops also get involved because the employee who quits cannot talk directly to the CEO or CMD. So, he has to visit almost 5-8 times. I know this process as well.
In fact, we never ask for the leaving policy. Just have the interview, qualify, and they'll give you an appointment letter, etc. Sign it and join the organization.
I feel that every company should produce the leaving policy separately, and even employees should ask about the policy, etc.
Regards,
Dilip
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Dear Ravi,
Hi, I was going through this session, it seems you had a bad experience with HR before, but it doesn't always happen. As a Senior Executive HR taking care of full and final and employee separation formalities, we in HR understand the importance. Whenever an employee leaves, they expect their HR clearance formalities to be done smoothly. Delays can occur due to various reasons:
1) If the person has not paid the notice period, and the full and final settlement comes out negative, we wait for the gratuity amount to come if the employee has completed five years or more.
2) Sometimes they do not submit Medical LTA bills on time. We follow up regularly even after the employee has left, asking for their bills. Even if we submit the full and final statement in accounts, there are certain obligations that need proper supporting documents to process further.
3) At times, we even deposit their cheques in their personal accounts.
4) Delays can also occur from both IT and the employees themselves when they do not provide the supporting documents for calculating their IT at the time of leaving. Providing relevant documents could help save on their tax amount.
There are many reasons for payment delays. As HR professionals, we should be sensitive to the fact that when someone leaves the organization, it should be on a positive note, and we should try to smoothen the process as quickly as possible.
Dear Friends,
I completely agree with Lalita. HR never intentionally delays the full and final settlement of anyone who has left the organization. There are many unavoidable reasons for delays, as mentioned by Lalita. I would like to add to the discussion:
In my company, we have employee-friendly policies in place. One of the separation policies is that the full and final working is shown to the resigning employee first, and after their consent, it is processed. Recently, an employee resigned 1 1/2 months ago and, as per the full and final working, has to repay around Rs. 2.5 lakhs to the company due to a loan availed from the company. We sent him the full and final working the day after his resignation, but he is deliberately delaying signing it and the payment. He is engaging in unnecessary correspondence and accusing the company of not settling his final dues. Regrettably, we may have to resort to legal action.
There are multiple factors contributing to delays in full and final settlements, and HR should not be solely blamed for such delays.
Best Regards,
DS
From Singapore, Singapore
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Hi, I was going through this session, it seems you had a bad experience with HR before, but it doesn't always happen. As a Senior Executive HR taking care of full and final and employee separation formalities, we in HR understand the importance. Whenever an employee leaves, they expect their HR clearance formalities to be done smoothly. Delays can occur due to various reasons:
1) If the person has not paid the notice period, and the full and final settlement comes out negative, we wait for the gratuity amount to come if the employee has completed five years or more.
2) Sometimes they do not submit Medical LTA bills on time. We follow up regularly even after the employee has left, asking for their bills. Even if we submit the full and final statement in accounts, there are certain obligations that need proper supporting documents to process further.
3) At times, we even deposit their cheques in their personal accounts.
4) Delays can also occur from both IT and the employees themselves when they do not provide the supporting documents for calculating their IT at the time of leaving. Providing relevant documents could help save on their tax amount.
There are many reasons for payment delays. As HR professionals, we should be sensitive to the fact that when someone leaves the organization, it should be on a positive note, and we should try to smoothen the process as quickly as possible.
Dear Friends,
I completely agree with Lalita. HR never intentionally delays the full and final settlement of anyone who has left the organization. There are many unavoidable reasons for delays, as mentioned by Lalita. I would like to add to the discussion:
In my company, we have employee-friendly policies in place. One of the separation policies is that the full and final working is shown to the resigning employee first, and after their consent, it is processed. Recently, an employee resigned 1 1/2 months ago and, as per the full and final working, has to repay around Rs. 2.5 lakhs to the company due to a loan availed from the company. We sent him the full and final working the day after his resignation, but he is deliberately delaying signing it and the payment. He is engaging in unnecessary correspondence and accusing the company of not settling his final dues. Regrettably, we may have to resort to legal action.
There are multiple factors contributing to delays in full and final settlements, and HR should not be solely blamed for such delays.
Best Regards,
DS
From Singapore, Singapore
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Hi all,
It all depends on how your managers define the ways for a smooth exit of the employee. Generally, managers try to delay the process with some reason in which HR could not do anything.
Still, HR is considered a support function and will continue to provide support to business people. Can you tell me a company where HR makes decisions independently? Somewhere they need to get approval from the business.
Thanks,
Manish
Recruitment
EDS India
From United States, Buffalo
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It all depends on how your managers define the ways for a smooth exit of the employee. Generally, managers try to delay the process with some reason in which HR could not do anything.
Still, HR is considered a support function and will continue to provide support to business people. Can you tell me a company where HR makes decisions independently? Somewhere they need to get approval from the business.
Thanks,
Manish
Recruitment
EDS India
From United States, Buffalo
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I have faced this issue as well... it is extremely demotivating and provokes employees to leave without a notice period
From India, Mumbai
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From India, Mumbai
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Well said. This is the problem which we also face in our company. All the companies try to adopt different measures to hire and retain the best talent, but they forget that if the employees will not have a happy exit, the employment cycle will break, and the companies will not get the best talent.
In my opinion, word-of-mouth publicity is the best tool in services. Keeping this in mind, if the companies will have good exit policies, this will surely help in creating a good image of the company.
Regards,
Shweta
From India, Delhi
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In my opinion, word-of-mouth publicity is the best tool in services. Keeping this in mind, if the companies will have good exit policies, this will surely help in creating a good image of the company.
Regards,
Shweta
From India, Delhi
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