Employee Clearance

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Employee clearance also known as FNF (full and final) happens when an employee resigns or is expelled or retires from the job. He has to take clearance from every department like finance, admin, HR, etc. about his paychecks given, gratuity EPF all cleared from the company’s side before he takes an exit. If he is using a company laptop or any other asset, he is required to give it back to the asset management team.

A government-certified clearance form is made to be filled by the existing employee wherein he agrees that he has received all his legal, financial, and non-financial dues by the company and has submitted all vital company belongings back to the company. Such clearances are vital for the employee and employer alike as if not done properly can cost both the parties legally or financially.

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To help you understand employee clearance end-to-end. We share in detail, the following-

  1. Employee Clearance Procedure 
  2. Employee Clearance Certificate
  3. Employee Clearance Checklist
  4. Employee Clearance Letter Sample 
  5. Employee Clearance in HROne 

Employee Clearance Procedure

Employee clearance procedure begins right after the acceptance of resignation from the senior employee reports to. It involves handing over tangible assets of the company back in the condition they were given and also the transfer of knowledge to their replacement. In case, the replacement is not found till the relieving date of the employee, the employee shares the documents and materials they own with the team or their department head.

Majorly, departments that are involved in the employee clearance procedure are the IT team, admin team, HR team for the clearance of IT assets like laptops, cafeteria, email forwarding, and more.

Once HR receives approval from all the stakeholders, the employee is issued a relieving letter and released from their services completely. 

Resignation> Employee clearance due form (IT, admin, HR teams)> Dues cleared> Relieved

Employee Clearance Certificate

The employee clearance certificate is the certification or declaration given to an employee at the time of separation. The separation includes the employee being transferred internally to the new department or leaving the company. Once the employee clearance form is completed, the employee is released from their services with this certificate, experience letter, and more. This helps them show their new organisation that they are not associated with their previous company in any way.

Employee Clearance Checklist

Clearance checklist has multiple components like communication, assets, knowledge, IT and access, documentation. Let’s see what each of these entail in context to the employee clearance checklist. 

Inform the manager about resignation-

  • Set a meeting with the employee
  • Inform team members
  • Inform relevant departments

Knowledge transfer-

  • A meeting scheduled with replacement 
  • Training the new employee
  • Sharing important contacts and resources

Recover assets-

  • Laptop
  • Access (Drive)
  • Keys

Update IT permissions and access-

  • Forward email
  • Close accounts
  • Employee ID card/ permissions

Change credentials wherever required Documentation-

  • Signed resignation letter
  • Share non-disclosure agreement

Mention the benefits that they can avail themselves later like PF

Full and final settlement including the documents like experience letter, employee clearance certificate

Note: All the things that an employee has to do out of the above-mentioned ones, can be mentioned in the employee clearance form as well to make the exit process smoother for employees.

Employee Clearance Letter Sample

Below is the employee exit clearance letter sample. You can write it your way or use this directly.

Authority Name
Job position

Company name and sign

Subject: Clearance letter 

Whomsoever it may concern,

(employee name) has worked for (mention service tenure) with (department name and company). He/ She has cleared all her dues during her notice period and has been relieved from his/her services in the (department, company name). He/ she has no obligations from (company name).

Best Regards,
Your name
Department name

Employee Clearance in HROne

Employee clearance is faster and better in HROne HR software in a myriad of ways. Some of them are-
1. No manual clearance needs to be done, every aspect in the process is auto-triggered once the resignation is accepted 

2. HRs need not do any follow-ups with any department as HROne inbox is there to remind the respective clearance task owners of their responsibility

3. The FnF of the employee exiting is also auto-credited and synced with the payroll system 

4. To ensure a better exit experience, the employee is also given a personalised interview to record feedback for team and company from them

5. Final settlement can be done in a single click as per the defined timeline.

Download here: Relieving Letter Template

Sukriti Saini

Sukriti Saini works as a content marketing strategist at HROne. She has done Bachelors in Journalism from Delhi University and carries several years of experience in content development. HR trends, Productivity, Performance and topics related to Employee Engagement garner most of her writing interest here. During leisure, she loves to write and talk about fashion, food & life.

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