Free HR resource · Offboarding
Employee Exit Checklist for India
A clean exit runs through six stages: resignation and notice, a documented handover, asset recovery and access revocation, an exit interview, the full and final settlement, and statutory exit with relieving documents. Work through the checklist below so every departure is fair, compliant and leaves the door open.
Resignation & notice
Acknowledge the resignation in writing and record the date
Confirm the notice period per the appointment letter, and the last working day
Agree any notice waiver, buy-out or recovery in writing
Communicate the exit to the team and stakeholders at the right time
Plan backfill or interim cover for the role
Handover & knowledge transfer
Prepare a documented handover of tasks and ongoing work
Reassign responsibilities, clients and pending approvals
Transfer files, documents, accounts and passwords
Hand over any project, vendor or client relationships
Confirm the handover is signed off by the reporting manager
Assets, access and settlement
This is where money and security meet. Recover what belongs to the company, close every access point, and settle the employee’s dues fairly and on time.
Asset recovery & access
Recover the laptop, ID card, access card and any company assets
Disable email, system, VPN and application access on the last day
Revoke building and facility access
Collect company credit cards, SIM cards and documents
Update the asset register and IT off-boarding record
Full & final settlement
Calculate unpaid salary, reimbursements and leave encashment
Add gratuity where five years of service is complete, and any bonus due
Deduct notice-period shortfall, advances and unreturned assets
Process final TDS and share the settlement statement
Aim to settle within 30–45 days of the last working day
Statutory & benefits exit
Mark the date of leaving in the EPF portal so the employee can withdraw or transfer
Stop ESIC contributions from the leaving date
Remove the employee and dependants from the group health insurance policy
Tell the employee when health cover ends so they avoid a gap
Issue Form 16 for the financial year at the usual time
Documents & closure
Issue the relieving and experience letters
Share the full and final settlement statement and payslip
Complete the exit interview and record feedback
Confirm all dues are cleared on both sides
Add the employee to the alumni network, where you have one
A good exit protects your brand
Close cover cleanly, and say when
A departing employee remembers how they were treated on the way out. Removing them from the health policy on the last day is correct — but telling them when cover ends, so they can line up their own or their next employer’s insurance, is what leaves a good impression. With Onsurity, adding and removing members is a simple endorsement, so your active headcount and premium always match reality. See the workflow in the managing your group health policy guide.
Frequently asked questions
What is included in an employee exit process?
A complete exit runs from the resignation and notice period, through a documented handover and knowledge transfer, recovery of company assets, revoking of system and building access, an exit interview, the full and final settlement of dues, statutory exit steps for PF and ESIC, and the issue of the relieving and experience letter. Handling all of these in order protects both the employer and the departing employee.
What is a full and final settlement?
Full and final settlement (FnF) is the closing account when an employee leaves — unpaid salary and reimbursements plus leave encashment, gratuity where due, and any bonus, minus recoveries such as notice-period shortfall, advances or unreturned assets. Many employers aim to settle within 30 to 45 days of the last working day. See the dedicated full and final settlement guide for the components and a worked example.
What happens to PF and ESIC when an employee leaves?
On exit you mark the date of leaving and the reason in the EPF portal so the employee can withdraw or transfer their Provident Fund using their UAN, and you stop ESIC contributions from the leaving date. The employee’s UAN stays with them for life, so a clean exit entry lets them transfer the balance to their next employer without trouble.
When should the relieving letter be issued?
The relieving letter is usually issued on or shortly after the last working day, once handover is complete and dues are cleared. It confirms the employee has been relieved of their duties, and is often issued alongside the experience letter. Prompt, clean documents protect your employer brand and help the person join their next role smoothly.
How does group health insurance end for a leaver?
A departing employee is removed from the group health policy through an endorsement, effective from their last working day or as your policy provides, and any dependants come off with them. It is good practice to tell the employee when cover ends so they can arrange their own or their new employer’s insurance and avoid a gap in protection.
General guidance, not legal advice. Confirm settlement timelines and statutory steps for your state and establishment type.
Benefits that flex as your team changes
Joiners and leavers shouldn’t mean paperwork headaches. With Onsurity, add or remove employees in minutes and only pay for who is actually covered — cashless group health, OPD and wellness on a monthly subscription. Get a quote and see the per-employee cost.
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