3.1 Employee Separation. Cessation of employment is a common event and can take place for various reasons. Hence, it is necessary to ensure timely and accurate handling of the process of removing employees from the company pay roll which is consistent with positive employee relations practices. This policy sets out the conditions and procedures relating to separation of employment from _________. It aims to ensure that _________ is in line with good employment practice and complies with the statutory requirements.
3.2 Categories of Separation.
3.2.2 Termination. The Company terminates the employment with/without assigning any reason but by giving 2‐3 months advance notice as stipulated in Contract Agreement/ Appointment Letter or pay in lieu.
3.2.3 Discharge. Termination of service of the employee by the Company for reasons of physical or mental incapacity or continued ill health of the employee or such other similar reasons not amounting to misconduct.
3.2.4 Dismissal. Termination/separation in which the employee is removed from the pay roll on grounds of misconduct.
3.2.5 Deceased. The death of an employee while in active employment.
3.2.6 Redundancy. Reduction in manpower due to changing business needs or when work is no longer available.
3.3 Resignation. It is the policy of the Company to make a reasonable effort to retain good employees who appear to be resigning due to reasons which might be corrected. When an employee announces his/her intension to resign, immediate steps should be taken to determine the real causes, and where possible and desirable, steps to be taken in order to retain the employees.
3.3.1 Notice Period. A contract of employment may be terminated by either party giving notice in writing or payment in lieu as specified in the contract agreement/appointment letter. Unless otherwise specified in the contract of employment/ appointment letter, the notice or payment in lieu to be given by either party for termination of employment is as follows:
3.3.2 The length of notice to be given by either party in the event of an extended probationary period shall be the same as during probation.
3.3.3 Employees are not allowed to use outstanding compensation leave or annual leave in lieu of termination notice. Similarly, maternity leave cannot be served as notice for termination of employment.
3.3.4 If an employee has applied for annual leave prior to submission of his resignation and the approved leave falls within the notice period, he must obtain re‐approval from the HR Department.
3.3.6 Return of Company Property.
3.3.7 Exit Interview. The Human Resources Department will normally conduct an exit interview with the resigning employee to obtain a better understanding of his needs and to solicit his feedback so as to improve the overall working environment and conditions in _________. (Exit interview format is given at Annex N).
3.3.8. Final Payment. The final payment including basic salary, job related payments or reimbursements, payment in lieu of accrued annual leave and money due to the employee, if any, will be paid to the resigned employee by cheque or cash within 30 (thirty) days from his effective date of resignation.
3.3.9 Calculation of Salaries.
Monthly basic salary
X No. of calendar day(s) in lieu of notice No. of calendar days in the month
Monthly basic salary
X No. of days employed in the month No. of calendar days in the month
3.3.10 Withdrawal of Resignation. Withdrawal of resignation must be made in writing by employees, recommended by their Heads of Department and approved by HR Department.
3.4 Termination. It is the policy of the Company to make reasonable effort to retain good employees. Personnel turnover is expensive for a number of obvious reasons. Before termination all facts must be carefully reviewed. Because of special circumstances performance of an employee may not be satisfactory. This may be averted by arranging a transfer of the employee where his/her output may improve and thus prove mutually beneficial to both employee and the Company.
3.5. Dismissal. Dismissal is a severe act of punishment and before such action is taken, strict observance of rules and disciplinary procedure as laid down under policy on Disciplinary Procedure (Section 9) as well as Labour Act 2006 (for non‐management staff) is necessary. The action is taken where the employee has committed misconduct.
3.5.1. While the law recognizes an employer's right to terminate the employment of an employee with legitimate reasons, Heads of Departments must cautiously exercise the right in order to minimize the adverse impact on other employees/their departments or _________.
3.6. Discharge. Where an employee in the opinion of the Management is incapable or has ceased to be capable by reasons of infirmity of mind or body or continuous ill‐health or for such other reasons not amounting to misconduct, the competent authority may discharge him / her on medical ground subject to medical examination to that effect by a civil surgeon/ registered medical practitioner. To discharge an employee on such ground his past medical records and civil surgeon/registered medical practitioner’s certificate should be used as supporting evidence. If an employee who has not completed one year of continuous service will not be entitled for any benefits.
Retrenchment form Service. An employee may be retrenched on ground of redundancy consequent upon the abolition of the concerned post after giving him/her compensation equivalent to thirty days basic pay for every completed year and part thereof in excess of six months or gratuity under the conditions of entitlement to the payment of gratuity whichever is higher.