Separation Policy

Objective

The policy guides the employee regarding the full & final procedure, proceedings & essential documentation required for full & final while ceasing his/her employment. Separation occurs when an employee on payroll of the company leaves the services of the  company for following reasons:

Resignation

When an employee on the payroll of the company willingly leaves the services of the company for any personal/professional/other reasons. It is voluntary termination of association with the organization.

Termination

Here management decides to severe the contract of services of the employee for following reasons:

  • Violation of code of conduct, financial irregularities, moral turpitude, etc. as defined in subsequent section of this policy.
  • Performance is not up to the expectation of the management
  • The role of the employee ceases while organization restructuring.
 Voluntary Abandonment of Service

It occurs when an employee absents himself from the job without communicating with the supervisor and/ or fails to come to work within 10 days after an authorized leave of absence.

Retirement

When an employee attains the age of retirement i.e. 60 years as per provisions in the standing orders.

Death

Death of an employee while on the payroll of the company.

 Notice Period (30 days):  
  •  The confirmed employee has to serve notice period of 30 days before separation from the organization except for the employees from departments; Sales, PD, R&D and Marketing
  • The old employees in Sales, PD, R&D and Marketing who are covered under the 30 days notice period agreement shall continue to be covered in the 30 days notice period clause only.
  • The employee in probation (6 months) or training period (1 year) has to serve notice period of 15 days except for the employees from departments; Sales, PD, R&D and Marketing.
  • This notice period shall be effective from the date of his/ her resignation filed or submitted to his/ her reporting manager in ESS. 
  • Leave cannot be applied during notice period, any absence will lead to salary deduction on Gross amount.
Notice period (90 days)
  • Notice period of 90 days for confirmed employee is applicable in R&D, Sales, PD and Marketing departments.
  • The employee in probation (6 months) or training period (1 year) has to serve notice period of 30 days.
  • This Notice period shall be effective from the date of his/ her resignation filed or submitted to his/ her reporting manager in ESS. 
  • Leave cannot be applied during notice period, any absence will lead to salary deduction on Gross amount.
  • The employees of R&D/Sales/PD/Marketing who joined earlier to the notice period change from 30 to 90 days, shall still be covered under 30 days notice period (post confirmation) only.
Separation Process in case of Resignation
  • Employee needs to submit resignation online through separation module in ESS indicating the last working date in the organization.
  • The employee from Sales department shall complete all the vendor level clearance Formalities 10-15 days prior to his/ her last working date & produce no-dues certificate from his/her departmental head / Reporting Manager to HR.
  • The employee from Production department shall complete all the organiser level clearance formalities 10-15 days prior to his/ her last working date & produce no-dues certificate from his/her departmental head / Reporting Manager to HR.
  • Employee has to submit all the company asset(Like Laptops, Mobiles, camera, Pen-drive etc.) / necessary Documents to his/ her reliever or reporting manager as per instructions or guided by his/her reporting Manager.
  • There will be other recoveries as applicable;
    • ID card non submission as per ID Card Policy
    • Recovery of Shifting Allowance as per Transfer Policy
    • Recovery of Gadgets as per Gadget Policy
    • Recovery of notice period amount for period not served on Gross Salary basis
    • Recovery towards any service agreement dues as applicable as per unfinished service bond
    • Recovery towards any overseas agreement dues, if applicable.
    • Any other dues recoverable as per the NOCs received.
    • Recovery of Transfer relocation allowance in case of exit before one year from the date of transfer.
  • HR will collect the no dues from all the respective concerned departments. Once the F&F processing is completed HR shall compile the F&F statement.
  • The F&F statement shall be forwarded to the employee and HOD for verification, the accepted signed copy of which shall be forwarded to HR for further processing.
  • The Accounts team shall verify the computation within the next 3 working days & communicate to HR. Account department shall make the cheque in event of payout within the next 3 working days and deposit the same in employees’ bank account.
  • After receiving this intimation or cheque, HR shall inform the employee for the same & take the following actions:
    • Payout Cases: Provide the ex-employee his copy of F&F Settlement Calculation Sheet & Copy of Accounts statement along with the intimation of Bank transfer of the F&F Settlement Amount.
    •  Recovery Cases: The resigned employees should settle their accounts in form of Demand Draft in favour of “VNR Seeds Pvt. Ltd”, payable at Raipur, within 15 days of receipt of this intimation regarding F & F dues.
  • Once the same is received, HR shall issue the Relieving Letter, Experience   certificate, and a copy of F&F Settlement Calculation Sheet to the separated employee to his e-mail address and by Registered post to his address as per HR records.   
  • In Case that the separated employee does not send the F & F recovery amount by Demand Draft within the stipulated time, HR Representative shall initiate the process of recovery of F & F dues through legal proceedings and may also connect with the separated employee’s HR for assistance.
Separation Process in case of termination

Termination occurs when Management terminates the services of the employee for any of the major misconduct by employee.

Non Performance
  • This may occur when an employee has consistently performed below expectations, in spite of being given clear feedback that improvement was needed.
  •  When terminating for Consistent non – Performance, The reporting manger /Superior shall maintain accurate records of intimation of poor performance of the employee &  produce the records to the HR in writing, time & other support provided (3 months PIP Plan)to correct deficiencies, yet no improvement in performance of employee found as established by the records in the employees’ personal file, it would warrant termination of services of the employees.
Separation Process in case of Voluntary Abandonment of Service
  • Voluntary Abandonment of service implies a situation where in an employee has not reported on duty for more than 10 continuous days without prior intimation or approval of Department Head.
  • The Head of the Department shall intimate Manager HR on the absence of employee beyond authorized leave and absence without permission.
  • HR Representative shall contact the employee by telephone/e-mail, asking the employee to report on duty immediately (within 24 hours).
  • Two days after the communication is sent, HR shall send a Voluntary Abandonment of Service Notice with acknowledgement due; to the employee vide Registered AD Post on the last known address of employee as maintained or recorded in his/ her Personal file. In case of no response 2 reminder notices is sent to the employee. In event no contact is established with the employee/immediate family/references, HR shall Process for Termination of the employee on account of “Job Abandonment”.
  • HR Department shall send the Termination Letter, Experience Certificate, and a copy of F&F Settlement Calculation Sheet to the ex – employee on his mailing address as confirmed by him or as per the latest updates in his/ her personal file Records & initiate the process for recovery where amount is receivable if any.
  • No payment shall be credited if any amount is payable, till the employee makes a contact with the organisation. Payment shall be released with the approval of HR.
Separation Process in case of Superannuation:
  • An employee on attaining the age of 60 years shall superannuate from the services of the organization.
  • If the employee is superannuated, HR shall intimate the employee, conduct Exit Interview of the employee and send the feedback to the Management. 
  • HR Department shall process all the Retiral Benefits forms prior to the Date of retirement.
Separation Process in case of Death of an Employee while in Employment
  • In the unfortunate event of death of an employee on roll of VNR, HR shall intimate the death of the employee to the Management/Entity Head for such unfortunate incident.
  • In case the cause of the death of the employee is due to Accident, HR shall initiate the process of obtaining necessary documents & to facilitate insurance claims for Hospitalization & Medical Expenses Insurance Claim Process etc.
  • Notice Period would be waived off & other recoverable dues shall be proposed appropriately by the HR with the approval of Management.
  • HR shall complete the F&F Settlement process in co-ordination with the Accounts Team. HR shall process and facilitate the Retiral Benefits procedures, clearances of Insurance, Gratuity etc on behalf of the deceased employee & hand over the proceeds to the deceased employee’s legal heir / nominee as per records.
  • The legal heir should indemnify the company by way of Indemnity Bond as required by Legal dept in order to obtain settlement dues.
  • HR shall give a copy of F&F Settlement Calculation Sheet to the nominee / legal heir as per Records & credit the payment in case of Payout.
  • In case there are Company assets in the deceased employee’s name, HR shall appropriately and sensitively handle the situation and ensure that the assets are recovered.
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