From resignation to settlement
- Resignation or HR-initiated exit. The employee resigns from self-service, or HR starts the exit. The notice period runs from the resignation date, and each leave type decides whether it can be taken during notice.
- Exit approval. The exit is approved through your workflow, and the last working day is fixed.
- Clearance. Each department — IT, admin, finance, the manager — clears its items on a checklist built from your templates, and HR is told when an item passes its deadline.
- Exit interview. HR records the interview, including the leaver's main reason for leaving.
- Settlement. Once clearance is complete, the settlement is calculated, submitted and approved.
- Payment. Finance pays it and records the payment date and reference. The F&F statement, relieving letter and experience letter can be generated for the leaver.
System access for a leaver ends automatically after the last working day, and HR is warned the day before. HR can delay it when someone needs access a little longer to hand over.
What the settlement calculates
| Line | How it is worked out |
|---|---|
| Salary for the final month | Days worked up to the last working day, after loss of pay |
| Leave encashment | Your company's encashment rule — the same pay base and divisor used while employed; gross pay divided by 30 if you have no rule. Encashments already approved but not yet paid are paid here too |
| Bonus and arrears | Bonuses due and arrears from a backdated revision |
| Overtime and rest-day pay | Paid only if your company has switched on overtime pay, with each day reviewed by an approver |
| Reimbursements | Approved one-off reimbursements still to be paid |
| Notice-period recovery or buyout | A shortfall in notice is recovered, or a notice buyout is recorded with who pays it |
| Asset and other recoveries | Unreturned assets and other amounts owed, plus any salary paid beyond the last working day |
| PF and ESI | Employee and employer contributions on the final wages |
| Professional tax | Always withheld on the final pay, using the rules of the state where the employee worked |
| TDS | Income tax on the settlement, taking the year's earlier pay and tax into account |
Gratuity: a reminder, not a payment line
Gratuity is paid by the company outside the full and final settlement, under the Payment of Gratuity Act. Verdeshell does not add it to the settlement total. Instead the settlement shows:
- Whether the leaver is eligible — five or more completed years of service, where a part-year over six months counts — or because HR marked them eligible earlier, for example on death or disablement.
- An estimate of the gratuity amount.
- The date it should be paid by — gratuity is due within 30 days of becoming payable.
Controls that stop a wrong payment
- The settlement cannot be calculated until clearance is complete.
- It is refused while a bonus declared for the leaver is still unpaid, so the bonus is either paid or cancelled first and not lost.
- Overtime days are decided by an approver before they are paid, and the approver confirms the total shown on screen.
- Submit and approve are separate steps, and a rejected settlement goes back with the reason.
Alumni register and exit analytics
Former employees move to an alumni register, where HR can note whether each person is eligible for rehire.
Exit analytics show exits by type and by month, settlements still pending, and the average number of days to close an exit — so you can see whether attrition is rising and whether exits are dragging.
Plans
Exit management, clearance, full and final settlement and the alumni register are part of the Starter plan, with payroll. Book a demo and the Verdeshell team sets up a 14-day trial for your company after it.