Employee Exit Process (Resignation)

🔍 What is the Employee Exit Process?

The Employee Exit Process in the HRM → Employee module is designed to handle the formal resignation, notice period, handover, and final settlement of an employee. Once started, the exit process makes sure the employee’s access, salary, leave balance, and other related items are managed in line with company policy.

You can launch the exit process from either the HRM → Employee module or from the Users → Users module — both open the same person record, and the Exit Process section lives inside the Employee data of that record.

📍 Screen: The Exit Process fields are part of the Employee aside, inside the Exit Process section. They are visible only when the user’s Is Employee flag is on. After the User vs Employee module split, account fields (name, role, password) live on the User aside, and HR data including Exit Process lives on the Employee aside — both refer to the same person.

🛠 Steps to Start the Exit Process

1. Open the Employee Record

📍 Screen: Go to HRM → Employee (or Users → Users). From the list, click the employee row you want to process — the Employee Details aside opens. Click Edit in the aside header and scroll to the Exit Process section.

2. Enable the Exit Process Toggle

• Tick the toggle labelled “Tick to start exit process” (field name Start Exit).
• The remaining Exit Process fields appear only after this toggle is on.
• The view-mode header of the aside also shows an Exit in Progress chip the moment this toggle is saved.

3. Fill the Resignation Details

4. Assign a Handover Person

• Handover Person dropdown — pick the colleague who will receive the knowledge transfer and responsibilities from the resigning employee.
• Choosing a handover person is optional at the time you tick the toggle, but you must select one before the exit process can be considered complete from an HR standpoint.

5. Mark Handover Completion (Optional)

• Once the knowledge transfer is finished, tick “Tick if handover is completed” (field name Is Handover Completed?).
• This toggle appears only after a Handover Person is selected.
• It is purely a record-keeping flag — it does not change the resignation date, the relieved date, or any salary / leave behaviour.

⚠️ Submit-time validation

• Resign Date and Notice Period are mandatory once Start Exit is ticked. Saving without them surfaces the standard mandatory-fields warning.
• Resign Date is correctly patched on both create and edit flows — an earlier bug where the date wasn’t loaded back into the form on edit has been fixed.

🔒 What Happens After the Exit Process is Started

Last Date of Employment

• The system treats the calculated Relieved Date (Resign Date + Notice Period) as the employee’s last working day.
• This is enforced server-side. After this date:
  • The employee cannot log in to DaaiSuite.
  • No salary is generated for any future month.
  • No leave accruals are added to their balance.

Final Settlement

• The final settlement = pro-rated salary for the partial last month + leave encashment as per the company’s leave settings.
• All settlement calculations follow the latest applicable salary record on file for the employee.

Leave Encashment

• Any unused leave balance is encashed automatically together with the last salary.
• Encashment behaviour is driven by company-wide leave settings — specifically the Leave Accrual rule, Carry Forward Limit, Leave Encashment Limit, and the Leave Encashment Trigger.
• Encashment uses a /30 days divisor (per-day leave value = monthly salary ÷ 30).

📍 Screen: Configure these rules under Settings → Leaves → Leave Details. (Leave settings now live on a dedicated Leaves Settings page rather than being mixed into Primary Settings.)

👁 What You See After Resignation

• The Employee Details view shows an Exit in Progress chip in the header summary along with Resign Date and Handover (Complete / Pending) chips.
• The Exit Process section in view mode lists Start Exit, Resign Date, Notice Period (in days), and Handover status.
• A resigned employee’s record stays in the system — it is not deleted — so the audit trail, past payslips, attendance, leaves, and CRM ownership remain intact.

📌 Resigned users still appear in dropdowns — only when editing past records

• When you create a new record (Client, Project, Lead, Expense, Reimbursement, Asset, etc.) a resigned employee is hidden from owner / assignee dropdowns — you cannot assign new work to them.
• When you edit an existing record that was already owned by or referenced a now-resigned employee, that employee will appear in the dropdown so the historic ownership is preserved. Replacing them with an active employee is up to you.
• This applies across CRM, Client, Project, Expense, Reimbursement, Asset, User, and Employee dropdowns.

📌 Key Notes

• The exit process can be initiated from either the Employee module or the Users module — the Exit Process fields belong to the Employee data and are saved together with the rest of the form.
• You cannot fully complete the exit process without selecting a Handover Person.
• Last Working Day — the system always uses the calculated Relieved Date (Resign Date + Notice Period) as the cut-off for login, salary, and leave accrual, regardless of whether Is Handover Completed? is ticked.
• After the Last Working Day the employee cannot log in, no salary is generated, and no leave is accrued beyond that date.
• Final settlement uses the latest applicable salary record and the company’s configured leave policy.
• Reactivating a resigned employee — if the resignation was recorded by mistake, untick Start Exit on edit and save; the Exit fields clear and the employee is treated as active again. Re-enable login and re-assign through the User aside.

💡 Tips

• Enter the Resign Date the day the employee submits the resignation, not their last working day — the Relieved Date is computed for you.
• Use calendar days, not working days, in Notice Period (Days). Holidays and weekends are included by design.
• Pick the Handover Person early; saving the form without one means the exit cannot be closed cleanly later.
• Confirm the leave balance and the latest salary record before the relieved date so that the auto-generated final settlement matches what HR expects.
• Run a quick check of the Settings → Leaves values (Carry Forward Limit, Encashment Limit, Encashment Trigger) before processing your first exit so the encashment math is what you intend.