Open ERP

Offboarding

Control separation, departmental clearance, asset recovery and employee final settlement as an auditable sequence.

Employee Separation

FieldWhat it controlsExample
Request / Requested Last Working DateWhen separation was initiated and the employee/requester proposed exit date.15-08 / 31-08-2026
Approved Last Working DateAuthoritative exit date used for settlement and Employee exit details.31-08-2026
Separation TypeRESIGNATION, TERMINATION, RETIREMENT, CONTRACT_END or OTHER.RESIGNATION
Notice Served / Recovery / WaivedNotice compliance and any salary recovery/waiver.15 days · ₹10,000 · No
Exit Interview / Final Settlement ReadyOperational completion indicators before settlement.Checked after completion
StatusDRAFT, SUBMITTED, APPROVED, CLEARED, SETTLED or CANCELLED.CLEARED

Employee Clearance Tasks

Use child rows for HR, Accounts, IT, Administration, Stores or another area. Each row records task, status, who cleared it, date/time and remarks. Asset return should reconcile Employee Asset Assignment before clearance.

Final Settlement

Period and service

Select Employee and Separation, confirm last working/settlement dates, salary period and payable days.

Earnings

Salary Amount + Leave Encashment + Gratuity + Bonus + Notice Pay + Other Earnings.

Deductions

Notice Recovery + Loan/Advance Recovery + Asset Recovery + Other Deductions.

Net Settlement

Earnings less deductions. Verify against payroll, leave, loan and asset records before approval.

ValueBehaviourChoose it when
DRAFT / SUBMITTEDPreparation and approval request.
APPROVED / REJECTEDAuthorised or rejected settlement decision.
NOT_POSTED / POSTED / REVERSEDAccounting lifecycle retained separately from approval.
UNPAID / PAID / PARTIALCash/bank settlement state retained separately from posting.

Close the employee record

  1. 01
    Approve separation

    Confirm authoritative last working date and notice treatment.

  2. 02
    Complete clearances

    Return assets, clear loans/advances and obtain departmental sign-off.

  3. 03
    Approve settlement

    Reconcile all earnings and deductions before posting/payment.

  4. 04
    Update Employee

    Set Exit Date, Employment Status EXITED and deactivate where appropriate so future regular payroll excludes the employee.

Next guideHRMS & Payroll overview