Employee offboarding is one of the most compliance-sensitive HR processes — especially in India and the UAE where final settlement has specific statutory requirements. Errors in the final settlement amount, missed PF transfer initiation, or delayed gratuity payments create legal liability for the employer.
This checklist covers every step from resignation acceptance to final payment.
Phase 1 — Resignation acceptance and notice period
Accept resignation in writing (email or physical letter) — acknowledge the last working day
Confirm notice period as per employment contract (typically 30–90 days)
Calculate whether notice buyout applies (employee leaving before notice period ends)
Communicate last working day to IT, finance, and the employee's team
Initiate knowledge transfer planning
Phase 2 — Final settlement calculation (India)
Final settlement in India must include all outstanding amounts payable to the employee:
Pro-rated salary for days worked in the final month
Notice period pay (if employer waives notice) OR notice pay deduction (if employee bought out)
Unpaid bonuses or variable pay earned but not yet paid
Leave encashment — outstanding earned leave balance × daily rate
Reimbursement of pending expenses
Deductions — outstanding loans, salary advances, or asset liabilities
Final TDS calculation on the entire settlement amount
India deadline: Full and final settlement must be paid within 2 working days of the last working day under most state Shops and Establishments Acts (varies by state — some allow up to 30 days).
Phase 2 — Final settlement calculation (UAE)
Pro-rated salary for days worked in the final month
End of Service gratuity — calculated per UAE Labour Law based on years of service and basic salary
Unused annual leave encashment — UAE law mandates encashment of all accrued but unused leave
Notice period pay or deduction as applicable
Reimbursement of pending expenses
Any outstanding deductions — loans or advances
Generate WPS final payment file for MOHRE compliance
UAE deadline: Final settlement must be paid within 14 days of the last working day. Failure to pay on time can result in a labour complaint and fines.
Phase 3 — PF / ESIC (India)
Generate PF withdrawal form (Form 19 for PF + Form 10C for EPS) or PF transfer form (Form 13) if employee is joining another employer
Submit ESIC exit on the ESIC portal with actual last working day
Provide UAN (Universal Account Number) slip if not already provided
Phase 4 — Documents to issue
Experience / relieving letter — confirms employment dates, designation, and exit reason
Payslip for the final month
Form 16 (India) — if leaving mid-year, provide Form 16A (TDS certificate) at time of exit, and full Form 16 at year-end
NOC (No Objection Certificate) if required for visa or future employment
Reference letter (if offered as part of exit policy)
Phase 5 — Access revocation
Revoke email and all application access on last day (not before, as employee may need access for handover)
Return laptop, access cards, mobile devices, and any company assets
Revoke VPN and remote access credentials
Remove from Slack, Teams, and internal communication tools
Transfer or archive employee data as per data retention policy
Automating offboarding
Peymatrix automates the entire offboarding workflow — final settlement calculation (including gratuity for UAE employees), PF exit filing, experience letter generation, and access revocation checklist — triggered from a single offboarding workflow.
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Final settlement, gratuity, documents, and access revocation — all in one workflow.
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