Resignations & Notice Period

When an employee decides to leave the organization, Udyamo HRMS provides a structured resignation workflow that covers everything from the initial submission through notice period tracking to the final status update. This chapter explains how employees submit resignations, how notice periods are calculated, and how managers and administrators process resignation requests.

What You Will Learn

• How an employee submits a resignation request
• How notice period settings work and how to configure them
• How the last working day is calculated (automatic vs. manual)
• How holidays and weekends are excluded from the notice period
• The resignation approval workflow
• Resignation statuses and their meanings
• How to withdraw a resignation
• The notice period buyout option

Prerequisites

Required: You must have the Leave or Employee Lifecycle feature enabled. Resignation settings must be configured by an administrator before employees can submit resignations. See the Resignation Settings section below.

How Resignation Works — Overview

The resignation process in Udyamo HRMS follows a defined lifecycle:

1. Employee submits resignation — provides a reason and optionally a requested last working day.
2. Manager or admin reviews — can approve, reject, or request changes.
3. Notice period begins — the system calculates the last working day based on the organization's resignation settings.
4. Offboarding tasks are initiated — checklists for asset return, knowledge transfer, and access revocation.
5. Exit is completed — the employee's status is updated and full-and-final settlement is processed.

Configuring Resignation Settings

Before employees can submit resignations, an administrator must configure the organization's resignation policies using the Resignation Setting model.

Navigating to Resignation Settings

1. Click Settings in the left sidebar.
2. Select Employee Lifecycle (or HR Settings).
3. Click Resignation Settings.

Resignation Settings Fields

Tip: Notice period settings apply as the default for all employees. If specific departments or designations require different notice periods, you can override the value at the employee level during approval.

Submitting a Resignation — Employee Workflow

Employees can submit their resignation through the self-service portal.

Step-by-Step: Submit a Resignation

1. Log in to Udyamo HRMS.
2. Navigate to My Profile or Employee Self-Service.
3. Click Resign or Submit Resignation.
4. Fill in the resignation form:

5. Review the details.
6. Click Submit Resignation.

Tip: The Requested Last Working Day is a preference, not a guarantee. The actual last working day is determined by the notice period configuration and the manager's approval decision.

Warning: Once submitted, the resignation enters the Pending status and is visible to the employee's manager and HR administrators. The employee cannot edit the submission — they can only withdraw it (see below).

Last Working Day Calculation

Udyamo HRMS supports two modes for determining an employee's last working day after resignation.

Automatic Calculation

When the Last Working Day Calculation setting is set to Automatic, the system computes the last working day as follows:

1. Start from the resignation approval date (not the submission date).
2. Add the configured Notice Period (Days).
3. If Exclude Holidays is enabled, skip any dates that fall on public holidays defined in the holiday calendar.
4. If Exclude Weekends is enabled, skip any dates that fall on the employee's weekly off days (as defined by their work week schedule).
5. The resulting date becomes the Last Working Day.

Example:

Tip: The automatic calculation ensures compliance with your organization's notice period policy. The system accounts for the employee's specific shift and work week configuration.

Manual Calculation

When the setting is Manual, the system does not auto-calculate the last working day. Instead:

1. The manager or administrator reviews the resignation request.
2. During approval, the admin enters the Last Working Day manually.
3. This overrides any notice period formula.

Manual mode is useful for:

• Senior employees with negotiated exit dates
• Employees being released early by mutual agreement
• Situations where legal or contractual terms differ from the standard policy

Approving or Rejecting a Resignation

When an employee submits a resignation, the reporting manager and HR administrators receive a notification.

Step-by-Step: Process a Resignation Request

1. Navigate to Employees > Resignations from the sidebar, or click the notification.

2. The Resignations list shows all pending requests.

3. Click on the resignation to view details.

4. Review the employee's information:

   • Reason for resignation
   • Requested last working day
   • Current leave balances
   • Pending loan or advance amounts
   • Assigned assets

5. Choose an action:

6. If approving:

   • Confirm or adjust the Last Working Day.
   • Optionally adjust the notice period if the employee qualifies for a different duration.
   • Click Approve Resignation.

7. If rejecting:

   • Enter the Reason for Rejection.
   • Click Reject Resignation.

Warning: Approving a resignation triggers downstream processes: the employee's status changes to On Notice, offboarding checklists may be generated, and the payroll system is notified to prepare for the final settlement on the last working day.

Resignation Statuses

Every resignation in Udyamo HRMS has a status that reflects its current stage in the lifecycle.

Status Transitions

Pending → Approved → Completed
Pending → Rejected
Pending → Cancelled
Approved → Cancelled (withdrawal during notice period, if allowed)
Approved → Completed

Tip: The system automatically transitions a resignation from Approved to Completed on the last working day, provided all offboarding checklist items have been fulfilled. If items remain incomplete, an admin must manually complete the resignation.

Withdrawing a Resignation

An employee may change their mind after submitting a resignation. Udyamo HRMS allows withdrawal under certain conditions.

When Withdrawal Is Allowed

Step-by-Step: Withdraw a Resignation

1. Log in as the employee.
2. Navigate to My Profile > Resignation or My Resignation.
3. Click Withdraw Resignation.
4. Enter a Reason for Withdrawal.
5. Click Confirm Withdrawal.
6. If the resignation was in Pending status, it immediately changes to Cancelled.
7. If the resignation was in Approved status, the withdrawal request goes to the manager for re-approval. The manager can accept or deny the withdrawal.

Warning: If the manager denies the withdrawal of an approved resignation, the original resignation remains in effect and the notice period continues unchanged.

Notice Period Buyout

Some organizations allow employees to pay for the remaining notice period days instead of serving them in full. This is called a notice period buyout (or notice period recovery).

How Buyout Works

1. The employee submits a resignation and requests early release.

2. The manager approves the resignation with a buyout.

3. The system calculates the buyout amount:

   Buyout Amount = (Daily salary based on buyout basis) x (Remaining notice period days)

   For example, if the buyout basis is Basic Pay:

   Component	Value
   Monthly Basic Pay	INR 25,000
   Daily rate (30-day month)	INR 833.33
   Remaining notice days	15
   Buyout amount	INR 12,500

4. The buyout amount is deducted from the employee's full-and-final settlement.

5. The last working day is adjusted to the early release date.

Tip: Buyout is a two-way concept. The organization may also buy out the notice period by paying the employee for days not served. The direction depends on your organization's policy and the employment contract.

Enabling Buyout

1. Navigate to Settings > Employee Lifecycle > Resignation Settings.
2. Set Allow Notice Buyout to Yes.
3. Select the Buyout Calculation Basis (Basic Pay, Gross Pay, or CTC-based).
4. Click Save.

Viewing Resignation History

Administrators and HR managers can view all resignations — past and present — from a single dashboard.

Navigating to the Resignations List

1. Click Employees in the left sidebar.
2. Click Resignations (or navigate to Employees > Resignations).
3. The list shows all resignation records with the following columns:

Filtering Resignations

Use the filter options to narrow results:

• Status — Filter by Pending, Approved, Rejected, Cancelled, or Completed
• Department — View resignations from a specific department
• Date Range — Filter by submission date or last working day range

Employee Status During Notice Period

When a resignation is approved, the employee's status in Udyamo HRMS changes to On Notice. During this period:

• The employee remains on the active payroll until their last working day.
• Attendance tracking continues as usual.
• Leave requests can still be submitted and approved (subject to policy).
• The employee retains access to the self-service portal.
• Offboarding tasks can begin in parallel (see Chapter 40: Offboarding & Full-and-Final).

Warning: An employee on notice should not be removed from payroll until the full-and-final settlement is completed. Premature removal can lead to missing salary payments and compliance issues.

Common Errors and Solutions

Best Practices

1. Configure resignation settings before onboarding employees. Ensure notice period defaults are in place.
2. Standardize notice periods by designation level. Senior roles often have 60- or 90-day notice periods, while junior roles may have 30 days.
3. Act on pending resignations promptly. Delays cause uncertainty for the departing employee and their team.
4. Document rejection reasons. If a resignation is rejected, a clear reason helps maintain transparency.
5. Use automatic calculation for consistency. Manual mode should be reserved for exceptional cases.

What Comes Next

After a resignation is approved, the next step is managing the offboarding process and full-and-final settlement. Proceed to Chapter 40: Offboarding & Full-and-Final.