Separation

Separation manages employee exits such as resignation, termination, retirement, end of contract, redundancy, or other approved departure reasons.

Separation should be controlled because it affects employment status, payroll, asset return, access, final settlement, benefits, and reporting.

Workspace Reference

Workspace	How Users Reach It	Main Actions
Workforce Setup	HR -> Setup -> Workforce Setup	Configure clearance items before exit workflows begin.
Employee Management	HR -> Operations -> Employee Management	Use Initiate Separation, Start Clearance, Create Settlement, and complete-exit actions from the employee detail where available.
Employee Lifecycle And Relations	HR -> Operations -> Employee Lifecycle And Relations	Review related disciplinary, grievance, relation, promotion, transfer, or salary history before final exit.
Payroll Processing	HR -> Operations -> Payroll Processing	Confirm final payroll, deductions, benefits, and final settlement payment readiness.

Separation Record

A separation record normally captures:

• Employee.
• Separation type or reason.
• Notice date.
• Expected last working day.
• Approved last working day.
• Notes or supporting information.
• Current separation status.

Review the employee’s active contracts, leave balances, benefits, assets, disciplinary matters, and payroll status before completing separation.

Separation Field Implications

Field Or Area	Meaning	User Impact
Employee	Person exiting the organization.	Drives employment status, payroll, assets, access, and final settlement.
Separation Type Or Reason	Why the employee is leaving.	Supports reporting, approval routing, notice requirements, and policy checks.
Notice Date	Date notice was given or recorded.	Helps calculate notice compliance and final working arrangements.
Expected Last Working Day	Planned final day before approval.	Supports handover, payroll cutoff, and clearance planning.
Approved Last Working Day	Final date accepted after review.	Drives final settlement, payroll cutoff, and status change.
Clearance Status	Progress of required exit items.	Blocks completion until assets, documents, access, and sign-offs are handled or waived.
Final Settlement	Payable or recoverable amount from the employee.	Must be reviewed before payment or recovery is completed.

Clearance

Clearance tracks items the employee must complete or return before exit is finalised. Clearance items are configured in HR setup and may include company property, access cards, documents, loans, knowledge transfer, keys, uniforms, or departmental sign-off.

Clearance should show who is responsible and whether each item is completed.

Final Settlement

Final settlement calculates the final amount payable to or recoverable from the employee.

It may include:

• Prorated salary.
• Leave pay.
• Gratuity or terminal benefits where applicable.
• Benefits or allowances due.
• Outstanding loans, advances, damages, or recoveries.
• Net settlement amount.

Final settlement should be reviewed and approved before payment.

Payment

When the settlement is approved, payment can be prepared using the configured payment method and reference. Review bank or payment details before completing payment.

If the final settlement is negative or requires recovery, finance and HR should agree how the recovery will be handled.

Completing Separation

Complete separation only after:

• The separation record is approved where required.
• Clearance is complete or exceptions are approved.
• Final settlement is approved and paid or otherwise resolved.
• Access and assets have been handled.
• The employee status should genuinely change to separated.

Common Mistakes

• Marking an employee separated before payroll or clearance is resolved.
• Paying final settlement before approval.
• Ignoring outstanding loans, advances, or assets.
• Using the wrong last working day.
• Forgetting to remove or review system access.
• Creating a new separation record instead of updating the active one.

Good Practice

Treat separation as a checklist-driven workflow. HR, finance, IT, and the employee’s department should each complete their part before the employee record is closed.