Discharge & Retirement
An employment arrangement can end for a whole range of reasons – whether it is the employee or the employer terminating the employment relationship, make sure it is done the right way. It is advisable that an employer must keep records of when an employee leaves the business, including the name of the person who terminated their employment and details of how the termination took place (by notice, summarily, or in some other manner).
HoneycombERP® keeps employee records private and confidential and no one can access them other than the employee, their employer or relevant payroll staff. The system also manages and maintains all the critical information and also makes it readily available to the managers. At any time on request of an employee or former employee, detailed and complete employee’s records are made available, solving much of manager’s concerns.
Module Features
Release & Retirement Type Management
Using HoneycombERP®, whether it is a resignation or a termination or retirement, managers can manage all scenarios with great deal of ease. With the options provided each case can be dealt separately in accordance to the category it falls in. The system calculates all the payables and the deductibles automatically thus reducing manual work and ensuring accurate calculations.
Resignation Posting & Processing
A resignation by an employee is a conscious decision that they no longer want to be part of the employment relationship. HoneycombERP® provides interfaces that enables employees to put forward their formal resignation to their reporting manager. Upon receipt of the resignation, if recommended by the reporting manager, further processing commences. During the processing all payables and receivables are calculated and the case proceeds to final settlement and clearance.
Permanent & Temporary Discharges
In any working environment, there are cases where any number of individuals are sent on forced leaves (temporary discharge). HoneycombERP® accomplishes this by allowing managers to choose between permanent or temporary discharges. For temporary discharges, employee is not struck off strength but the status of the employee is set to inactive, which can be made active any time later. All transactions against the employee during the period are seized and remain dormant till the employee is made active again.
Forced and Timed Retirement Based on Rules
Mandatory retirement is the age at which persons who hold certain jobs or offices are required by industry custom or by law to leave their employment, or retire. Besides mandatory retirement, HoneycombERP® allows forced retirement options where an individual can be sent home with immediate effect. Additionally the HoneycombERP® rules engine, incorporates the organization’s specific rules and implements them wherever the criteria meets, automatically generating retirement and final settlement requests.
Final Clearance and Clearance Certificate
With HoneycombERP® managers are sure that that all the issuances are returned before the final settlement can commence; due to the fact that the system has complete record of what returnable assets were issued to the employee, which are still pending. Upon clearance, a certificate is issued to the employee and the system records are automatically updated clearing the way to final settlement.
Asset Release / Return and Adjustments
Assets issued to employee must be returned before one can leave the organization. HoneycombERP® has additional facility as it provides the option to adjust the asset amount if the individual wants to keep the issued asset. Financial value of the asset is calculated and the amounts are adjusted in the final settlement calculation. This provides better management of the issued assets as there are cases where company owned assets cannot be released / recovered from the employee. Provisioning of financial adjustment against the asset provides better alternates.
Final Settlement Processing and Approval
Upon clearance of issued assets and receive of clearance letter, HoneycombERP® calculated the final settlement of the individual. All the payables like To-date salary, leave encashment values, provident fund and other funds, and the receivables like tax, loans, deductions are automatically calculated and a final value is generated to be disbursed or in other cases to be recovered from the employee. Once the record is posted, it waits till it gets final approval. Upon approval the system generates vouchers and makes the selected individual as in active.
Employment Termination & Referral Letter
HoneycombERP® has a fully customized letter generation setup that is able to generate termination / referral letters in accordance to the organization’s formats. Ensuring complete synchronization, the system provides great ease of use and facility to the management. Upon termination although the employee is marked as inactive throughout the application, all the records are kept intact and in case of any specific requirement, all details of any individual can be viewed.
Post-Retirement Benefits including Pension and Insurances
Not only the system manages retirement, HoneycombERP® is fully equipped to manage post-retirement assistances as well. In accordance to the company policies, the system calculates and manages pensions, insurance plans and other benefits, if allowed to the individual.