Exit Policy

The purpose of an employee exit policy is to have a process in place when an employee is leaving your employment (resignation, retirement, end of contract etc) When an employee resigns from their position, they should submit a written letter of resignation to their immediate supervisor based on what their notice period is. This could be stated in the employee’s letter of engagement.

The exit policy aim to achieve:

• To explain in detail the steps involved in separation of employee.
• To complete the separation process in a manner that would ensure that the employee gets his/ her full and final settlement as per the policy
• To ensure that the handover process is completed in a manner that would ensure that Institution interests are maintained.
• To make reasonable efforts to determine reasons for employee’s separation in an effort to improve Institution performance and employee retention

Exit Policy Elements

An exit policy usually includes

• Purpose
• Scope
• Objective
• Process for each type of employee separation
• Conditions during the notice period
• Exit Procedure
• Responsibility of the individual department
• Exit Interview

Exit Policy Development

The following steps summarize the key stages involved in developing exit policy

Identify need

The organization needs to constantly assess its activities, responsibilities, and the external environment in order to identify the need for exit policy and exit procedures.

Identify who will take lead responsibility

Delegate responsibility to an individual, working group, HR Manager, sub-committee or staff members, according to the expertise required.

Gather information

What are the legal responsibilities in this area? Is your understanding accurate and up to date? Have other organisations tackled the same issue? Are there existing templates or examples that you could draw on? Where will you go for guidance? What should be clearances an employee should must take for exit?

Draft policy

Ensure that the wording and length or complexity of the policy are appropriate to those who will be expected to implement it. It should be in simple language.

Consult with appropriate stakeholders

Exit policy is most effective the potential implications of the policy are discussed amongst stakeholders.

Finalise / approve policy

Who will approve the policy? Is this a strategic issue that should be approved by the Management Committee or is the Committee confident that this can be dealt with effectively by staff? Bear in mind that, ultimately, the Management Committee is responsible for all policies and procedures within the organization.

Consider whether procedures are required

Procedures are more likely to be required to support internal policies. Consider whether there is a need for clear guidance regarding how the policy will be implemented and by whom. Who will be responsible for developing these procedures? When will this be done? What will be the processes for consultation, approval, and implementation?

Implement

How will the policy be communicated and to whom? Is training required to support the implementation among staff and volunteers? Should the organization produce a press release?

Monitor, review, revise

What monitoring and reporting systems are in place to ensure that the policy is implemented and to assess usage and responses? On what basis and when will the policy be reviewed and revised?

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