Employee Termination refers to the formal process of ending an employee’s service with an organization, which can be initiated by the employer (involuntary termination) or the employee (voluntary resignation). In industries like manufacturing, retail, logistics, and facility management, proper termination procedures are crucial to ensure compliance with labor laws, prevent disputes, and maintain workforce stability.

For businesses managing contract workers, gig employees, and blue-collar workforce, termination management involves exit formalities, full & final settlements, compliance documentation, and access revocation. Employers must adhere to legal requirements such as notice periods, severance pay, and gratuity settlements under the Industrial Disputes Act, Shops and Establishments Act, and other applicable labor laws. Companies use HRMS platforms and digital offboarding systems to automate clearance processes, conduct exit interviews, and ensure smooth employee transitions. A well-structured termination policy minimizes legal risks, maintains employer reputation, and ensures business continuity.