Do you intend to quit your current job? Leaving a job you’ve settled into is risky, especially without a solid backup plan. But it is sometimes required to advance in your career. Some of the critical things to consider when you are resigning are your options for your next job or business venture and factors impacting your personal finances.
For instance, if you’ve been with your company for three years or more, you may be eligible for various benefits even after you leave. However, it’s essential to understand the process for claiming these benefits before resigning.
This article explores the ins and outs of resigning from your job and provides you with a solid checklist for resignation. Keep reading!
Top Resignation Checklist
By the end of this resignation checklist, you’ll have a better understanding of how to approach leaving your job and what steps to take to ensure your financial stability.
1. Gratuity Benefit
A gratuity is a lump sum payment given to an employee by their employer to symbolise appreciation for their service. Employees who have completed at least five years of continuous employment with an organisation are entitled to gratuity under the Payment of Gratuity Act of 1972.
So if you’ve completed 5 years in your current company, don’t forget to check with your HR department about the gratuity amount and the method for claiming it.
2. Leave Encashment
Another important employee perk in the resignation checklist is leave encashment. You get earned leaves every year from your company. If you don’t use them, they are carried forward by your employer. In such a case, your employer is bound to compensate you for the remaining days.
This can be a handsome amount if you have served the company for many years and haven’t taken much leave.
3. Form 16
You must be familiar with Form 16 if you work for a living. It’s a salary certificate letter from your company detailing your earnings and tax deductions. It’s important to save copies of your Form 16 from previous financial years or forward them to your inbox before resigning.
These documents can come in handy when dealing with any income tax issues in the future. You can also give them to your new employer for tax deduction purposes.
4. Employee Provident Fund (EPF)
The Employee Provident Fund (EPF) is a monthly deduction from your income. Every employee is required to contribute to EPF, and your employer also contributes an equivalent amount. So, before you bid adieu to your company, it’s a good idea to jot down your EPF account number and contact details of the HR or Finance team.
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Also, save a copy of the latest account statement for your records. After leaving work, you can withdraw your balance or transfer it to your new employer’s EPF account.
5. Employee Pension System
The Employee Pension Scheme (EPS) is a component of the EPF system that pays a pension to employees who have worked for an organisation for at least ten years.
But there are some other criteria related to your age and membership of EFPO. So, check with your human resources department about your eligibility to claim EPS benefit and how to claim it.
6. Allowances
In addition to your base wage, you may receive other allowances such as housing rent allowance, conveyance allowance, and so on.
Check with your HR department which allowances are applicable in your case. Also, enquire if these allowances will be provided to you until your last working day.
7. Company-provided Medical Insurance
Some medical insurance companies offer their employees coverage when they leave their employment. Check if your firm provides such a mediclaim.
Because, if not, you’ll have to get your own health insurance as soon as you leave your current organisation.
8. Have a Contingency Reserve
One of the critical things to consider when you are resigning is to have some extra cash on hand for those unexpected bills or crises that appear when you least expect them.
And, if you’re going to take a break before starting your next job, be sure you’ve saved enough money to pay your expenditures while you’re off.
9. Salary Account
If you’re leaving a job, make sure to update your salary account information with your company. You may also lose some of the unique benefits, reward points, or discounts you’ve received.
Furthermore, the conditions for maintaining your average minimum monthly amount may vary. Contact your banker and inquire about the necessary changes to be made.
10. Notice Period Buyout
If you are unable to serve the notice term specified in your employment contract, you may be eligible to purchase the notice period.
But your company must allow you to do that, and there shouldn’t be any bond to restrict notice period buyout. Check with your human resources department about the buyout amount and procedure.
To summarise, quitting a job can be stressful, but taking care of these crucial employee perks and personal finance issues can help make the transition easier. Before leaving, you must contact your HR department for all relevant documentation.
So, while packing your belongings and saying goodbyes to your colleagues, don’t forget to tick mark all the boxes in this resignation checklist.