Employee Offboarding & Settlement

How to terminate an India EOR employee and process the Full & Final settlement.

When it’s time to end an EOR employment relationship, Omnivoo handles the offboarding process, including calculating the Full & Final (F&F) settlement and generating termination paperwork. This guide walks you through it.

Initiating Termination

To begin the offboarding process:

1. Open the employee's detail page

   Open the employee from your People page to reach their detail page.

2. Choose Terminate employment

   While the employee is active, open the ⋯ menu in the page header and choose Terminate employment.

3. Fill in the termination details

   Field	Description	Required
   They resigned / You’re ending it	Who ended the employment	Yes
   Notice given on	The day the resignation or notice was given. Defaults to today	Yes
   Last working day	Defaults to the notice period from their offer letter, counted from the notice date. You can pick another day, never before the notice date	Yes
   Note	A free-text note on why	Yes
   Waive notice period	Ends the employment on the notice date	No

Terminate employment stays disabled until you add a note. On success the dialog closes and you are returned to the People list. If something goes wrong, the error appears as a toast.

Termination is a significant action. Once confirmed, it triggers the settlement calculation. Make sure you’ve confirmed the decision and the termination date before proceeding.

Notice Period

EOR employment is India only, and the notice period is the one in the employee’s offer letter (commonly 30 to 90 days in India).

While they serve it, their page shows On notice and Serving notice until the last working day. They stay on payroll: each run pays them up to their last working day, and the Omnivoo fee is billed for those months. The day after their last working day the employment ends, and they drop off payroll and billing.

If you tick Waive notice period, the employment ends on the notice date, and notice period pay may still be owed as part of the settlement.

Full & Final Settlement

After termination is confirmed, Omnivoo automatically calculates the Full & Final (F&F) settlement. This is a complete accounting of everything owed to, and owed by, the employee.

Earnings

Component	Description
Pro-rata Salary	Salary for days worked in the final month
Leave Encashment	Payment for unused earned/paid leave balance
Gratuity	Statutory gratuity, shown with an “Eligible” or “Not Eligible” badge (eligible at 5+ years of service)
Notice Period Pay	Owed when the employer does not require the full notice period to be served
Bonus Payable	Any earned but unpaid bonus
Reimbursements	Pending expense reimbursements

Deductions

Component	Description
Advance Recovery	Any salary advances or loans not yet repaid
Notice Period Shortfall	When the employee did not serve the full notice period, the equivalent salary for the unserved days
Other Deductions	Any other amounts owed by the employee (equipment charges, training bond recovery, and so on)

The Net Settlement is total earnings minus total deductions.

The settlement is calculated automatically from the employee’s salary data, tenure, leave balance, and contractual terms. You review each line item before approving.

For a salary agreed in another currency, the conversion rate top-up held for the employee is paid on the final pay run on top of the settlement. See When the employee leaves.

Reviewing and Approving the Settlement

The settlement is reviewed and approved on the Settlement Approvals page, not on the employee’s detail page. From a terminated employee’s Documents tab you can click View Settlement to open it, or open it directly at /employer/eor/settlements?engagementId=....

On that page you review the earnings, deductions, and net amount, then click Approve Settlement and confirm. Approval is irreversible. For the full walkthrough, see Settlement Approvals.

Settlement Statuses

Status	Meaning
Pending	Settlement calculated, awaiting your approval
Approved	You approved the settlement; Omnivoo is processing the payment
Paid	The settlement amount has been disbursed to the employee

Termination Documents

For a terminated employee, the Documents tab on their detail page lets you generate termination paperwork. Click Generate Termination Documents to produce two PDFs:

• Relieving letter - confirms the employee has been relieved of duties as of their last working date.
• Experience letter - certifies the role and dates of employment.

Both appear in the document list to download once generated.

Post-Termination

After offboarding:

• The engagement moves to a completed/cancelled state and is no longer on active payroll.
• Employment records, payslips, and generated documents remain accessible.

Common Questions

Can a terminated employee be re-hired? Yes. You can hire them again through the standard hiring process. A new offer letter is generated and both sides sign it.

What if the employee disputes the settlement? Contact Omnivoo support with the details. We will review the calculation and provide documentation for each component.

How is gratuity calculated for India? Gratuity = (Last drawn Basic Salary x 15 x Years of Service) / 26. Statutory gratuity applies after 5 years of service, but companies may offer it earlier per policy.

What’s Next?

• Settlement Approvals - Review and approve the Full & Final settlement.
• Compliance & Documents - Your company’s verification status and signed agreements.
• Hiring an EOR Employee - Need to backfill the role? Start a new hire.