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Employee Offboarding & 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 from your People page to reach their detail page.
  2. While the employee is active, a Terminate button appears in the page header. Click it to open the Terminate Employment dialog.
  3. Fill in the termination details:
FieldDescriptionRequired
Termination DateThe employee's termination date. The earliest selectable date is 30 days from today, since termination requires a notice period.Yes
ReasonA free-text reason for the termination (there is no fixed dropdown).Yes
Waive notice periodA checkbox to waive the contractual notice period.No

The dialog states that this action requires a notice period. Confirm Termination stays disabled until you provide both a termination date and a non-empty reason, and it reads Processing... while the request is in flight. On success the dialog closes and you are returned to the People list. If something goes wrong, the error appears as a toast that clears itself after about 4 seconds.

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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 governed by the employee's contract (commonly 30-90 days in India). The Termination Date field enforces at least a 30-day window.

If you tick Waive notice period, the notice requirement is waived, but notice period pay may still be owed to the employee 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

ComponentDescription
Pro-rata SalarySalary for days worked in the final month
Leave EncashmentPayment for unused earned/paid leave balance
GratuityStatutory gratuity, shown with an "Eligible" or "Not Eligible" badge (eligible at 5+ years of service)
Notice Period PayOwed when the employer does not require the full notice period to be served
Bonus PayableAny earned but unpaid bonus
ReimbursementsPending expense reimbursements

Deductions

ComponentDescription
Advance RecoveryAny salary advances or loans not yet repaid
Notice Period ShortfallWhen the employee did not serve the full notice period, the equivalent salary for the unserved days
Other DeductionsAny other amounts owed by the employee (equipment charges, training bond recovery, and so on)

The Net Settlement is total earnings minus total deductions.

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

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

StatusMeaning
PendingSettlement calculated, awaiting your approval
ApprovedYou approved the settlement; Omnivoo is processing the payment
PaidThe 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 employment contract is generated.

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?