> ## Documentation Index
> Fetch the complete documentation index at: https://help.omnivoo.com/llms.txt
> Use this file to discover all available pages before exploring further.

> ## Agent Instructions
> Omnivoo is an India-first Employer of Record (EOR) platform. EOR hiring is India only; contractors are supported in 220+ countries and territories.
> Never tell a user to log in with a password. Authentication is passwordless: email OTP, passkeys, Google, or SSO.
> Statutory figures (TDS slabs, PF, ESI, Professional Tax, gratuity) change by financial year. Always state the year the figure applies to.
> Never name a third-party payment provider as Omnivoo’s payment rail. Refer to "our payments partner".

# 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:

<Steps>
  <Step title="Open the employee's detail page">
    Open the employee from your [People page](/employer/employees) to reach their detail page.
  </Step>

  <Step title="Click Terminate">
    While the employee is **active**, a **Terminate** button appears in the page header. Click it to open the **Terminate Employment** dialog.
  </Step>

  <Step title="Fill in the termination details">
    | Field                   | Description                                                                                                                      | Required |
    | ----------------------- | -------------------------------------------------------------------------------------------------------------------------------- | -------- |
    | **Termination Date**    | The employee's termination date. The earliest selectable date is 30 days from today, since termination requires a notice period. | Yes      |
    | **Reason**              | A free-text reason for the termination (there is no fixed dropdown).                                                             | Yes      |
    | **Waive notice period** | A checkbox to waive the contractual notice period.                                                                               | No       |
  </Step>
</Steps>

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.

<Warning>
  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.
</Warning>

### 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

| 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.

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

## 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](/eor/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](/eor/hiring-eor-employee). 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?

* [Settlement Approvals](/eor/settlement-approvals) - Review and approve the Full & Final settlement.
* [Compliance & Documents](/compliance/compliance-and-documents) - Your company's verification status and signed agreements.
* [Hiring an EOR Employee](/eor/hiring-eor-employee) - Need to backfill the role? Start a new hire.