Final clearance is the process of confirming that an employee leaving the organization has:

• Returned all company property (keys, devices, ID cards, etc.)

• Settled all financial obligations (advances, loans, reimbursements)

• Completed handover of responsibilities

• Obtained sign-offs from relevant departments

It’s a final checkpoint to ensure both parties part cleanly and with all records in order.

• Protects the company’s assets and ensures their return

• Minimizes future legal or financial claims

• Provides documentation that the employee satisfied exit requirements

• Enhances clarity and professionalism in offboarding procedures

Typical sections include:

1. Employee details (name, ID, department, last day)

2. List of company property to return (laptops, phones, keys, badge, etc.)

3. Departmental clearances (IT, Finance, HR, Administration)

4. Statement of dues and deductions

5. Final settlement summary

6. Handover confirmation (tasks, documents, contacts)

7. Signatures (employee, HR, department heads) with dates

Each department verifies that the employee has no outstanding obligations in their domain:

• IT: Return of devices, revoking access, data handover

• Finance / Accounting: Settlement of advances, reimbursements, final salary

• Administration / Facilities: Return of keys, access cards, office equipment

• HR: Final review, exit interview, issuing of clearance certificate

Each sign-off should include a date, signature, and remarks if needed.

Clearance process should begin after the employee’s resignation is accepted or termination is confirmed—but before the last working day. Starting early allows time to resolve issues and ensure all departments complete their checks.

• Document the refusal in writing (date, reason given)

• Attach supporting evidence (e.g. photo record, notices)

• Use the signed clearance sections up to the point of refusal

• Escalate to HR or legal as needed to resolve outstanding items

Yes. Modern HRMS or offboarding systems can automate clearances using electronic forms, e-signatures, reminders, and dashboards to track incomplete items. This improves accuracy and accountability.

Retain clearance records according to company policy and local labor laws—often for at least the statute of limitations period. Maintain both digital and physical copies if required.

• Leaving departments unchecked or skipping sign-offs

• Vague or incomplete lists of assets

• No confirmation of dues or deductions

• Not preserving documentation of refusal or noncompliance

• Delaying the clearance process until the last minute