SEPARATION

13.1 Introduction
While PI Industries would like to retain every valuable employee in its fold, it recognizes the right of an employee
to leave the company to meet his/her aspirations. We at PI Industries believe in treating with dignity every
employee leaving the company.

13.2 Types of Separation

The different types of separation are:
— Resignation - When an employee quits services voluntarily.
— Retirement - When an employee leaves after reaching retirement.
— Termination / Dismissal - When an employee is asked to leave by the organization.
as provided under clause 3.9)
— Expiry of contract - When an employee leaves after expiry of contract term.

13.3 Notice Period

The notice period applicable shall be as follows:

Cadre Notice Period in probation Notice Period after Confirmation

Junior Management and - above 30 Days 90 Days

Executive (E1, E2, E3, E4) 30 Days 90 Days

Officer/Associates (A2-AO3) 30 Days 30 Days

Trainee (A1) 15 Days 30 Days

• The notice period for an employee can be shortened/ waived off in lieu of payment for shortfall under
special circumstances solely at the discretion of the management on case to case basis.
• No leave is adjusted in lieu of notice period. Any leave (except sick leave & causal Leave) taken during
notice period would be treated as leave without pay.

13.4 Resignation
Resignation is defined as a permanent separation from employment that is initiated by the employee
13.4.1 Procedure for resignation
• An employee should not leave or discontinue his/her service from the company without first giving notice
in writing of his/her intention to leave or discontinue the service to the immediate reporting manager,
who must forward it to the Management (i.e. Functional) along with a copy to the Corporate/Plants HR
department.
• A resignation letter will be termed as acceptable only if It is in writing duly signed by employee (under
exceptional circumstances, the employee can also send across an email), clearly mentioning date/reason
of resignation, clearly identifying the last working day.

54
 • Acknowledgment of the resignation letter by the employees will be in the form of acceptance of
resignation note issued to the employee by the company.
13.4.2 Relieving date
• It is expected that the employee completes his/her work before the relieving date.
• The last working date will thus be mutually decided between the competent authority (Functional
Head/Reporting Manager) and the employee. The competent authority however can choose not to relieve
the employee on the date requested on grounds of exigencies of work or certain valid reasons.
• After employee has given his/her resignation letter, the company at its discretion can relieve the employee
even before the end of the required notice period based on the recommendation of the immediate
reporting manager.
13.4.3 Exit interview
• Each employee resigning from the company will go through an exit interview .The objective is to help
improve existing processes and work environment by understanding the reasons for employee attrition.
• The exit interview will be conducted by the Corporate/Plant HR for all employees in Middle/ Junior Level
management.
• It will be documented in the Exit Interview format by the resignee and submitted to the Corporate/Plant
HR during the Exit Interview process. The Exit Interview should be documented and kept on record of the
Company. Corporate/Plant HR would use the inputs to understand the reasons for his/her resignation.
They will attempt to incorporate suggestions, if any, with a view to improving company's working policies,
wherever necessary and translating the same into a process improvement opportunity
• The employee needs to provide his/her future contact addresses for further communication.

13.5 Expiry of Contract

Employees under training / contract for a specific time bound period will be reviewed for extension at the end of
contract term. The performance of the employee and also the requirement of the job done will be considered
during recommending extension.

13.6 Retirement on Superannuation

An employee shall retire at 58 years of age. Provided that an employee who attains the age of superannuation on
any day other than the first day of a calendar month, shall retire on the last day of that month.

13.7 Involuntary Termination

Involuntary Termination is ordinarily defined as permanent separation from employment that is initiated by
employer as a punitive measure against employee. Subject to the provisions of regulation, the company may
terminate the service of any employee if it is felt that his/her continuance in the service is detrimental to the
interest of PI Industries. The power to terminate the service of an employee shall be exercised only by the MD for
employees at all levels. The option to terminate the services of an employee shall generally be exercised under the
following circumstances:
• Violation of the Code of Conduct Policy
• Unacceptable conduct
• Unacceptable performance
• Retrenchment due to market conditions/ redundancy and lay offs
13.7.1 Violation of code of conduct
• An employee who breaks the Code of Conduct rules thereby causing ,breach of discipline & integrity
(mainly including theft, fraud, bribery, seeking illegal gratifications in connection with the company or in

55
 own personal interest), as specified in the Code of Conduct Policy, may be terminated with immediate effect.
• For such termination, the immediate superior/Functional Head should issue the employee with a charge
sheet, asking him / her to show a cause for the alleged violation.
• In case the employee does not comply or the immediate superior/Functional/ Head do not find his/her
explanation satisfactory, an investigation is instituted as per disciplinary procedure.
• An employee against whom disciplinary proceedings are pending shall leave or discontinue his/her service
in PI Industries solely at the discretion of the MD & CEO.
• Any notice of resignation given by such an employee shall not take effect unless it is accepted by the MD &
CEO and hence will not be officially relieved from the Services of the Company.
13.7.2 Unacceptable conduct
• An employee who displays unacceptable conduct (excluding reasons such as theft, fraud, bribery, illegal
gratifications in connection with the company as stated in the clause above), may be terminated after
three warnings have been issued to him/her in writing, copy of the same recorded in his/ her personal file
by the Corporate/Plant HR.
• The warnings would be given / issued in writing at reasonable intervals to allow the employee to
demonstrate an improvement in behavior. The breaches in conduct may have been committed for the
same reason or for multiple reasons, which indicate a consistency in deviant behavior and/or
unacceptable conduct.
13.7.3 Unacceptable performance
• Termination of service for reasons of performance, which is consistently 'unsatisfactory' or 'below
standard' may be resorted to by the company.
• The termination action can be initiated after the being unsuccessful at performance improvement plan
issued in writing to the employee by immediate superior/Functional Head.
13.7.4 Notice pay
In the case of termination of employee, notice pay for shortfall of notice period may be given by PI Industries as
Basic Pay in full and final settlement.

13.8 Handover procedure

13.8.1 A separating employee must settle all amounts due to the company prior to his/her separation .The employee
shall also, prior to final settlement, hand over any returnable company property or company leased property to
include;
• Laptops, computers, printer, access card and other accessories, etc.
• Corporate credit cards / charge cards etc.
• Telephone/s, cell-phones, dial-cards, other gadgets etc.
• Company's vehicle/s
• Other business tools/documents
• Outstanding advances/loans
• Any undertakings that he/she has given to the company
• No dues from Dealers/Distributor of his/her region/ territory as assigned (for Marketing Staff)
• In case, the accommodation of the separating employee has been arranged on lease by the company, the
employee shall vacate the said premises and will hand over the same in accordance with the condition of
the lease/leave and license agreement executed by the company with the owner of such premises. In case
of any loss or destruction to the property and /or any prior notice is required for terminating the lease/

56
 leave and license agreement and such notice is not given or any payment is required to be paid to the
owner of the premises in lieu of such notice and/or there is any lock-in-period of such lease/ leave and
license and premises is vacated before such period due to the separation of the employee, it is made clear
that the employee shall alone be responsible to pay all such amount together with the cost and
consequences thereof.
• Employee should hand over proof of investment as declared & made during the financial year.
•· The separating employee must make his/her own arrangements for settlement of all dues prior to his/her
discharge from the company
•· The relieving letter will be issued only if the employee settles all dues with the company prior to his/her
discharge from the company
•· The HR department will process the final settlement of the employee usually within one month from
his/her last day (provided all dues are settled by the employee, prior to his/her discharge)
• Due notice will be given to the concerned employee retiring during the year in case of Superannuation. At
the request of the employee, the Management may permit the employee to retain certain asset/s for a
period of say, not exceeding two months from the date of retirement. Thereafter, such asset/s must be
returned by the employee to the company promptly.

13.9 Full & Final Settlement

• In case employee has availed reimbursement of joining / relocation / notice pay / children admission
expenses or House Deposit fees etc. and is leaving before completing the required period (as agreed by him
/ her in undertakings), company reserves the right to recover the reimbursed amount from his full and final
settlement and other dues payable to him.
• It is the sole responsibility of the employee to submit No Dues on exit. If not done, employee will be
liable for company settlement.
• In case there is any amount due to the company, employee is liable to pay it to the company; otherwise
company is entitled to take legal course of action.

57