Employee Clearance

Employee Clearance is the sign off sheet a leaver is walked around: assets, IT accounts, finance dues, loans, HR documents, admin access and the departmental handover, each as its own line with its own owner. The pending amounts on those lines are what the final settlement recovers, and a line that nobody clears is what stops a settlement being paid too early.

Where

People Directory › Employee Clearance

Who uses it

HR raises it, each department clears its own line

When

Once the last working day is known, before the final settlement

Needs first

Resignation or a termination date on Employee Basic Information

Feeds

Final Settlement

What it is for

When a man leaves he is holding things: a locker key, a laptop, an advance against salary, a set of drawings, a gate pass, a login to the production system. Every one of those sits with a different department, and the only way a company recovers them is a list with a name against each line. This screen is that list.

The lines are typed. The screen does not generate them for you, and there is no template behind it, so somebody has to enter the areas that apply to this leaver. The Clearance Area on each line is picked from a fixed list of seven, which is what makes the lines consistent between leavers even though they are entered by hand. If the client wants the same seven lines on every clearance, they are typed each time or copied from the last one. That is worth saying plainly at implementation, because clients assume a checklist appears and then wonder why the sheet is empty. The screen that does generate its lines from a template is Employee Onboarding, on the way in.

What the screen does do for you is add up. The header's Pending Amount is the total of the line pending amounts, the header's Cleared tick is set only when every line is cleared, and the cleared date is stamped the day that happens. A cleared line with no date gets today's date.

One thing happens outside the sheet when it is finished. The moment the Cleared tick goes on - which is the moment the last line is cleared, not the moment the resignation was approved - the leaver is taken off every shift roster he was on. That is deliberately held back until the clearance is complete, because a man working out his notice is still due on his shift and still has to be marked present; it is only once the company has nothing left with him that he should stop appearing on a crew. Reopening a line takes the tick off the header but does not put him back on a roster: add him again on Shift Roster if he is returning to work.

It also holds the discipline that makes the sheet mean something. A line cannot be marked cleared while it still has a pending amount against it: either the amount is recovered and the line is cleared, or the amount stands and the line stays open. A line needs a name against who cleared it. And the same clearance area cannot be entered twice for the same department, so the sheet cannot quietly carry two contradictory answers for the same thing.

Every field, in plain words

Header

Field	What it means	What to put in it	Notes
Transaction No	The reference of this clearance	CLR-2026-0041	Required
Transaction Date	The day the clearance was raised	18-May-2026	Required
Employee	The leaver	EMP-0427 Imran Qureshi	Required. Pick him from the list
Employee Name		Fills itself from the employee. Leave it
Separation	The resignation document this clearance belongs to	EMP-0427	Pick it from Resignation
Last Working Date	The leaver's last day	14-Jun-2026	Required. Take it from the resignation, it is what every department works to
Cleared	Everything is cleared	Fills itself when every line is cleared. Leave it
Cleared Date	The day the last line was cleared	Fills itself. Leave it
Pending Amount	The total still being held against the leaver	Fills itself from the lines, for example PKR 18,500. Leave it
Remarks	Anything about the clearance as a whole	Handover to Mr. Asif Nawaz agreed by Production Manager

Clearance lines

One line per department that has to sign off. The lines are typed, not generated.

Field	What it means	What to put in it	Notes
Line	Line number	Fills itself
Clearance Area	Which department's clearance this line is	ASSET	Required. See the seven values below
Clearance Description	What exactly is being cleared on this line	Locker 427 key, safety helmet, two uniforms	Write the actual items, this is what the storekeeper reads
Department	The department responsible	DEPT-ADMIN Administration	Pick it from Department. The same area can appear twice only for different departments
Department Name		Fills itself. Leave it
Cleared By	The person who signed the line off	EMP-0210 Asif Nawaz	Required once the line is cleared
Cleared By Name		Fills itself. Leave it
Is Cleared	This line is settled	Ticked once the items are back and the money is recovered	A line cannot be cleared while a pending amount stands against it
Cleared Date	When the line was cleared	10-Jun-2026	Filled with today's date if you tick the line and leave it empty
Pending Amount	What this department is still holding against the leaver	PKR 18,500	Cannot be negative. The final settlement recovers the total
Remarks		Salary advance of May outstanding

The Clearance Area values, and when to use each:

• ASSET Company Assets. Tools, uniforms, safety equipment, lockers, vehicles, anything issued from stores. Also check the Facilities tab on the employee record for what was formally issued.
• IT IT Accounts and Devices. Laptop, SIM, email, production system logins, VPN. The money side is any device not returned.
• FIN Finance, Dues and Claims. Unsettled expense claims, travel advances, petty cash.
• LOAN Loans and Advances. Outstanding loan or salary advance balance, which is normally the largest pending amount on the sheet.
• HR HR, Documents and Leave. Service documents, the exit interview, the leave position and anything taken in excess of entitlement.
• ADMIN Admin, Access and Keys. Gate pass, access cards, hostel or transport, canteen card.
• DEPT Department Handover. The work itself: files, drawings, keys to a machine, a named successor. This is the line a line manager owns and the one most often left open.

How to configure it

1. Record the resignation first, or the termination date, so the last working day is settled. See Resignation.
2. Create a new clearance, enter the reference and the date, pick the employee, and enter the Last Working Date from the resignation.
3. Add the lines. There is no generated list, so enter one line per area that applies to this leaver. For a factory worker that is normally Company Assets, Admin, Loans and Advances, HR and Department Handover. For an office user add IT Accounts and Devices.
4. On each line write a real description of what is being cleared, and name the Department responsible.
5. Circulate it. Each department fills in its own Pending Amount if it is holding money, names who cleared it, and ticks Is Cleared only when nothing is outstanding on that line.
6. Watch the header. The Pending Amount is the running total, and the Cleared tick appears only when the last line is ticked.
7. Once the sheet is complete, pass the pending amounts to Final Settlement so they are recovered from the payout.

Scenarios

Do the clearance items come up by themselves

No. The lines are typed, one by one, and the Clearance Area is chosen from the fixed list of seven. There is no clearance template screen. Keep a standard set of lines written down during implementation and have HR enter the same set each time, or copy the previous clearance. The screen that does build its own lines from a template is Employee Onboarding on the way in, which is why joining and leaving feel different.

Finance wants to hold the settlement until the loan is recovered

Finance enters the outstanding balance as the Pending Amount on the Loans and Advances line and does not tick it. The header total shows the amount being held and the clearance stays incomplete, which is the signal to the settlement that there is money to recover. The line can only be ticked once the amount is nil.

A storekeeper ticked his line but the helmet never came back

Tick and amount do not sit together: a line cannot be cleared while an amount stands. If the helmet is chargeable, enter its value as the Pending Amount and the tick comes off. If the loss is written off, that is a decision somebody records in Remarks before clearing.

The IT line and the admin line are both about access cards

They are separate lines because they are separate owners. Put the system logins on the IT line and the physical card and gate pass on the Admin line. The same area cannot be used twice for the same department, but two different departments can each hold their own line.

A man was terminated, there is no resignation document

Leave the Separation reference empty and enter the Last Working Date from the termination. The clearance does not depend on there being a resignation, only on there being a last day.

What it is connected to

• Resignation or the termination date on Employee Basic Information establishes the last working day this sheet works to.
• The Facilities list on Employee Basic Information shows what was formally issued to the person, which is where the Company Assets line should be checked against.
• Final Settlement recovers the pending amounts. An incomplete clearance is the reason to hold a settlement.
• Employee Payroll Loan and Employee Loan data hold the outstanding loan balance that the Loans and Advances line reports.
• Leave Encashment and the leave position are what the HR line reviews.
• Shift Roster loses the leaver when this sheet is fully cleared. Up to that point he stays on his crew, because he is still working.

If something looks wrong

• "The clearance sheet opens empty" - that is correct, the lines are typed. There is no template that fills them in.
• "It will not let me tick a line as cleared" - a pending amount still stands against it. Recover the amount or leave the line open.
• "It says the clearance area is entered more than once" - the same area has been used twice for the same department. Use a different department, or put the detail on one line.
• "The header still shows pending after everything was cleared" - one line has an amount and no tick. The header is only the sum of the lines.
• "It will not save, it says the clearance needs a line" - a clearance with no lines clears nothing. Enter at least one.
• "The leaver is still on the night crew's roster" - the clearance is not fully cleared yet. One line has no tick, and he comes off every roster only when the header's Cleared tick goes on.
• "He is back and he has no shift" - clearing the sheet took him off his rosters and reopening it does not undo that. Add him on Shift Roster.
• "Finance says the settlement recovered nothing" - the amounts were written in Remarks instead of the Pending Amount column. Only the Pending Amount is a number the settlement can read.