Full and Final Settlement of Accounts is a part of Separation Formalities to be completed to pay the legal dues of any resigned employees.
A formal resignation letter (duly signed) should be obtained from the resigned employee. Please note SMS/email / phone call are not formal ways of resignation.
When any employee resigns, they are required to serve a notice period on completion of which a No Dues Clearance Certificate required to be obtained from all the Dept concerned stating that he has no dues / issues pending with the Company.
On completion of the above procedure, his full and final settlment dues can be issued. The F&F consists of payment of
Unpaid Salary (if any)
Balance Leave Encashment (Annual Leave)
LTA / Medical or other Reimbursement pending
Notice Period Payment (in case of planned /mutual agreed resignation)
In addition, Gratuity Payments to be made if the employee has completed minimum 5 years in the Co. (If applicable)
PF Withdrawl / Transfer formalities to be completed (If applicable).
An experience letter / relieving letter can be issued to the resigned employee mentioning the Last working date.
Trust that clarifies.
Can you please let me know the time frame to issue the full and final settlement
Suppose if an emplyee put his papers on 19 Aug and wants to get relieve on 18 Sep since he has to serve one month notice period asper company policies. When should we diburse his salary should we calculate and disburse the salary of August on 7th of Sep(our salry is disbursed on 7th of every month) andv the salary of Sep after 30days.?
What is the procedure which is followed for final disbursement of salary within the company?
I am very confused please help.
yes, you can release his salary of august in Sept and hold September month salary for full n final settlement.
16. Wage period. --(1) Every person responsible for the payment of wages to an employee shall fix a period in respect of which such wages shall be payable.
(2) No wage period shall exceed one month.
(3) The wages of every person employed shall be paid before the expiry of the seventh day from the date on which the wages become due.
(4) Where the employment of any person is terminated by or on behalf of the employer the wages earned buy him and the remuneration in lieu of un-availed period of due leave shall be paid before the expiry of the second working day after such termination and where an employee quits his employment, on or before the next pay day:
Provided that no claim under this section shall be entertained unless it is preferred within six months from the date of its accruing except under special circumstances at the discretion of the Chief Inspector of Shops and Commercial Establishments Punjab.
1. Deduction from wages. --The wages of an employee shall be paid to him without deductions of any kind except those authorized by or under the Payment of Wages Act, 1936, in so far as such deductions are applicable to the employee and in such manner, to such extent and to subject to such conditions as are specified in that Act.
2. Realisations of compensation. --(1) In case of contravention of the provisions of section 16, if a judicial Magistrate is satisfied that the employee has not been paid his due wages, he shall direct the employer to pay the wages along with compensation not exceeding eight times the amount of wages withheld.
(2) The amount of wages withheld and compensation payable under this section shall for the purposes of its recovery, be deemed to be a fine imposed under this Act in addition to the penalty imposed under section 26 and shall be realized as such.
The Managing Director
I thank you for your reply mail in reponse to my mail requesting you for the full and final settlement of my account with your company, persuant to my resignation of my job as General Manager with your company vide my letter dated 23-11-2009, mailed to you and the same is on your system.Such is being the case, saying I am remaining absent unauthirisedly is some thing misguiding.
To the best of my sincere and honest efforts, I have discharged my responsibilities and put in my hard work to run the unit succesfully and you are very well aware of this fact.
I have mentioned in my resignation letter the circumstances which were compellimg me to relinguish my job. Setting up of unit with investments is the decision of the promoters and appointing manpower to run the establishment again is nothing a new phenamina and there are all the part of any business.Your investment is intact in your factory.Furtehr it is the prerogative of any employee whether to continue or not in the employment and it is his/her fundamental rights.The employer is legally bound to settle the legitimate and legally entitled dues of any employee upon quiting his employment.
In my case, I have tendered my resignation on 23-11-2009 and according to you, I have received my salary (Received only part of my salary) for the month of March,2010 and as requsted by you I had continued my job up to April 10,2010. Thus it is evedent that I have given your management more than 4 months notice and therefore I have not stopped discharging my duties abrubtly.
Sir, Iwas your employee. An employer refusing to settle the account of an employee upon quiting his job is something unfair. In one of the cases the Apex court has ruled that an employer fails to settle the legitimate dues of an employee is unfit to be an employer.I will not be ruined,if you fail to settle my account. But, as an employer , you should notattempt to fish in the urine.The disgrunted employees will not hesitate to ruine and kill your image and credibility in the market as well as in the industrial community.
The holy quiran advocates that every true muslim should spare a portion of his profit/earning for charity.And where as you are not inclined to settle the dues of an employee who has rendered his service to you and your company and failure to settle the dues is nothing but a sin on your part,
In all fairness I request you to please settle mu dues, i.e. Salary for the days worked, encashment of my earned leaves @ 30 days per year, unutilised sick leave lying in my credit etc immediatly.
pl help me to get mysettlement
Experience and Relieving issue dates can vary, but work period cannot be changed. For ex: 'X' is an employee who worked from 1st Jan 2011 to 1st Jan 2012. Experience issue date can be some 10th Jan 2012. But the specification in the document should be as 'X' worked from 1st Jan 2011 to 1st Jan 2012. Relieving issue date can be some 15th Jan 2012. But the specification should be as :'X' was relieved from his services with effect from closing hours on 1st Jan 2012.
Hope this info may help you in clarifying your doubt!
Thanks & Regards,
Dear Srishreesree & Pearlhr & Birendra Raj & other,
Can someone please help me with the notificaion or govt document stating the Leaves policy encashment.
Majorly i need in that is -
1. How many leaves can be accumulated n encashed???
2. Stipulated time frame to clear those leaves??
3. At what rate these leaves has to be cleared, i mean its on basic or Gross??
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