Sonal Sharma
Hi,
I am a new member to this group would like to know about No dues Clearance Certificate.
Does this certificate is necessary before the full&final settlement of an employee.
and what all points need to be covered in this.
thanx
Sonal

From India, New Delhi
Sadashiv Rao
5

Hi,

This is pertaining to your query " No dues clearence certificate" . Please keep the following points in mind.

1. This is given at the discretion of the Management .

2. If this is a genuine case wherein the employee has quit & does not owe anything to the organisation in terms of monetary / material property of the organisation then the certificate can be issued.

3. Before the final settlement is done remember to intimate about the employee's resignation ( so that finance /accounts starts working on the same & they will find out whether the individual owes to the organisation in terms of loan / advance / imprest showing against his name etc).

4. After you receive the information that there are no dues then you can issue the letter (on the letter head duly signed by the authorised signatory)

5. In terms of the company property like mobile handset / vehicle etc this shall be the admin dept duty to monitor & get the same back from the employee.

6.Only after everything has been returned then the letter can be issued.

Hope that my message is clear & that you have understood the same.

Best Regards,

Sadashiv :)

From Kuwait, Kuwait
anilanand
36

Dear Sonal

I strongly believe in No Dues Clarence Certificate.

Objective of this certificate is ascertain that at the time of leaving , an employee / executive does not owe any property belonging the company provided to him/her during the course of employment with the company.

This may be in terms of asset or cash.

Since every process in an industry or establishment starts from HR department and finally ends with HR department, in such scenario it becomes duty of HR department to ensure safe return of company property to company before the full & final settlement of dues in respect of individual under relieving.

In the proforma for no dues , HR department should send the format through concerned individual detailing date of relieving of the employee from the company to concerned HOD.

HOD by putting his/her signature on format , forwards the request to all HOD about reliving of indivual from company on specific date and also of any thing is due from the individual.

This format duly signed by every department reconciles the handing over and taking over of all company property , such as

1.Books issued to individual from library for enhancement and updation of skills.

2.Tools , computer , printer, typewriter issued to individual for use in office.

3. Company bag, mobile phone, Car, TV set, Fax Machine, Furniture provided by company for use by individual at his / her residence , provided by Administration department.

4. Due / recoveries against company loan , advances , TA Bill settlement and any other financial due to company or to individual by accounts department.

5. Leave status by time office.

When this information is available with HR deparment , it becomes very easy to calculate and settle the dues considering NDC issued by other departments.

It is irrespective of size of organisation to follow this practice. For every structured organisation i strongly belive this procedure is required for smooth functioning.

Regards

Anil Anand

From India, New Delhi
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