amar1109 Started The Discussion:
Hi Seniors Can anyone please tell me about full and final settlement process. Or how Full and Finale settlement is done in an organisation.
Full and Final settlement is the last settlement between employer and employee, in order to ensure the complete separation of both the parties, with respect to Money, methods, material and Non disclosure of organizational business process
The procedure follows as below,
1. As soon as the resignation acceptance, Hr department should communicate the same and last working day details of particular employee with Administration, Accounts and Operations Department and should ensure to receive a clearance certificate from all the informed departments with respect to material, Equipment's provided, Project/task completions etc before the end of the employee relieving according organizational mode of comfort and possibility.
2. On the date of last working day , It should communicate to the particular employee about the duration of FNF settlement receipt, Which varies company to company.
3. FNF should calculate on the basis of Days served, Entitled leaves available and any other monetary components to be included ensuring the deductions for the pay back of short service (if any).
4. Once the FNF is ready, you can call the so employee in person and submit the forms related to him, Such as relieving, Experience letter, Form- 16 AA, FNF form and cheque of payment due and get the acknowledgement of receipt in return.
The entire process should ensure that, there will be no more money, material etc existence between two parties.
As soon as the resignation acceptance, Hr department should communicate the same and last working day details of particular employee with Administration, Accounts and Operations Department and should ensure to receive a clearance certificate from all the informed departments.
FNF should calculate on the basis of Days served, Entitled leaves available and any other monetary components to be included ensuring the deductions for the pay back of short service (if any).
A sapmle Full and Final Settlement is below mentioned for your reference.
Full & Final Statement
Code : 0151 Date : 15th January' 2013
Name : Satyendra Singh Designation : ................................
Basic Salary : Rs. 3,600 Gross Salary/ Month : Rs. 8,000
Date of Joining : 20th April' 2011 Date of Resign : 06th December'2012
Confirmed : Yes Last Working Day : 14th December'2012
Sr. No. Payable Entitlements No. of Days Amount (INR) Deduction/ Recievable Entitlement Amount (INR)
01 Salary of December 14 Rs. 3,613.00 PF Rs. 195
02 Increment Arrear Rs. 200.00 ESI Rs. 67
03 Earned Leave 13 Rs. 1,560.00 ID-Card
05 Other Deductions
06 Notice 22 Days 5677
Total Rs. 5,373.00 Rs. 5,939.00
Net Payable (A-B) (Amount to be released at the Time of Full & Final Settlement) -Rs. 566.00
HR Manager Financial Manager General Manager
I hereby declare that I have received my full & Final claim from ................... as per above details of all my claims.
Name : Satyendra Singh Date :
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