Swastik73
Human Resource And Industrial Relations
Kamadana Pradeep
Hr Professional
Vinay22.professional
Strategic Communications
Bhanupraveen_m
Hr Executive
Knarayan
Service
Vjdj
Professional
Syp
Service
+1 Other

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Hi all,
Request some information on what final settlements/ benefits should an employee expect during his resignation/ removal from an org.
what should the companies duties be with release of employee(releaving cert/ experience cert), transfer of pf, other benefils (unavailed leave)etc.
regards

Dear Syp,

The following is usually followed during separation:

i) Notice pay in case of termination/ Retrenchment benefit(under ID Act, 1947, if applicable/ Notice pay to be paid to Employer in case of Resignation without serving the Notice Period by employee.

ii) If PF is present then Form 13 is to be issued by New Employer not the Present Employer. If the person is not in employment in case of termination he/she can apply for voluntary withdrawl of PF by submitting Form 19.

iii) Accumulated Leave encashment

iv) Gratuity if applicable

v) Release-cum- Resignation acceptance letter (can be given separately also). Full and Final Settlement Letter

vi) Experience Certificate if asked by the employee.

vii) Request for release of personal documents held by the company(if any) like Employment Exchange Card, Passport ect.

Yes, and obviously, the salary due should also be paid, I have mentioned it here because all due adjustments are done by the following method by the Company:

a) Salary due

b)Leave Pay due

c) Gratuity due.

Revert back for further queries.

Regards,

SC

Hi Swastik,
In addition, there is one more document which is very essential apart from all. That is 'NO DUES CERTIFICATE' or 'CLEARANCE CERTIFICATE' from all the departments stating that there are no company documents or any other company material/property is lying with the employee. Also, depending on the position of the employee leaving, the handing over and taking over document also is necessary sometimes.
Regards,
PRADEEP :)

Hi SC,
It is not the release cum resignation acceptance letter, 'No dues Certificate' is something which will be certified by all departments vis a vis, Accounts, HR, Stores, Purchase, Library etc along with the department boss stating that there are no dues against the name of the leaving employee. This is nothing to do with the acceptance letter.
Regards,
PRADEEP

A final settlement flow chart will be something like this .
a) Receiving of Resignation letter from the employee through the departmental head giving the exact date of relieving.
b) Issuing Acceptance Letter and asking the individual to clear all his dues, return tools and files given to him for use.
c) On receiving the No Dues Form signed by each department e.g. stores, adminis, financne, it, etc.etc. to initiate final settlement calculation
d) Keep in mind the notice period required and served
e) Calculation will have prorated salary for the particular month, unpaid dues if any, as per company policy, leave encashment, if permissible and deduct statutory dues, debits as mentioned in No dues form and IT as applicable.
f) Settlement are always to be paid through a/c.Payee Cheque or by crediting his bank account.
g) Issue a Service Certificate
h) Do not forget to host a farewell get-together too.

Dear Pradeep,
The Release Letter along with the Full and Final Settlement Letter is only issued after you get the no due certificate. This No due certifiacte is a internal document between you and your employer and cannot be demanded by your current employer.
Regards,
SC

Sir, I would reallly be thankful, if you can mention me few sources where I can find the legal rules and details that a HR should know. Regards, VINAY
Dear Vinay,
You have to refer following labour laws while full and final settlement takes place.
1) Company Employment Standing Order which is approved by concerned Labour Commissioner.
2) Payment of wages Act, 1936
3) Industrial Disputes Act, 1947
4) PF Act, 1952
5) ESI Act, 1948
6) Gratuity Act, 1972
8) Bonus Act, 1965
These are main laws under which company has to make full & final.
Regards
Sidheshwar

Dear Syp,
On submission of the resignation letter employee should get nNo Dues/ clerance from Finance / Payroll, Admin, IT(Software Co') / Maintenance (if Manufacturing Co') Library, and submit one copy to HR in the notice period itself. And the No Dues must have the information about leave balance (Accumulated Leave encashment) get certified by HR.
(So that HR can prepare the release letter/ relieving letter / resignation acceptance letter)
PF Withdrawal, Superannuation (if applicable), Gratuity (if applicable) forms can be collected before he leave the organization.
regards,
Praveeb

NO DUE CERTIFICATE FROM THE DEPARTMENT HEADS
To: The Concern Dept. Heads Dt:
The following Employee is resigned and relieving services, so please give his particulars in the below format :
Name of the Employee : Mr. Emp. No. :
Designation : Location :
Department : D.O.J :
D.O.Resignation : D.O.Relieving :

CLEARANCE FORM
Dept. Dues if any Signature/ Name of H.O.D
Own Dept.


Stores


Mess & Canteen


Fin. & Accts.


H. R. Dept.


Others



Note: If the space is not sufficient please attach a separate sheet.

____________________ ________________________________
(Signature of Employee) Signature of HR Head


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