Legal Definition Or Legal Format Of F&F Settlement Form. - CiteHR
Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Talentsorcerer
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Dear Seniors,
Greetings for the day,
A F&F settlement form can be legally challenged or It can used as a legal proof of separation or termination of an employee by the employer if any question arises? is there any legal definition or legal format of F&F settlement form and any legal act which defines the F&F settlement process. please guide me on this.
Thanks and Regards

Deepak_2006: No legal process, per se. Each case can be brought up and dealt on a case to case basis under provisions of applicable labor act.
Instead of asking a vague and academic question, it is a better idea if you do you all are details of what the problem is then only the members on the forum can give you a proper answer. Otherwise you will get wrong answers which do not make sense in
Dear Seniors,

Thanks for your Suggestions.

I am working in a manufacturing company, I got a case regarding the F&F process in my company -

One electrician sent a legal notice to the company that Company terminated him without any prior notice and information. but this is a fake statement. Company relieved him on his desired date before completeing his notice period and clear his all dues to him. now of this settlement we have only one record - that is our F&F settlement form and No dues letter. which are signed by him.

As per answering the legal notice We can not use our F&F settlement form and No dues letter. as per our advocate, for them it is a piece of paper can not be used as a legal proof of his seperation.

Now In the company as a HR this is my task to create a new Full & final Settlement form which based on Legal acts and can be used as a legal proof in these type of situations. and I am also agree with my comany management there must be a permanent lagal solution of these type of problems.

I am very grateful to get your answer and solution of this question.

With Best Regards

Deepak Agarwal

Okay. The information is still incomplete.
The electrician in question, has resigned? Do you have the resignation letter? Have you given him an acceptance of the same? Is there a written request asking for an early leaving?
If you do not have the above, then you need to create a process in your company where these documents are taken whenever somebody wants to leave. When someone leaves, on short or no notice, you should create a internal memo showing the number of days of short notice and the cost of the same being set off against the amount of salary due for the day's worked. It is not the format of F&F but the supporting documents that need to be kept. Your problem here seem to be more with the fact that you don't have a resignation letter in the first place.

To my knowledge there is no labour law which governs the full and final settlement other than gratuity ,EPF and welfare funds etc.Even salaryabove Rs 18000/pm is not governed by any law.
Factories act requires pay,net of wages on termination of employment (which includes resignation) to be paid within 2 working days and all pending leave to be encashed at full salary rate.
Similar provisions are there in most shop and establishment.

Section 79 covers only annual leave.That too for 'workers' only.What about others?
Definition of worker under factory act covers every person in the factory except the factory manager and occupier. So it applies to everyone. Factory act has only concept of leave - 1 day for every 20 worked. So there is only annual leave and that is what is covered in sec 79

1. Sir(s), so far as I understand the term "settlement" is a matter of industrial dispute and the term "full and final settlement" has no where been defined in any of the labour laws. In my opinion, it simply means that as an employer, every legal claims/dues have been paid to the employee/workman and on behalf of employee/workman, it can be called as he had returned/paid all the goods, or dues in the form of loans etc. to his employer.

2. Even if any form of "Full and Final settlement" is devised and put to use, in my opinion, it will be of no legal utility or use since even after signing the said form, the aggrieved employee/workman still can claim dues which were not paid to him, though payable under any law in force. However, such subsequent claims of the workman/employee can be raised within the time limitation as laid down under law.

3. The said proforma of "full and final settlement" as mentioned by the member who raised this thread, if put to use, can also be used against the employer in situations where it is found later on that some article etc. is to be recovered from left employee/workman and also in such cases of misappropriation or fraud detected after leaving of job and after signing of said form of "full and final settlement."

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