Full And Final Settlement - XLS Download [Thread 221398]

Hi,

In our company, employees are receiving their full and final settlement within 45 days, even if they have served notice as per the company's norms. Please advise on what the criteria for full and final settlement should be.

In my previous company, if an employee gave notice of leaving, then on their final day, the company would provide their full and final settlement along with a relieving letter.

Regards,
Trapti

Hi,

In our company, employees are receiving their full and final settlement within 45 days, even if they have served notice as per the company's norms. Please advise on what the criteria for full and final settlement would be.

In my previous company, if an employee provided notice of departure, then on their final day, the company would provide their full and final settlement along with a relieving letter.

Regards, Trapti

Dear Trapti,

The full and final settlement should be completed on the last day. If the employee has given notice, all formalities should be completed on the last day of the notice period. This includes completing relieving procedures, issuing the experience letter, and making the full and final payment.

Thank you.

Hi,

Full and Final Payment, i.e., settlement of service benefits, should be done on the last working day itself by the employer if everything is in order from the side of the employee.

Mohan Rao
Manager HR

Dear Trapti,

As a principal employer, the company will have to ensure that the contractor maintains ESI & PF returns respectively, otherwise, penalties shall be charged by the authority. Please search the Statutory Checklist and ensure its maintenance.

Thanks,
Hari Bains

Dear all,

Do you have any format for full and final settlement? Please advise me too.

Hiren Soni
Executive HR & Admin
Ashapura Minechem Ltd.

Hi Hirensoni,

Please find the attached full and final settlement format that I am following in my company. You may customize it according to your requirements...!!

Regards,
Vishwanath

Dear,

Please help clarify my doubt as below. If an employee serves a 17-day notice period and the company is paying him/her for 14 days (deducted 14 days for Notice Recovery and 3 days for LOP), should we deduct a proportionate amount of PF for only 14 days or for the full amount, considering it is fixed at a maximum of Rs. 780/- (basic+DA is more than Rs. 6500 even for 14 days)?

Please advise.

Bagi

Hi,

If the Basic Plus D.A. is working out to more than Rs. 6500.00 even for 14 days of service, you have to deduct PF on Rs. 6500.00 only.

Mohan Rao
Manager HR

Dear Sir,

That means we need to deduct Rs. 780 for 14 days, or Rs. 780/31*14 = Rs. 352. If we are deducting Rs. 780 for a month, we need to deduct a proportionate amount of PF for 14 days.

Baginesh

Hi Baginesh,

PF is to be deducted on the basic salary you pay to the employee for the 14 days. I understand the predicament. You may find the employee drawing Rs. 6500/- and more as the basic salary for 14 days. It is imperative that you deduct the maximum PF on the calculated basic salary.

You cannot decrease the PF amount if the basic is more than 6500. In that case, the PF is calculated as per your company's rules, which is 780/-. Therefore, you must deduct 780/- itself.

Dear Mr. Baginesh,

Please refer to your company's full and final settlement policy. Generally, PF is deducted on basic (basic + DA / VDA) earnings. If your company has a ceiling amount of Rs. 780/-, then deduct either Rs. 780/- or the PF % on the basic earning for the month, whichever is less.

Thank you.

Hi,

Full and Final settlement is the last step before providing a relieving certificate. Therefore, as a practice, it should be given on the last date of service. However, there is no law governing this issue. It is advisable to issue the letter on the last day of service.

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In case of any further queries, please feel free to revert.

Centre for Legal Studies, Kolkata
Email: cls.kolkata.edu@gmail.com

Dear Aryan,

The calculation is simple. You should deduct Rs. 780/- as a fixed amount for 14 days (calculation), whichever is lower.

Kind regards,

[Your Name]

If the company is not signing the PF form, what can we do? Can we file a complaint in the Consumer Court, or can we file a police complaint? Dear friends, please suggest.

Dear all,

I would like to inquire about the specific formula used for calculating EL leave in an employee's full final settlement.

Hi,

I served the proper notice period at my company, but it has been three months, and I have still not received my salary and Full and Final (F&F) settlement. When I call the company, they do not provide a proper response. What actions can I take?

Thank you.