Navigating Full and Final Settlement: What Steps and Documents Are Needed for Ex-Employees?

Dear All,

Kindly guide me with the procedure for Full and Final Settlement for an ex-employee. Like what is the time period, what components are considered, and what documents are required.

Regards,
Gayatri

Hi Gayatri,

If you have the resignation letter of your employee on your desk, first of all, you have to circulate the NOC (No Objection Certificate to relieve the employee) and obtain signatures from all department heads in your organization. After receiving the NOC, you need to prepare an Interoffice Memo addressed to the Account department to calculate the final settlement.

In the Interoffice Memo, you should mention the worked days for the running month, ELs up to the last working day, Overtime Hours, etc., based on your organization's benefits. If the person has submitted the resignation letter before one month, there is no need to deduct one month's notice period. Otherwise, you have to deduct one month's notice period as per the resigning person's resignation letter date, and an Exit interview needs to be conducted.

Another benefit for the ex-employee is a bonus - the individual is eligible for a bonus for their past worked days. Finally, regarding PF, the ex-employee can apply for PF claim 45 days after submitting the resignation letter.

Thank you.

The time taken depends on the organization. Some companies just don't believe in this. One such example is Sterling Holiday Resorts. I got part of my settlement after 8 years, and I am still after them.

The time taken depends on the organization. Some companies just don't believe in this. One such example is Sterling Holiday Resorts. I got part of my settlement after 8 years and I am still after them. In some cases, they just refused to issue a relieving letter.

Hi, can you just give me an example of what happens if a person resigns within the required notice period? How much salary will he/she receive, depending on the number of days worked? Please explain this process.

If an employee left their job on the 10th, in this condition, will we give 100% HRA for that month or only 10 days HRA? Please tell me.

Regards,
Akhil

Dear Gayatri,

Full and final settlement involves many things. Unless we know the whole facts, we cannot advise you properly.

Regards,
Deepak Miglani
Advocate
Phone: 9958086337 (Delhi), 09215514435/36 (Haryana)
For any queries: legalbuddy@gmail.com

Check out the office procedure, or else you can settle like the USA, but in the Indian context, I believe that we have not started yet. But still, we need to have time to settle the final payments/bills. The preferred duration is 3 months. Good luck.