Legal Concerns of Using NEFT for Full and Final Settlements – Is It Safe?

Legal Impact of NEFT for Full and Final Settlement

Please confirm if there is any legal impact of paying the Full and Final (F & F) settlement amount directly by crediting it through NEFT into the bank account of the resigned employee. The settlement letter will be issued via HRMS.

Regards

Is there any problem in issuing a cheque to that effect instead of an NEFT transfer. If you issue a cheque, you can have proof immediately in your hand, and you can keep a copy of the cheque (if required) along with a letter issued by the HR Team in your company's personal file of the resigned employee. If it is an NEFT transfer, you have to get the complete printout of the day's transactions and keep the record in a separate file.

With warm regards,

S. Bhaskar
9099024667

Transfer through NEFT is nothing but issuing an e-cheque. It is a valid transaction. You can have the printout of the transaction details.

Regards,
R. Ponraj