Full And Final Settlement Maximum Time Limit

Hello everybody
could you guys please tell me that what will be the maximum time for clearing F&F. and suppose if an employee gave resignation on 1May 2011 and also mentioned that he will serve 2 months notice also to the company. when can we release his salary for April month. And when can we do his F&F after completing his two months with the company.

I want to mention it in our policy.
Thanks
NK

Hi,
If the FnF is processed in the Head office which is located other than your current location,then it should be within 30-45 days after the last working day, and if in the same office then within 10 days after his last working day provided in both the cases he has served the notice period.
However, this may vary from company to company.

Dear nivedita
Thanks for your response but you have not told me that when can we release that months salary in which month he served next 2 months notice period. Suppose i release his salary and he will not come back on work. Please help me with this also.
Regards:
NK

when he has served notice period, then why hold the month salary, you need to intelligdently check with accounts any loan, advance, imprest, dues... If not much then why hold salary when he / she has served notice period.....

If he is required to serve 2 months notice period n if he resigns on 1st May his last working day will be 30th June..His april salary should be released as the regular salary whereas after his resignation the salary for the month of May n June will not be credited to his account..he will get this salary in FNF only..the employee should not leave the org after resigning in that case u have to keep his relieving and exp letter with u and give with the FNF cheque after 30 -45 days...
If the employee leaves the org after collecting april's salary without serving the notice period then you can get a FnF ready with the recovery(two months salary plus any other deductions if applicable) which has to be sent to his residential address.

Normal Situation

Employee resigns on 1st May, gives two months' notice and gets relieved on 30th June, you must settle within two days from the date of relieving and gratuity can be settled within 30 days from the date of relieving

Abnormal situation 1

Employee gives his paper on 1st May and also gives two months' notice. You might have credited his salary to his account or you might have made the payment before he gives his resignation,He does not come to work from the next day onwards. You obviously can not do much about making him to come as he is not bothered about his certificates.

A) The employee might have Earned leave and gratuity to his credit. In such circumstances, send a letter to him after a week stating that he has given resignation and is not serving Notice Period as indicated. Mention that if he does not report for work immediately, his dues will be adjusted against Notice Period. Send one more letter if he does not respond Close his accounts on 30th June stating that he has not served Notice Period and hence Notice Pay is being adjusted. Also indicate that he needs to submit no due certificate before getting bhis payment and advise him to come and collect the payment from Accounts Dept after submission of No Due certficate

B) Employee may not have any payment due to him from the company.You still should issue a letter but indicate that he needs to make a payment againt notice period Depending on the position and depending on the amount involved you can decide on filing a civil case against him,

C) Employee fulfills part of the notice period and then absconds, mention the shortfall of Notice Period

D) PF needs to be transferred as and when you recive Form 13 You do not have remedy to stop transfer against Notice Period Some organisation delay the process by not submitting the froms immediately Nowadays, employye can directly approach the PF Dept and get transfer effected

Sivasankaran

can any one help to know , what steps can be taken if employeer is not clearing F& F without serving notice and bounding to serve 2 month notice and employee is not in the condition to erve.

Hello Frends
Plz Help me out for this sitiuation
If due to some condition employee does nt submit information letter and employer dont agree
for F&F settelment so wt sud b done
Thanks
Jay Rawat

LEGALLY REASONABLE NOTICE PERIOD NEED TO BE GIVEN iF IT IS SPECIFIED AS tWO MONTHS, EMPLOYEE HAS TO SERVE
If he does not serve, employer can adjust the notice period payment and settle the balance
Legally both can exercise the option of giving notice pay or notice. Employee legally can enclose a cheque alongwith his letter of resignation stating that he does not want to serve the notice period and demand releiving with immediate effect
Similarly employer in respect of Managerial staff can enclose a cheque for the Notice pay and relieve him from services
While the employers side exercise their right of terminating an employee without notice, unfortunately, employers do not accept employees rights I have come across instances where the employee has stipulated the date of relieveing and also demanded the management to give it in writing the amount he has to pay towards the shortfall of notice. Under these circumstances, employer has no other option but to releive him.

Hi All,
Earlier we used to take 15-30 days to settle and now to make it more employee friendly and to keep the employees who are leaving the organisation in the same state of motivation level in which they had worked for us, we have aligned the process and issuing the full and final settlement cheque on the last day of their work.
Just HR need to sit and finalize the process with Finance.
Have got many positive reply from them.