Understanding the FnF Process: Can an Employee Get Their Final Settlement Before Moving?

Good Afternoon, kindly help me to understand the FnF process in the below-mentioned case. In a small private firm, an employee who worked for around 2 years has discussed with his boss that he is moving to Mumbai for some reason (explained to the employer). For example, at the end of June, he verbally discussed and mailed the resignation in July.

1. Can the employer hold his June's salary (saying they will give it at the time of FnF)?
2. Can he claim his FnF to be cleared before he is moving to Mumbai (which is in August or soon after his notice period is completed)?

According to HR law, what would you suggest?

Regards, Sheetal

Hello there,

Yes, F&F can only be done after the employee's notice period is completed with the help of an NOC from the various departments. The company has the right to hold the salary and provide a cheque or bank transfer only after the F&F process is completed. Most companies can complete the F&F within 45 days as per company policy.

Ask them to provide a conditional relieving letter and NOC clearance to join a new company. Also, take care of your PF and ESI details, either by transferring or withdrawing them.

Dear Friend,

The salary cannot be put on hold simply because an employee has resigned.

Warm Regards,
Bharat Gera
HR Consultant