Hi Luqman,
Where are you located? I don't think any serious elaborate policy would be necessary for Full & Final settlement. As you are aware F&F settlement is required when an employee leaves/severance with your estt. on a/c of resignation, retirement, retrenchment/ relieved, in-capacity due to physical/mental disabilities, death, closure of unit and so on.
F&F generally are relevant to Last month salary, leave encashment, gratuity, residual bonus/incentives, EPF & EPS welfare funds/society memberships, vacation of quarters, compensation, recovery of fines, if any etc.
What are required to be done are (among other things if any I would have left over) -
- formulating steps from the time office onwards & updating service records, (use a well thought out check list),
- organise flow of documents like service data, claim forms, clearance certificates from the respective departments, clearance of loans, retrieving co. assets, records, handing over-taking over charge on relieving etc.,
- clearance of pending disciplinary/departmental enquiry, if any,
- processing them in the manner required/obtaining necessary approvals,
- setting time line statutorily required for settlement and strictly meeting the target dates,
- mode of payment and ensuring availability of necessary funds.
- In the case of settlement in respect of a deceased employee either while in service or thereafter, there are certain aspects like ensuring filing of 'Nomination' of legal heir', obtaining NOCs from the family members, clearing legal cases/hurdles pending at various forums etc.
- Issue of relieving letter/service certificate and so on.
If all these are placed in a format, with target dates and get the approval of the HOO then it becomes your policy and can be circulated to all concerned for adherence.