Calculating Full and Final Settlement: What Happens When Notice Period Isn't Served?

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Calculating Full and Final Settlement When Notice Period Is Not Served

If an employee is not serving their notice period, how should the full and final settlement be calculated?
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Full and Final Settlement in Case of Resignation

Full and final settlement in case of resignation can comprise unpaid salary, cash value of earned leave at credit, gratuity, proportionate bonus, and similar components depending on the length of service of the employee in the organization.

If the resignation is accepted without actually serving the notice period, the exiting employee can be permitted to buy out the notice period before their relief. If they are not in a position to pay the amount, it can be adjusted against their dues except statutory gratuity in the full and final settlement. If the total amount of full and final payable happens to be less than that of the notice salary, the employee may be asked to remit the amount before their relief. In exceptional cases, the management may consider waiving the notice salary.
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