Handling Ex-Employee F&F Cheques: Can We Deposit It or Must They Collect in Person?

Hi, can we deposit an ex-employee's F&F cheque, or is it mandatory for them to come and collect it? Also, is it alright to receive the acceptance of the cheque receipt by mail?

Thanks & Regards,
Vrushali

If the F&F does not include any gratuity amount, then you can credit the amount to his bank account after taking his consent. There is no need to get a confirmation mail from him. It is just like crediting his routine salary or expenses.

At the same time, the gratuity amount should be paid by cheque, collecting his signature in Form L to avoid future complications. Moreover, it is fine if you do not make a single cheque for unpaid salary, leave encashment, and gratuity together.

Dear Vrushali,

Details/statement of full and final settlement

You may obtain the signature below the F&F in the following format of Advance Stamped Receipt:

Advance Stamped Receipt

Received the sum of Rs. 1,12,134/- (Rupees One Lac Twelve Thousand One Hundred and Thirty-Four only) from ABC Company Ltd., Mini Tower, 4th floor, 3rd Lane, Lal Rasta, Kala Bazar – 123456 by cheque no. 345678 dated 06.04.2024, drawn on Lena Bank, Adrushya Branch, towards the full and final settlement of my account. In view of the above settlement, I hereby confirm that I have no further claims of whatsoever nature against the company, except the bonus for the period from 01.04.2023 to 31.03.2024 or (the actual date of leaving).

Place: Signature on Rupee One Revenue stamp

Date: Employee Name:

Regards,

Suresh

After the computation of the eligible gratuity amount, a notice in Form No. F (and in Form R if an application for gratuity is made to the Controlling Authority) shall be issued by the employer to the employee. This notice will notify the amount payable and specify that it will be disbursed either by cheque or DD/NEFT-RTGS, with the signature of the claimant being obtained.