How to Handle Full and Final Settlement for Departed Employees: A Step-by-Step Guide

Format for Full and Final Settlement for a Departed Employee

Dear [Employee's Name],

I hope this message finds you well. As you are no longer with the company, we have prepared your full and final settlement. Below are the details of the settlement:

1. Salary dues for the month of [Last Month Worked]
2. Any remaining unpaid reimbursements
3. Leave encashment, if applicable
4. Bonus or any other entitled benefits
5. Any deductions, if applicable

Please review the above information and let us know if you have any questions or require further clarification. The settlement amount will be credited to your bank account on [Payment Date].

We appreciate your contributions during your time with us and wish you the best in your future endeavors.

Thank you.

Best regards
[HR Department]

Hi Yogesh,

Find enclosed one of the sample formats of Full & Final Settlement. I hope it would help you to prepare the same at your end.

Regards,
Amit Seth.

Hi, my name is Birendra Kumar Patro. Previously, I worked for ICICI Direct for 2 months as a relationship manager. However, due to a documentation problem, I was terminated from the company without receiving one month's salary. I received the termination letter on August 5, 2009. I spoke with the HR, and she informed me that I would receive the pending salary 45 days after the termination date.

Thanks for your help; it really made a difference. Suddenly, I was asked to prepare the full and final settlement for the office. However, with your assistance, I managed to complete it in just a minute. Thanks again.

I want to know if an employee leaves the company within 15 days of joining, how can HR deduct an amount during the full and final settlement.