Full Final Settlement

Full and final settlement is the process of concluding an employee's account with their employer when they leave the organization, either through resignation, retirement, termination, or end of contract. This comprehensive process ensures that all dues and obligations are settled.

The settlement process also involves obtaining clearances from various departments, such as HR, finance, IT, and administration, to ensure that the employee has returned company property like laptops, ID cards, and other assets.

After all calculations and clearances, a final settlement statement is prepared, detailing all payments and deductions. The net amount payable or receivable is then processed, and the final settlement amount is disbursed to the employee.

This process ensures a smooth transition for the departing employee and closes all financial and legal obligations between the employee and employer.

The settlement process begins with the employee submitting their resignation or receiving a termination notice. This triggers the calculation of all pending payments, which typically includes: