Full and Final Settlement

Full and Final Settlement

Full and Final Settlement commonly known as FnF process is done when an employee is leaving the organization. At this time, he/she has to get paid for the last working month + any additional earnings or deductions. The procedure has to be carried out by the employer after the employee resigns from their services.

Prerequisite

• Renewal policy should be configured
• Retirement policy should be configured
• Resignation policy should be configured
• Termination policy should be configured

Role

Finance Admin

Path

No Dues » Employee

Inputs Needed

• Organizations Resignation Policy.
• Department wise, post wise resignation policy.

Terminology Used

• FnF : Full and Final Settlement
• No Dues : Clearance to be obtained from each department for no dues on either employee or employer's side.

Functionality

• Full and Final Settlement commonly known as FnF process is done when an employee resigns from their services and the resignation needs to be approved from the reporting authorities.
• Depending upon how the Resignation Policy is configured, the employee will have to obtain No-Dues from defined authorities
• Full and final settlement will happen from the Finance department.
  • The settlement will include Leave en-cashment
  • Adjustment of any Employee Expense/Advance
  • Any settlement from other departments like library, stock, leave and guest house etc to be done in the finance department
  • Any other settlement claim from the Employee or Organization
• Once the settlement agreement is done, the Finance Department will notify the HR Department to Process the Relieving Letter and Experience certificate
• The HR Department then can handover the Relieving Letter and Experience certificate

Step by Step

Full and Final Settlement

Fine Deduction