Whenever an employee is going to leave an organization which may be due to the resignation of the employee or termination by the employer etc… then the employer has to do full and final settlement to that employee.
The main aim of the full and final settlement policy is to pay all the balance payments to the employees including retirement benefits, bonus, gratuity, leave encashment, incentives, etc.
The rules of full and final settlements are the same in major cases, but the process may have slight variance. Here you can find the full and final settlement policy and full & final settlement rules.
Full And Final Settlement Policy | Full And Final Settlement Rules
The full and final settlement will initiate when the employer accepts employee willingness to leave the job. And the employee will also be responsible to for smooth full and final settlement policy, here are some important full and final settlement rules.
1. Employee Should Give Notice Period
In order to have a smooth full and final settlement process employee needs to give a proper notice period to the employer, and in this notice period he needs to transfer all his responsibilities to the new joiner and he needs to train the new employee.
The notice period will vary from one organization to another organization, in the majority of cases, the notice period will be 30 days. Giving notice period is the basic responsibility of the employee to get their full and final settlement.
2. Handover All The Company Properties
The second step in full and final settlement process is take an F&F form your HR department and submit all the company properties like laptops, mobiles, vehicles etc and take the acknowledgement signature on full and final settlement form and submit it to your HR department, to confirm that you have handed over all the company properties.
3. Salary, Leave Encashment & Retirement Benefits
Once your employer finds you have handed over all the company properties and if you don’t have any dues then they will do your salary calculation along with your leave encashment and retirement benefits like a gratuity. Once the salary calculation was done then they send a mail to you (in some cases they may not send).
Once you find everything is correct then send a reply mail to them. Once the employer gets the confirmation mail from you then they will credit your salary on your regular salary disbursement date or after the salary disbursement date.