What is full and final settlement: Every employee has a right to get all the dues after the date of resignation. As per the full and final settlement policy, every employer needs to pay all the dues to the employee when they resign to their job or when they have terminated by the employer. The time taken to complete full and final settlement lies in between 30-60 days.
The employee has to start the full and final settlement process by submitting no due certificate to the employer, once employee clears all the dues which are like salary advances or loans, company properties etc then the employer will start the full and final settlement process.
What Employees will Get After Full & Final Settlement
- All the pending salaries or wages and allowances such as leave allowances ( CLs, ELs) and traveling allowances etc).
- If employees complete 5 yrs of continuous service then they will get gratuity from their employer.
- Unpaid bonus amount.
- Assisting the employees in claiming provident fund and pension.
As I said earlier in order to get full and final settlement dues the first employee need to clear all the dues with the employer, for that employee needs to take clearance signature from each and every department of the organization on no due certificate. (Employee can get no due certificate from the employer). Once employee handover no due certificate format to the employee then the employer will initiate the full and settlement process.
Laws Which are Related to Employee Full & Final Settlement
In case if any employer fails to provide full and settlement benefits to the employees then they are punishable under employment-related acts such as payment of wages act 1936, industrial employment standing orders act 1946. Employees need to file a case on employer through a good lawyer when they didn’t get full and settlement from their employer.
In many companies, the employer will send a copy of full and settlement statement to the employee to check it. Once employee checks and approves then the employer will clear all the dues. Sometimes employee need to remind the employer by sending a full and final settlement to HR. Here is a sample reminder letter for full and settlement to the employer, which will help you to remind your employer regarding your full and settlement procedure.
Reminder Letter For Full and Final Settlement
Sub: Request for full and final settlement
This is with reference to my resignation dated on _______ still my full and final settlement was not completed. I have already submitted no due certificate format and there were no dues from my side.
Here I request you to please send me the statement copy of the full and final settlement so that I can check it and hope for a quick response from your side.