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F&F Settlement Process Overview

The document outlines the steps for completing a full and final settlement for an employee leaving a company. The key steps include: 1) Receiving approved separation documents such as a resignation letter; 2) Having the employee obtain a no dues certificate from relevant departments; 3) Checking the employee's leave balance, gratuity eligibility, bonus, and salary due; 4) Preparing a full and final settlement sheet with this information for approval; and 5) Issuing payment to the employee after approval and providing a service certificate.

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mahesh2408
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703 views3 pages

F&F Settlement Process Overview

The document outlines the steps for completing a full and final settlement for an employee leaving a company. The key steps include: 1) Receiving approved separation documents such as a resignation letter; 2) Having the employee obtain a no dues certificate from relevant departments; 3) Checking the employee's leave balance, gratuity eligibility, bonus, and salary due; 4) Preparing a full and final settlement sheet with this information for approval; and 5) Issuing payment to the employee after approval and providing a service certificate.

Uploaded by

mahesh2408
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
  • Separation Processes: Describes the overall processes involved in employee separation, including resignation, termination, and other forms of separation.
  • Final Settlement and HR Procedures: Covers the detailed HR procedures for final settlements post-separation, focusing on clearance and financial settlements.
  • Payment and Clearance Procedures: Discusses the payment procedures, cheque issuance, and overall clearance steps after employment separation.

1) Receive duly approved Separation paper ( Resignation, retirement, Death, retrenchment

etc.)
2) Ask Employee to get signed No dues certificate from all concerned departments.
3) Check employees available EL or PL balance.
4) Check whether employee gratuity is payable or not.
5) Check Bonus payable to employee
6) Check employees salary due
7) Prepare full & final Sheet
8) Add in F&F Sheet: PL or EL amount, Gratuity Amount (Get Form of Gratuity Filled
either by employee or by his nominee if a case of death), Bonus Amount and also add
any other amount payable to employee.
9)Deduct from F&F sheet: Notice period salary if any and also check No Dues Certificate
if any deduction is there deduct it
10) After completion of Full & Final sheet get it approved from approving Authority.
11) after Approval Submit it to Account for payment with relevant documents.
I Hope this will help you & Kindly prepare it accordingly your company Separation Policy.

Following are the steps involved in F & F Settlement.

1. Separation can happen due to a variety of reasons:

a. Resignation

b. Termination

c. Death

d. Retrenchment

e. Superannuation etc..

Lets us assume the employee has resigned:

The steps would be as follows:

i. The Employee submits his resignation in writing.

j. The management issues an acceptance letter.

k. Along with the acceptance letter, the employee is given a Departmental Clearance Form. The
employee will
get clearance from all departments mentioned in the form and give it to HR.

l. The HR Deptt. will satisfy itself that the form is complete and filled in properly.

m. Then the HR will prepare the F & F statement for the employee.

n. The F & F Statement will be sent to the Accounts Department for necessary action at their
end.

o. Once the Accounts Department clears the statement, the HR will then prepare a final version
of the same

and request Accounts to prepare a cheque for the payable amount.

p. On the last day a farewll could be organized and a warm send off may be arranged for the
employee.

q. The cheque along with a Service Certificate may be handed over to the employee and the HR
in particular

should wish the employee very best in his/her future endeavours.

The steps for the full and Final Settlement would be as follows:

1. The Employee submits his resignation in writing.

2. The management issues an acceptance letter to employee for his resignation.

3. Along with the acceptance letter, Ask Employee to get signed No dues Certificate from all
concerned departments and give it to HR.

4. The HR Department will satisfy itself that the form is completed and filled in properly.

5. Check employee’s leaves available EL or PL balance.

6. Check whether employee gratuity is payable or not. (Get Form of Gratuity Filled either by
employee or by his nominee if a case of death),

7. Check Bonus payable to employee.

8. Check employee salary due.


9. Then the HR will prepare the F & F statement for the employee.

10. The F & F Statement will be sent to the Accounts Department for necessary action at their
end.

11. Once the Accounts Department clears the statement, the HR will then prepare a final version
of the same and request Accounts to prepare a cheque for the payable amount.

12. On the last day a farewell could be organized and a warm send off may be arranged for the
employee.

13. The cheque along with a Service Certificate may be handed over to the employee and the
HR in particular.

14. Should wish the employee very best in his/her future endeavors.

1) Receive duly approved Separation paper ( Resignation, retirement, Death, retrenchment etc.) 2) Ask Employee to get signed
get clearance from all departments mentioned in the form and give it to HR. l. The HR Deptt. will satisfy itself that the for
9. Then the HR will prepare the F & F statement for the employee. 10. The F & F Statement will be sent to the Accounts Depart

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