Insights on Full and Final Settlement, Notice Period Deductions, and Employee Departure Procedures

Hi there,

I just wanted to inquire about whether a person who leaves the organization without serving the notice period is eligible for the full and final settlement or not. Could anyone suggest how they can obtain their relieving/experience letter?

Thank you,
Raghav

He/she is eligible for the full and final settlement, but deduct the notice period recoverable amount from that, according to your company policy (whether 2 months / 3 months of notice period).

Please let me know if you need any further clarification or assistance.

Hi,

An employee is eligible for Full and Final (F&F) settlement. What an organization can do is deduct the notice period amount and pay the balance to the employee. If the company needs to recover the amount, the same should be communicated to the employee, and the settlement can proceed.

F&F settlement should be completed as it will also be beneficial during audits.

Regards,
Jyoti

Employee is eligible for F&F settlement. The employer can deduct the notice period amount as per the appointment letter and pay/recover the balance amount to the employee.

It depends upon the company policy. For example, if an employee has worked from 1st April to 30th April, and on 1st May, he comes and says, "I have this reason, and I am leaving this organization," then you need to check his appointment letter to see how much notice period he requires to serve. For instance, if it's 15 days, then you can process his Full and Final settlement by paying him 15 days' salary. Usually, an employee receives their Full and Final settlement after 45 days of their relieving, though this timeline can vary from company to company.

Regards,
Tannu Bhatia
HRD

Dear all,

Please provide me with a letter draft for the full and final settlement in written format, not in xls format. Kindly do the needful.

Thank you.