Please Suggest Full & Final Settlement - XLS Download

Dear All,

Please suggest me if employee’s served notice period and Proper Hand Over taken, than how much company should take time for Full & Final Settlement.


Any act. Or any processor for it.


Thanks,
Regards,
J.N.Modi

Dear Jaynarayan,

If your company's HR Policies are made properly, then there is no reason to delay. If the person submits his resignation and serves the complete notice period, then you have to issue the clearance before 3 days and make all the payment dues on the last working day. You can confirm from other branches, and even, if required, the entire company about any dues against the staff concerned. Regarding the Disciplinary/Administrative action, you can get confirmation from the Admin Department before relieving the person.

In case of retirement, you can stop his PF deduction before 3 months of retirement/superannuation, and you can submit Form 10C and Form 19 on his last working day to the PF Office. Within one or two months, his pension will also be affected.

In case of termination or resignation without the full notice period, you can take an undertaking from the terminated/resigned staff that "As the resignee/terminated staff is leaving the service before completing all the clearance formalities/procedures, the settlement may take longer than the normal case. In case of a delay in settlement for more than 6 months, the concerned should not approach any court of law to get his dues settled."

Hope I have cleared your doubt. In case of any further queries, please revert back.

Dear Mr. S. Bhakar & Ravibhushan,

Thank you for the immediate reply.

Sir,

My last company has repeatedly informed me that your settlement has been under process for the last 20 days. This includes One Month Salary, Bonus, and Leave encashment.

Kindly advise me on what legal action I should take.

Thanks,
Regards,
J.N. Modi

Dear Mr. Jaynarayan Modi,

Never think of taking any drastic action against your old employer. Please contact them politely and try to get cleared from them. All the best.

Dear Jayanarayan Modi,

I suggest that you take a few necessary precautionary measures in the future to avoid such panicking situations. It's always better for anybody to document the final settlement communication through email or written communication, rather than oral communication. This way, you can legally claim your rights if the issue is not sorted out within the given timeline.

I want to know what the rule is regarding giving the weekly off on salary days. If an employee joins the company on Saturday, will they be given Sunday off or not? Please explain this question.

Dear All,

I too have the same doubt. Kindly clarify for me, if we do not receive our F&F, should we file a lawsuit against the company or not? Does the law specify any timeline for this?

I am looking forward to your kind suggestions.

Thank you.

Dear Vijay,

Once the employee joins the organization, they are eligible to receive all benefits. If they joined on Saturday, they are eligible to take Sunday off, and their service will start from Saturday itself.

Dear friend,

The employer is bound to settle an employee's account upon cessation of his employment with the organization. This is a statutory obligation on the employer. Settlement shall be for the following and their respective Acts:

- Earned leave: Factories Act / Shops and Establishment Act.
- Unpaid salaries: Payment of Wages Act.
- Gratuity: Payment of Gratuity Act.
- Bonus: Payment of Bonus Act.
- Notice Pay: As per the terms and conditions / policy of the company.

The time limit varies from organization to organization, but it shall be within a reasonable time. The attached is the format for final settlement. This can be used in case you need it.

Regards,

YAGNIAH K
Manager - HR

Dear Mr. Bhaskar,

I have a query regarding F&F payment. Is there any standard rule set for this payment? Like from the last day of working, how much time is set to make the payment?

Another query is - is it technically right if the salary is being paid first and then the others like leave encashment, gratuity if applicable, afterwards?

Regards,
Gargi Mitra

Dear R.N.KHOLA SIR,

Please provide me with the latest notification regarding fees under the Punjab Shop and Commercial Act (Haryana) and the status on Sunday opening. I hope you would have this information.

Thank you,
Kuldeep Sharma
Advocate

Dear Gargi Mitra,

The Full and Final Settlement Payment should be made within a reasonable time. The meaning of the term "reasonable time" varies from time to time, company to company, and place to place.

Yes, the company can make the regular payment initially during the regular payday (for which they can obtain a pre-receipted certificate). Furthermore, they can calculate the Notice Pay, Gratuity, Leave Encashment, Retrenchment compensation, or Superannuation Fund, etc., within a reasonable time period. Additionally, before November 30th of the next financial year, they can settle the Bonus payment.

I hope I have clarified your doubt. In case you have any other doubts, you can seek assistance from our learned members. All the best.