Full and Final Settlement
Full and Final Settlement
Close out exiting employees cleanly — calculate final dues, recover advances, and produce F&F statements in one workflow.
Before generating the salary payslip, if any employee is exiting the organization (due to resignation, retirement, or termination), the payroll administrator can initiate a Full & Final (F&F) Settlement.
This ensures that all pending earnings, deductions, and adjustments are settled correctly and included in the employee’s final payslip.
Steps to Process Full & Final Settlement
Initiate Settlement
Navigate to Payroll → Salary Payslip → Full and Final Settlement.
Click on Initiate Settlement button
A window will appear where you can select the specific employee record. Click Edit to make any necessary updates, or proceed with the system-provided details as they are.
Select the Employee
Choose the employee for whom the settlement needs to be processed.
Provide Necessary Details
Enter the required settlement details, including:Outstanding payments (e.g., leave encashment, bonus,etc). And Deductions/Adjustments (e.g., notice period recovery, loan balance, advances, statutory deductions)
System Calculation
The system will automatically calculate the total settlement amount by factoring in: Earnings, Deductions and Adjustments.
The net settlement payable( or recoverable) will be displayed.
Once processed, the final payslip will be generated.
Fig: F&F- Initiate Settlement
Fig: F&F- Applicable Earnings & Deductions
Fig: F&F- Leave Encashment
Fig: F&F- Notice Period Recovery
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