What is F & F settlement?

Posted on 09th Jul 2018 | 1225 views

4 avg. rating (80% score) - 1 votes

F&F settlement or Full and Final settlement is a procedure that is required to be followed by the employer at the time of employees resignation or last working day. FnF settlement systems include recovery of leave encashment, pending dues and notice pay so that the final settlement slip is generated. FnF is based on the guidelines, terms, and conditions at the time of appointment. A condition is set for the FnF settlement that the final clearance will be done between 30 to 45 days from the employees last working day.

F&F settlement process

F&F settlement process:

F&F settlement process is done by the employer when an employee quits the job and this FnF is calculated by checking the all the salary dues, leave dues and the employee receives a sum after all the deductions are made. While calculating the FnF amount different aspects are taken into consideration such as

Unpaid salary - salary for the working days between resignation and last working day along with DA and TA.

Deductions - include PF due, profession tax if applicable, income tax and compensation for not working during the notice period.

Bonus & non-availed leaves – payment of non-availed leaves ( privilege leaves) as per the Factories Act 1948 section 79 (11).

Pension - if eligible for pension services after retirement.

Gratuity - a lump sum of money is given to the employee by an employer for his/her valuable services to the organization ( gratuity is only applicable to employees who completed 5 years of service in the organization).

The F&F process is done by submitting no due certificate from the organization and clearance form signed by the employee to the HR department. Advances took before the salary can be adjusted during the F&Fsettlement process. An employee must complete the notice period in terms of the contract to avail F&F settlement.

0 Comments on What is F & F settlement?

Comment as a guest:


What is Appointment letter Format?

26th Jun 2018

Top 10 facts why you need a cover letter?

08th Jun 2018

Are you looking for a job in Event Management?

28th May 2018

Pharmaceutical job opportunities on rise in Gulf

23rd May 2018

MNC Vs Startup: Are you Confused to Choose between?

09th Aug 2017

Perspectives of Unemployment in India

01st Jul 2013

Have your Say!

View All

How consistently does your organization reward you for good work?

Very difficult

Reasonably consistently

Not at all consistently


Press Corner

View All

All rights reserved © 2020 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status