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How to fill out full and final settlement
How to fill out full and final settlement
01
To fill out a full and final settlement, follow these steps:
02
Gather all relevant information and documentation such as employment agreement, payslips, and any other relevant records.
03
Determine the final amount due to the employee, including salary, unpaid leaves, and any other pending dues.
04
Calculate any additional benefits or compensations the employee is entitled to, such as gratuity, unused leave days, or performance bonuses.
05
Deduct any outstanding debts, loans, or liabilities of the employee, as per the agreement or company policy.
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Prepare a comprehensive settlement statement detailing all the calculations, deductions, and final payable amount.
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Arrange a meeting with the employee to discuss and negotiate the settlement terms if required.
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Once both parties agree on the settlement terms, get it documented and signed by the employee and concerned authorities.
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Make the payment to the employee as agreed upon, either by direct deposit, cheque, or any other mutually convenient method.
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Retain copies of all relevant documents and maintain records for future reference or legal purposes.
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Notify the relevant departments, such as HR, finance, and payroll, about the completion of the full and final settlement process.
Who needs full and final settlement?
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Full and final settlement is typically needed by:
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- Employers when an employee is leaving the organization permanently, either due to resignation, retirement, termination, or completion of contract.
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- Employees who want to ensure that all their entitlements, dues, and any pending payments are settled before leaving the organization.
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- Organizations to ensure proper closure and financial settlement with departing employees, maintaining transparency and adhering to legal obligations.
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