Smooth Full and Final Settlement

Quick and Precise Full and Final Settlement

MIS Reports

What is the Full and Final Settlement process?

Full and Final Settlement or the FnF process refers to the final payroll-related formalities associated with an employee’s resignation.  The HR department ensures that the employee’s last working days in a month are calculated accurately, and correct payment is provided for their services until their last working day.


The Full and Final settlement process helps the employee exit the company smoothly. There are various formalities associated with a full and final settlement (FnF), such as exit interviews, feedback surveys, payment disbursal, dues retrieval and asset recovery. HR needs to ensure that all these formalities are conducted successfully before the employee leaves the organization.

Constituents of FnF Settlement

There are several constituents of the full and final settlement, such as leave encashment, payment of unpaid salaries, bonuses, gratuity, pension and calculating the deductibles. Salaries for non-availed leaves is encashed and added to the full and final settlement. Unpaid salary refers to the wages from the start of the notice period to the employee’s last working day.


Bonuses include rewards provided by the company for any reason pre-defined by the company, such as good performance. Gratuity is the amount paid by the company and the end of employment to recognize an employee’s loyalty to the organization.

Pension is the fixed income provided to employees who have completed a minimum of 10 years at an organization. It is a part of their EPF. Deductions such as professional tax, income tax, provident fund, etc., are deducted before arriving at the final full and final payment amount.
Constituents of FnF Settlement
Full and Final Calculation

Full and Final Calculation

The full and final settlement can be performed only after calculating the full final settlement amount. It is calculated by adding the various benefits that the employee is eligible to receive and removing the necessary deductions.


Once it is calculated, the employee receives it in the same mode they used to receive their salary. Pocket HRMS ensures that this process is error-free, quick and efficient by automating the calculation of all these amounts.

Additionally, it helps quickly disbursing the amount since it can process the full and final settlement (FnF) in batches if required.

Automate F&F Calculations with Pocket HRMS

Set Separation Types with Reasons

Pocket HRMS provides various separation types with reasons for the employee separation process. Based on these types and reasons, HR can also set other parameters such as the commencement of the FnF process and disabling of the ESS portal for these employees.


Pocket HRMS also offers HR complete control over the FnF process while maintaining statutory compliance. Our software can be tweaked as per your company’s existing employee exit process instead of the other way round.
Automate the Full and Final Settlement
Consolidated FnF Dashboard

Consolidated FnF Dashboard

Pocket HRMS comes with a consolidated FnF dashboard to help HR accurately process individual employees’ FnF settlements. This dashboard provides an in-depth overview of the employee’s details, and hence, HR can enter the correct values as required.


The system enquires the HR to select the employee category, the employee name, the month and the year the FnF is being processed and any remarks. The system automatically fills the rest of the data, making the process much easier.

Once the relevant fields are filled, our system also allows processing FnF with income tax by considering the monthly input. Additionally, while entering the details, the system also provides a tabular overview of the employee’s monthly component values to help HR view their details on the same page without switching pages.

Automate Statutory Compliances

The statutory deductions are a part of the full final settlement calculation as it applies to the salary. Moreover, the FnF amount should also be calculated considering the statutory compliances.


Having a robust updated system such as Pocket HRMS ensures that you always stay atop these compliances as they can be automated by the system. Moreover, any changes in the laws are updated by our team as and when required to continue adherence to the legislation.
Automate Statutory Compliances
Error free Calculations

Customizable Mandatory Approvals

Pocket HRMS provides the option for customizing the mandatory approvals to greenlight the full and final settlement process. We understand that every company is different, and hence, we have developed our software to consider these differences while processing the full and final settlement.


You can set the necessary approvals as mandated by your company policies and ensure that these approvals are processed on time to provide timely FnF payments to the employees. The software also comes with user access control which limits the users who can customize the mandatory approvals and hence, ensure that it is not changed accidentally.

Easy Asset Recovery

Our full and final settlement module also provides handy options for asset recovery. You can create as many types of assets as you want and assign individual assets to different employees with unique tags that would help their easy recovery once the employee decides to leave the company.


Pocket HRMS even provides the option to upload the asset’s image and invoice details into the system to ensure that their condition can be updated with the help of images. You may also enter custom remarks against each asset to ensure that the details remain secure in the database. All of these features factor in easy asset recovery.
Recover Assets Easily
Finalize Crucial Recoverables

Custom Reports Generation

Pocket HRMS provides a smart custom report option that helps you choose individual columns required for your reporting. We have also provided an option to name and save your favourite custom report format so that it can save for future usage.


This feature helps generate custom reports in a matter of a few clicks and makes the process of report generation quick and easy. With the help of these custom reports, you can gain valuable insights into your employee resignation pattern and understand the reason behind employee turnover.

This data would help you take the necessary steps to improve employee retention rate and engagement with your company. It also provides an easy option for HR to visualize the data for the management to persuade them to greenlight any changes based on the data.

Intelligently calculates F&F payables when an employee leaves a company.

Check out all the core features of Pocket HRMS.

Benefits of Full and Final Settlement

pocket hrms Save Time _ Cost

Timely FnF Disbursal

Cloud-based central database enforces data integrity, ensuring efficient operations and timely FnF disbursal

pocket hrms Make HR Efficient

Simple Asset Recovery

Simple and easy asset recovery as the employee details are linked with uniquely numbered assets in the system

pocket hrms Error-free Payroll

Dashboard Overview

Remain up to date with an intuitive dashboard that provides an overview of the employees' progress in the exit process

pocket hrms Accurate Attendance

Error Avoidance

Automated calculations and internal cross verifications ensure that there are no errors in the FnF amount being disbursed

pocket hrms Engaging Experience

Smooth Exit Surveys

Simple exit surveys help the employee provide valuable feedback and honest opinion on their company for future improvement

pocket hrms High Portability

Easy FnF Tracking

The HR department can easily track the process with automated status updates for each employee, avoiding any delays

Frequently Asked Questions

There is no fixed period when the final amount is credited into the employee’s account. However, most companies provide it within 10-15 days from the final salary credit after the employee’s last working day.


The employee can also request their employer to expedite the process under appropriate circumstances, and the employer needs to abide by their request in such a scenario.

Gratuity will be included as a part of the settlement in cases where the employee is eligible for the same.


The rules governing the inclusion of gratuity under the full and final settlement is dictated by the Payment of Gratuity Act, 1972.

Generally, it is paid via the same medium the employer provides the salary to the employee.


However, some companies might prefer giving cheques even if the employee receives their salary via wire transfers.

In such cases, the employee can raise a complaint with the labour department.


In cases where the company is found to unnaturally delay the payment, they might face a lawsuit by the labour department on behalf of the employee.

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