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.
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.
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.
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 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 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.
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.
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 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.
Cloud-based central database enforces data integrity, ensuring efficient operations and timely FnF disbursal
Simple and easy asset recovery as the employee details are linked with uniquely numbered assets in the system
Remain up to date with an intuitive dashboard that provides an overview of the employees' progress in the exit process
Automated calculations and internal cross verifications ensure that there are no errors in the FnF amount being disbursed
Simple exit surveys help the employee provide valuable feedback and honest opinion on their company for future improvement
The HR department can easily track the process with automated status updates for each employee, avoiding any delays
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.
Gratuity will be included as a part of the settlement in cases where the employee is eligible for the same.
Generally, it is paid via the same medium the employer provides the salary to the employee.
In such cases, the employee can raise a complaint with the labour department.
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