Full and Final Settlement (F&F) in HR: Process, Components, Calculation & Checklist

Introduction

When an employee leaves an organisation, completing the exit formalities is only one part of the process. HR and payroll also need to make sure that all eligible payments and applicable deductions are properly reviewed before the employee’s financial dues with the organisation are settled.

This is where Full and Final Settlement (F&F) comes in.

Full and Final Settlement is the process of calculating and settling the amounts payable to an employee when their employment ends. Depending on the employee’s circumstances and applicable terms, it may involve salary for the period worked, eligible leave encashment, reimbursements, incentives, gratuity where applicable, and other outstanding dues, along with permitted deductions or recoveries.

Although F&F may sound like a routine payroll activity, even a small error in salary, leave balance, benefits, or deductions can create confusion and lead to disputes. That is why HR professionals need to understand not only what F&F includes, but also how the settlement is reviewed, calculated, documented, and closed.

In this guide, we will explain the Full and Final Settlement process in simple terms, including its components, calculation method, practical example, deductions, payment timelines, documents, HR checklist, and common mistakes to avoid.

Key Takeaways

- F&F settlement is the process of calculating and closing an employee’s outstanding financial dues when their employment ends.

- It may include salary payable, eligible leave encashment, incentives, reimbursements, gratuity where applicable, and other payable amounts.

- Applicable and authorised deductions or recoveries may be adjusted from the settlement amount.

- Not every employee will receive every F&F component. Eligibility depends on applicable law, employment terms, company policy, and the nature of the payment.

- HR should verify the employee’s last working day, attendance, salary, leave balance, benefits, recoveries, and other pending dues before finalising the settlement.

- F&F should be calculated carefully because errors can lead to employee disputes and payroll corrections.

- The applicable legal timeline should be checked for the specific payment involved rather than assuming that every component of F&F has the same statutory deadline.

What Is Full and Final Settlement (F&F)?
When Is Full and Final Settlement Done?
What Does F&F Settlement Include?
Full and Final Settlement Process: Step by Step
How Is F&F Calculated?
F&F Calculation Example
What Deductions Can Be Made in F&F?
F&F Payment Timeline in India
Documents Related to F&F Settlement
F&F vs Salary: What Is the Difference?
F&F Settlement Checklist for HR
Common F&F Mistakes HR Should Avoid
Frequently Asked Questions About F&F
Conclusion

What Is Full and Final Settlement (F&F)?

Full and Final Settlement (F&F) is the process an organisation follows to calculate and settle the financial dues of an employee when their employment comes to an end.

It involves reviewing the employee’s earnings, eligible benefits, pending payments, and applicable deductions up to the date of separation. The purpose is to determine what amount is payable to the employee and what authorised amounts, if any, need to be recovered or adjusted.

Depending on the employee’s circumstances, employment terms, company policy, and applicable laws, an F&F settlement may include items such as salary payable, eligible leave encashment, reimbursements, incentives or other variable payments, gratuity where applicable, and other outstanding dues.

A properly prepared F&F statement helps both the employee and the organisation understand how the final amount has been arrived at and provides a clear record of the settlement.

When Is Full and Final Settlement Done?

Full and Final Settlement is generally processed when an employee’s employment with the organisation comes to an end. The settlement process may be prepared before the employee’s last working day, with the final calculation completed after the relevant separation details are confirmed. and HR payroll have the information needed to calculate the employee’s final dues.

An employee may leave an organisation for different reasons, such as resignation, retirement, termination, dismissal, retrenchment, or other forms of separation. The exact F&F process can vary depending on the reason for separation and the terms applicable to the employee.

When Does HR Start the F&F Process?

HR can begin preparing the settlement before the last working day by collecting and verifying relevant information such as the employee’s attendance, leave balance, salary details, pending reimbursements, benefits, company assets, and applicable recoveries.

After the employee’s last working day, payroll can use the final confirmed information to calculate the settlement amount and complete the required exit formalities.

Is There a Fixed Time Limit for F&F?

The applicable timeline depends on the type of payment and the law governing the employee’s situation. For example, Section 17(2) of the Code on Wages, 2019 provides that wages payable to an employee who has been removed, dismissed, retrenched, or who resigns from service are to be paid within two working days, subject to the provisions of the Code and applicable rules.

Therefore, HR should not assume that every component included in a broader F&F settlement automatically has the same statutory deadline. The relevant law, rules, employment terms, and applicable company procedures should be checked for each case.

In practice, the goal should be to complete the settlement accurately and within the applicable timeline, while ensuring that all payable amounts and authorised deductions are properly verified and documented.

What Does F&F Settlement Include?

The components of a Full and Final Settlement can vary from one employee to another. The final settlement depends on factors such as the employee’s salary structure, leave balance, employment terms, company policies, applicable benefits, and relevant laws.

Common components that may be considered during an F&F settlement include:

Component	What It Means
Salary Payable	Salary or wages payable for the period worked up to the employee’s last working day.
Leave Encashment	Payment for eligible unused leave, where encashment is applicable under the organisation’s policy and applicable rules.
Reimbursements	Approved business expenses or other eligible reimbursements that remain unpaid at the time of separation.
Incentives or Variable Pay	Eligible incentives, commissions, or variable payments payable under the applicable plan or employment terms.
Bonus	Any bonus amount that is legally or contractually payable, depending on the employee’s eligibility and the applicable rules.
Gratuity	Gratuity, where the employee meets the applicable eligibility requirements under the relevant law.
Other Payable Dues	Other approved amounts that may be payable to the employee according to the employment terms, policy, or applicable law.
Authorised Deductions or Recoveries	Applicable deductions or recoveries, such as certain advances, loans, or other outstanding amounts, subject to the relevant rules and authorisation.

Important: Not Every Component Applies to Every Employee

There is no single F&F formula that applies identically to every employee. For example, one employee may have eligible leave encashment and pending reimbursement, while another may have no such amounts. Similarly, gratuity, bonus, incentives, or variable pay depend on the employee’s eligibility and the terms applicable to that payment.

Therefore, HR should review each employee’s records individually before preparing the final settlement statement.

Simple Way to Understand F&F

In simple terms, HR can look at F&F in three broad parts:

What the employee is owed: salary, eligible benefits and other payable dues.
What can be adjusted: applicable deductions and authorised recoveries.
What remains: the net F&F amount payable after those adjustments.

The final payable amount is then determined after verifying all applicable components and adjustments.

Full and Final Settlement Process: Step by Step

A Full and Final Settlement is usually completed through a series of checks between HR, payroll, the employee, and other relevant departments. A clear process helps ensure that payable amounts and applicable deductions are calculated correctly before the employee’s exit is closed.

Step 1: Confirm the Employee’s Separation Details

HR first confirms the employee’s reason for separation, resignation or termination details, notice period, and last working day (LWD). These details provide the basis for calculating the employee’s final dues.

Step 2: Check Attendance and Salary Details

Payroll reviews the employee’s attendance and salary records up to the last working day. Any salary or wage amount payable for the final period is calculated based on the applicable payroll rules.

Step 3: Verify Leave Balance

HR checks the employee’s leave records and identifies whether any unused leave is eligible for encashment under the organisation’s policy and applicable rules.

Step 4: Review Pending Payments and Benefits

HR and payroll check for other amounts that may be payable, such as approved reimbursements, incentives, commissions, bonus, gratuity where applicable, or other outstanding dues.

Step 5: Check Recoveries and Applicable Deductions

The organisation reviews any outstanding employee advances, loans, or other amounts that may be recoverable. Only applicable and properly authorised deductions or recoveries should be considered in the settlement.

Step 6: Complete the Exit Clearance

Relevant departments may confirm the return of company assets and completion of other exit formalities. For example, HR may coordinate with IT, administration, finance, or other departments where required.

Step 7: Prepare the F&F Statement

After collecting the required information, payroll prepares the F&F statement showing the applicable earnings, benefits, deductions, recoveries, and the resulting net settlement amount.

Step 8: Review and Approve the Settlement

The settlement is reviewed by the authorised HR or payroll personnel to identify calculation errors or missing information before it is processed for payment.

Step 9: Process the Final Payment

Once the settlement is approved, the amount payable to the employee is processed through the applicable payment method, subject to the relevant legal and organisational requirements.

Step 10: Close the Employee’s Exit Records

Finally, HR completes the required documentation and updates the employee’s records to reflect the closure of the employment relationship.

F&F Process at a Glance

Separation Details → Salary Check → Leave Verification → Pending Dues → Deductions/Recoveries → Exit Clearance → F&F Calculation → Review & Approval → Payment → Record Closure

This sequence may vary between organisations depending on their payroll system, internal approval process, employment terms, and applicable laws.

How Is F&F Calculated?

Full and Final Settlement is calculated by adding the amounts that are payable to the employee and then adjusting applicable deductions or recoveries. The exact calculation depends on the employee’s salary structure, last working day, eligible benefits, pending payments, employment terms, company policy, and applicable laws.

A simple way to understand the calculation is:

Net F&F Settlement = Total Payable Amounts − Applicable Deductions and Recoveries

1. Calculate Salary Payable

First, payroll calculates the salary or wages payable for the period worked up to the employee’s last working day.

For example, if an employee leaves during a month, payroll determines the amount payable for the eligible days worked in that month according to the applicable payroll calculation method.

2. Add Eligible Leave Encashment

If the employee has unused leave that is eligible for encashment, the applicable leave encashment amount is added to the settlement.

The calculation method can vary depending on the organisation’s policy and the applicable rules. Therefore, HR should use the method applicable to that employee rather than assuming one formula applies to everyone.

3. Add Other Payable Amounts

HR and payroll then review other amounts that may be payable, such as approved reimbursements, eligible incentives, commissions, bonus, gratuity where applicable, or other outstanding dues.

4. Calculate Applicable Deductions and Recoveries

Any applicable and authorised deductions or recoveries are identified. These may include certain outstanding advances, loans, or other recoverable amounts, subject to the relevant rules and authorisation.

5. Arrive at the Net F&F Amount

After adding all applicable payable amounts and adjusting the permitted deductions or recoveries, the organisation arrives at the net F&F settlement amount payable to the employee.

Simple F&F Calculation Structure

Particular	Calculation Treatment
Salary/Wages Payable	Add
Eligible Leave Encashment	Add
Approved Reimbursements	Add
Eligible Incentives/Variable Pay	Add, where applicable
Bonus	Add, where applicable
Gratuity	Add, where applicable
Other Payable Dues	Add, where applicable
Applicable Deductions/Recoveries	Subtract, where applicable
Net F&F Settlement	Final amount payable

Important: The table is a calculation framework, not a universal F&F formula. Each component should be included only when it is actually applicable to the employee.

F&F Calculation Example

Let us understand the Full and Final Settlement calculation with a simple example. The figures below are illustrative and are not intended to represent a universal payroll formula.

For simplicity, this example assumes ₹40,000 ÷ 30 × 15 = ₹20,000 as the salary payable. Actual payroll calculations may use a different method depending on the applicable salary structure, payroll practice, employment terms, and relevant rules.

Example

Suppose an employee has a monthly salary of ₹40,000 and has 15 payable days in the final month. Assume the employee also has eligible leave encashment and an approved reimbursement pending at the time of separation.

Particular	Amount	Treatment
Salary payable for the final period	₹20,000	Add
Eligible leave encashment	₹4,000	Add
Approved reimbursement	₹2,000	Add
Outstanding authorised recovery	₹3,000	Subtract
Illustrative net F&F amount	₹23,000	Payable

Calculation:

₹20,000 + ₹4,000 + ₹2,000 − ₹3,000 = ₹23,000

Therefore, based on the assumptions in this example, the illustrative net F&F amount would be ₹23,000.

Important: The salary amount in this example is assumed only for illustration. Actual salary and leave-encashment calculations may differ depending on the applicable payroll method, employment terms, company policy, and relevant laws.

What Does This Example Show?

The example demonstrates the basic principle of an F&F calculation: add applicable amounts payable to the employee and subtract applicable deductions or authorised recoveries.

In an actual settlement, the calculation may be more detailed. Items such as tax deductions, statutory contributions, gratuity, bonus, incentives, leave encashment, notice-period adjustments, or other payments may need to be considered depending on the employee’s circumstances and the applicable rules.

Therefore, HR should verify each component before finalising the F&F statement rather than applying the same calculation to every employee.

What Deductions Can Be Made in F&F?

After calculating the amounts payable to the employee, certain applicable deductions or recoveries may be adjusted as part of the F&F settlement. However, an organisation should not deduct an amount simply because the employee is leaving. The deduction should have a valid basis under applicable law, the employment terms, company policy, or an authorised arrangement.

Common adjustments that may be considered during F&F include:

Deduction / Recovery	When It May Apply
Statutory Deductions	Applicable payroll deductions or statutory contributions that are required under the relevant rules.
Tax Deduction	Applicable tax deductions based on the employee’s taxable income and payroll requirements.
Salary Advance Recovery	Where an employee has an outstanding salary advance that is recoverable under the applicable terms.
Employee Loan Recovery	Where an outstanding employee loan is due and recovery is permitted under the relevant arrangement.
Notice Period Adjustment	Where an applicable notice-period obligation results in a recoverable amount under the employment terms and applicable rules.
Other Authorised Recoveries	Other outstanding amounts that have a valid contractual, policy, legal, or otherwise authorised basis for recovery.

What About Company Assets?

If an employee has not returned company property, HR should follow the organisation’s asset-recovery process and the applicable terms before making any adjustment in the F&F settlement. An asset-related recovery should not be treated as an automatic deduction in every case.

Important Point for HR

Not every amount owed to an organisation can automatically be deducted from an employee’s F&F. HR should verify the legal and contractual basis for the deduction, maintain appropriate records, and ensure that the adjustment complies with applicable wage and employment rules.

For this reason, the F&F statement should clearly show the payable components, deductions, recoveries, and final net amount rather than presenting only one final figure.

F&F Payment Timeline in India

The timeline for Full and Final Settlement is an important part of the employee exit process. However, it is important to distinguish between the statutory timeline for payment of wages and the time taken to complete the broader F&F process, which may contain several different components.

Two-Working-Day Rule for Wages

Under Section 17(2) of the Code on Wages, 2019, where an employee is removed or dismissed, retrenched, resigns from service, or becomes unemployed due to closure of an establishment, the wages payable to the employee are to be paid within two working days of the relevant event, subject to the provisions of the Code and applicable rules.

The Code also provides that the appropriate Government may prescribe another time limit in circumstances where it considers such a limit reasonable. It further states that other applicable laws may provide for a different time limit.

Does the Two-Day Rule Mean Every F&F Component Must Be Paid in Two Days?

Not necessarily. An F&F settlement can contain several types of payments, such as salary or wages, leave encashment, incentives, reimbursements, bonus, gratuity, and other dues. The legal treatment and timeline can differ depending on the nature of the payment and the law applicable to it.

Therefore, HR should avoid treating the two-working-day provision as a blanket timeline for every component of every F&F settlement. The applicable law, rules, employment terms, and nature of each payment should be reviewed before finalising the settlement.

Why Timely F&F Matters

A timely and properly documented settlement helps reduce confusion during employee exits and gives both the employee and the organisation a clear record of the amounts payable and any applicable adjustments.

HR should therefore aim to complete the F&F process accurately and within the applicable statutory and organisational timelines, while keeping a clear record of the calculation and payment.

Note: Labour and employment requirements can change, and their application may depend on the employee, establishment, and type of payment involved. HR should verify the latest applicable law and rules before relying on a specific statutory timeline.

Documents Related to F&F Settlement

Proper documentation is an important part of the Full and Final Settlement process. It helps HR and payroll maintain a clear record of the employee’s final dues, applicable deductions, approvals, and payment.

The documents involved may vary depending on the organisation, employee’s role, reason for separation, and applicable requirements. Common documents and records may include:

Document / Record	Purpose
F&F Statement	Shows the components used to calculate the employee’s final settlement, including payable amounts and applicable deductions or recoveries.
Final Payslip	Provides details of the final salary and applicable payroll deductions.
Leave Balance Record	Shows the employee’s leave balance and helps determine whether any leave is eligible for encashment.
Exit Clearance / No-Dues Record	Confirms completion of relevant departmental clearances and identifies any outstanding recoveries, where applicable.
Reimbursement or Expense Records	Supports the verification of approved business expenses or reimbursements that are still payable.
Asset Handover Record	Records the return of company property or identifies any outstanding asset-related matters.
Gratuity-Related Records	May be maintained where gratuity is applicable, based on the employee’s eligibility and the relevant requirements.
Settlement Approval / Payment Record	Provides evidence of the review, approval, and payment of the final settlement.

Why F&F Documentation Matters

Maintaining proper records makes the settlement process easier to review and helps explain how the final amount was calculated. It can also help HR respond to questions or disputes regarding salary, leave, reimbursements, deductions, or other settlement components.

Organisations should maintain the records required under their applicable legal, payroll, tax, and internal record-keeping requirements.

F&F vs Salary: What Is the Difference?

Salary and Full and Final Settlement are related to employee payments, but they are not the same thing. Salary is a regular payment for work performed during employment, while F&F is the broader settlement of applicable financial dues when employment ends.

Basis	Salary	Full & Final Settlement (F&F)
Meaning	Regular payment made to an employee for their work.	Final settlement of applicable financial dues when employment ends.
When It Is Paid	Usually paid according to the organisation’s regular payroll cycle.	Processed as part of the employee’s exit and separation process.
Scope	Primarily relates to the employee’s regular earnings for a pay period.	Can include salary or wages plus other applicable dues, benefits, deductions, and recoveries.
Leave Encashment	Generally not part of regular monthly salary.	May be included where the employee is eligible for leave encashment.
Other Dues	Usually handled through the normal payroll process.	May include approved reimbursements, incentives, bonus, gratuity where applicable, or other outstanding dues.
Deductions / Recoveries	Regular applicable payroll deductions may apply.	Applicable deductions and authorised recoveries may be adjusted as part of the settlement.

Simple Example

Suppose an employee receives their regular monthly salary during employment. When the employee leaves, the organisation may need to calculate salary payable up to the last working day, eligible leave encashment, approved pending reimbursements, and other applicable dues, while also considering permitted deductions or recoveries.

The resulting settlement is the employee’s Full and Final Settlement.

In simple terms, salary is a regular payment during employment, whereas F&F is the broader financial closure of the employment relationship.

F&F Settlement Checklist for HR

A structured checklist can help HR and payroll verify the important details before finalising an employee’s Full and Final Settlement. The exact requirements may vary by organisation and employee circumstances, but the following checklist covers the key areas HR should review.

Check

What HR Should Verify

Separation Details

Reason for separation, resignation/termination details, notice period, and last working day.

Salary / Wages

Salary or wages payable up to the applicable final date of employment.

Attendance

Final attendance and payable days are correctly recorded.

Leave Balance

Eligible unused leave and applicable leave encashment are verified.

Reimbursements

Pending approved expenses or reimbursements are reviewed.

Incentives / Variable Pay

Eligibility and pending amounts are checked according to the applicable plan or terms.

Bonus / Gratuity

Eligibility and applicable requirements are reviewed where relevant.

Advances / Loans

Any outstanding amounts due from the employee are verified.

Company Assets

Laptop, ID card, access card, equipment, or other company property is returned or appropriately cleared.

Deductions / Recoveries

Each deduction or recovery has an applicable and authorised basis.

F&F Calculation

All payable components and applicable adjustments are accurately calculated.

Approval

The settlement has been reviewed and approved by the authorised person or team.

Payment

The final settlement is processed within the applicable timeline and through the appropriate payment method.

Records & Documents

F&F statement, final payslip, clearance records, and other required documents are maintained or provided as applicable.

Quick HR Checklist

- ☐ Confirm last working day

- ☐ Verify attendance and salary

- ☐ Check eligible leave balance

- ☐ Review pending reimbursements and other dues

- ☐ Check applicable bonus, incentives, or gratuity

- ☐ Verify advances, loans, and other recoveries

- ☐ Complete asset and departmental clearance

- ☐ Review all deductions and adjustments

- ☐ Prepare and verify the F&F statement

- ☐ Obtain required approval

- ☐ Process payment within the applicable timeline

- ☐ Complete documentation and close the exit record

HR Tip: Do not rely on a standard checklist alone. Before closing an F&F settlement, verify the employee’s specific employment terms, applicable policy, and relevant legal requirements.

Common F&F Mistakes HR Should Avoid

Full and Final Settlement involves several payroll and employee-exit details. A small error in any of these areas can lead to incorrect payments, delays, or unnecessary disputes. HR can reduce such issues by following a consistent review process.

1. Using the Wrong Last Working Day

The last working day is an important input for the final settlement. Using an incorrect date can affect salary, leave, benefits, and other calculations.

2. Not Checking the Final Attendance

HR and payroll should verify the employee’s attendance and payable days before calculating the final salary or wages.

3. Ignoring Eligible Leave Encashment

Unused leave should be reviewed according to the applicable leave policy and rules. Assuming that all unused leave is automatically encashable can result in an incorrect settlement.

4. Missing Pending Payments

Approved reimbursements, incentives, commissions, or other eligible dues can sometimes be overlooked during exit processing. HR should review pending payments before closing the settlement.

5. Applying Deductions Without Proper Verification

Deductions and recoveries should have an applicable and authorised basis. HR should not automatically deduct amounts merely because an employee is leaving the organisation.

6. Applying the Same F&F Formula to Everyone

Employees may have different salary structures, benefits, leave rules, incentive plans, and employment terms. A single standard calculation should not be assumed to apply to every employee.

7. Not Completing Exit Clearance

Pending company assets, advances, loans, or other outstanding matters should be identified through the appropriate clearance process before the settlement is finalised.

8. Not Reviewing the F&F Statement

Before payment is processed, HR or payroll should review the calculation to identify missing components, incorrect figures, or inappropriate adjustments.

9. Confusing Statutory Timelines

HR should not assume that every component of an F&F settlement automatically follows the same statutory payment deadline. The applicable law and rules should be checked for the specific payment or benefit involved.

10. Poor Documentation

F&F calculations, approvals, clearance records, and payment details should be properly documented. Good documentation makes the settlement easier to verify and helps address employee queries later.

Quick Reminder for HR

Verify the dates → Check the dues → Review benefits → Confirm deductions → Complete clearance → Recheck the calculation → Document the settlement.

A well-organised F&F process is not only about paying the final amount; it is also about ensuring that the calculation is accurate, transparent, properly supported, and completed according to the requirements applicable to the employee.

Frequently Asked Questions About F&F

1. What is Full and Final Settlement (F&F)?

Full and Final Settlement (F&F) is the process of calculating and settling the financial dues of an employee when their employment ends. It may include salary or wages, eligible benefits, pending payments, and applicable deductions or recoveries.

2. What does F&F settlement include?

Depending on the employee’s circumstances, F&F may include salary or wages payable, eligible leave encashment, approved reimbursements, incentives or variable pay, bonus, gratuity where applicable, and other outstanding dues. Applicable deductions or recoveries may also be adjusted.

3. Is F&F the same as the employee’s last salary?

No. The last salary generally refers to the employee’s regular salary or wages for the final pay period. F&F is broader and may include other applicable payments, benefits, deductions, and recoveries related to the employee’s exit.

4. How is F&F calculated?

A simple calculation approach is: Total Applicable Payable Amounts − Applicable Deductions and Recoveries = Net F&F Settlement. The exact calculation depends on the employee’s salary, eligible benefits, pending dues, employment terms, company policy, and applicable laws.

5. Can unused leave be included in F&F?

Unused leave may be included as leave encashment where the employee is eligible under the applicable leave policy, employment terms, and relevant rules. Not all types of leave are necessarily eligible for encashment.

6. Can deductions or recoveries be made from F&F?

Yes, applicable deductions or recoveries may be adjusted from F&F, but they should have a valid basis under applicable law, employment terms, company policy, or an authorised arrangement. HR should verify each deduction before applying it.

7. Is gratuity included in F&F settlement?

Gratuity may form part of the overall exit settlement where the employee meets the applicable eligibility requirements. Its calculation and payment should be handled according to the law applicable to the employee.

Where gratuity is payable under the applicable law, its payment timeline should be considered separately from the broader F&F process.

Under Section 7(3) of the Payment of Gratuity Act, 1972, the employer is required to arrange payment of gratuity within 30 days from the date it becomes payable, subject to the applicable provisions of the Act.

8. How long does F&F settlement take in India?

F&F does not have one universal statutory timeline for every component. The applicable timeline depends on the nature of the payment and the law governing it. For example, Section 17(2) of the Code on Wages, 2019 addresses payment of wages in specified separation situations, while gratuity has its own payment provision under the applicable gratuity law.

Conclusion

Full and Final Settlement is an important part of the employee exit process. It ensures that the financial relationship between the employee and the organisation is properly reviewed and closed when employment ends.

A good F&F process is not just about calculating the final salary. HR and payroll need to verify salary or wages, eligible leave encashment, pending payments, applicable benefits, deductions, recoveries, and other relevant dues before finalising the settlement.

The key is accuracy, proper documentation, and compliance with the applicable rules. Each employee’s F&F should be reviewed based on their circumstances, employment terms, company policies, and applicable laws rather than using the same calculation for everyone.

When handled carefully, F&F helps the organisation complete the employee exit process smoothly while giving the employee a clear understanding of their final settlement.

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