Response

Full and Final Settlement commonly known as FnF process is done when an employee is leaving the organization. At this time, he/she has to get paid for the last working month + any additional earnings or deductions. The procedure has to be carried out by the employer after the employee resigns from their services. When an employee is leaving the company, he has to get paid for last working month. This procedure of paying or recovering during the resignation process is called Final Settlement. Final settlement can be done on the last working payroll month or subsequent months. Full and final settlement is a process that occurs when an employee resigns from your organization. At the time of the resignation, employees undergo the process, which is also known as the FnF settlement. Along with bonus earnings & tax deductions, the employees have also paid for his/her last working month. Exit interviews and feedback surveys are also a part of the FnF settlement in some cases. These reviews help the organization in evaluating its strengths and weaknesses. FnF also helps the companies to keep track of resources and privileges allocated to their employees (for example, company laptops) and recover possession of the same before the employeeÕs last day. Your company policy will dictate if the FnF process happens after you relieve your employees, or just after they have given their resignation. The HR unit is usually in charge of handling this process. The FnF settlement process usually takes a month to be completed from the date of the employeeÕs resignation. The full and final settlement is a complex process, which requires extensive knowledge of the subject and experience.

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LAWAYZ-2023-113