Full and Final Settlement Letter

[company_name] [company_address] Date: [letter_date] To, [employee_name] Employee ID: [employee_id] [designation] Subject: Full and final settlement of dues Dear [employee_name], Further to the cessation of your employment with [company_name] ("the Company") with effect from [last_working_day], we set out below the computation of your full and final settlement. EMPLOYMENT PARTICULARS Date of joining : [joining_date] Last working day : [last_working_day] Designation : [designation] A. EARNINGS [earnings_breakup] B. DEDUCTIONS AND RECOVERIES [deductions_breakup] C. NET AMOUNT PAYABLE Net amount payable to you: Rs. [net_payable] Payment will be made by [payment_mode]. STATUTORY BENEFITS 1. PROVIDENT FUND — the balance in your account with the Employees' Provident Fund Organisation may be withdrawn or transferred to your new employer through the EPFO portal using your Universal Account Number. The Company has completed its filings in respect of contributions up to your last working day. 2. GRATUITY — where you have completed the qualifying period of continuous service prescribed under the Payment of Gratuity Act, 1972, gratuity is included in the computation above. It is calculated as fifteen days' wages, based on your last drawn wages, for every completed year of service and for any part thereof in excess of six months, subject to the ceiling prescribed under the Act. 3. LEAVE ENCASHMENT — accrued and unused leave has been encashed in accordance with Company policy and the applicable State Shops and Establishments legislation. 4. FORM 16 — will be issued in the usual course after the close of the financial year, reflecting the tax deducted at source. DOCUMENTS ENCLOSED / TO FOLLOW - Relieving letter - Experience certificate - Settlement computation sheet CONTINUING OBLIGATIONS Your obligations of confidentiality, and in respect of the Company's intellectual property, survive the cessation of your employment and continue to bind you. ACKNOWLEDGMENT AND ACCEPTANCE Kindly verify the computation above. If you agree with it, please sign and return the acknowledgment below, whereupon the settlement will be released. We thank you for your services and wish you well in your future endeavours. For [company_name] Authorised Signatory Name: Designation: ───────────────────────────────────────────────────────────── ACKNOWLEDGMENT BY THE EMPLOYEE I, [employee_name], acknowledge: 1. That I have received and verified the computation of my full and final settlement set out above. 2. That on receipt of the net amount of Rs. [net_payable], I shall have received all amounts due to me from the Company in respect of my employment, including salary, allowances, leave encashment, bonus and gratuity. 3. That I have returned all Company property, documents, data and access credentials in my possession. 4. That I remain bound by my continuing obligations of confidentiality and in respect of the Company's intellectual property. [employee_name] Signature: ______________________ Date: ______________ A NOTE FOR BOTH PARTIES FOR THE EMPLOYER: settle promptly. The applicable State Shops and Establishments legislation, and the Payment of Wages Act, 1936, prescribe periods within which wages due on cessation of employment must be paid, and delay attracts consequences. Gratuity in particular carries interest where payment is delayed beyond the period prescribed under the Payment of Gratuity Act, 1972. FOR THE EMPLOYEE: check the computation line by line before signing — notice-period recoveries, leave balances and gratuity calculations are where errors most commonly appear. A general acknowledgment that no dues remain will make it harder to claim an amount later, so raise any discrepancy in writing BEFORE signing. Signing under protest, with the specific dispute recorded, is preferable to signing an unqualified acknowledgment you disagree with.