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Full and Final Settlement Letter: How to Write and Mail HR

Home » Labour Law Guide » Full and Final Settlement Letter: How to Write and Mail HR

Are you wondering how to handle the full and final settlement process after resigning from your job? The process of settling your dues with the employer can sometimes be daunting, but with the right approach and understanding of the procedures involved, you can smoothly navigate through it. Here’s a comprehensive guide on how to mail HR for full and final settlement:

Table of Contents

What is full and final settlement?

full and final settlement ( fnf mail to HR ) is a letter written to request payment of final salary. One may require this letter when he/she is resigning from his/her job in order to get the remaining salary. If your employer does not arrange for a full and final settlement of your salary, you should request this by writing to the HR of the company through an Email or by postal letter. This article will give you an idea to send an email to HR for the full and final settlement of your salary.

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Procedure:

Understanding Full and Final Settlement:

Full and final settlement refers to the process where an employee receives the remaining dues from the employer after resignation. It includes salary for the notice period, pending salary, leave encashment, gratuity (if applicable), and other entitlements.

Prepare a Formal Email:

Start the process by drafting a formal email to your HR department expressing your intention to settle all dues and requesting the full and final settlement calculation. Mention your last working day and the date you expect the settlement.

Sample Email Format:

How to write Full and Final settlement letter to company HR?

  1. Your name, address, and contact information
  2. The recipient’s name, position title, and address
  3. A subject line: full and final settlement
  4. Your position title at the company
  5. How long you worked for the company
  6. The company name
  7. Your resignation date (last day of work)
  8. A statement that you have completed your duties
  9. A statement that you have served the notice period
  10. A request for the relieving letter
  11. A request for full and final settlement

Remind these point while writing letter to HR

  1. Write your request to your human resources contact or the director of human resources.
  2. Use a professional letter format for your request letter.
  3. State your request clearly.
  4. Ask in a polite tone and thank the recipient for their assistance.

How to get Sample Full and Final settlement Letter format?

You are at the right place. We have the draft copy of full and final settlement letter format from employee to company HR or vice versa.

The complete full format for the Full and final settlement letter to HR is given below.

Understanding Legal Rights as an Employee:

As an employee, you have certain legal rights during the full and final settlement process. Familiarize yourself with the employment laws in India to ensure you receive what you are entitled to.

Follow-Up and Communication:

Be proactive in following up with HR regarding the progress of your settlement. Maintain open communication and address any concerns or discrepancies promptly.

Timelines and Documentation:

Check with your HR department about the timelines for settlement and the required documentation. Ensure you submit all necessary documents to avoid delays.

Resolving Disputes:

If you encounter any disputes or discrepancies during the settlement process, try to resolve them amicably with HR. If needed, seek legal advice to protect your rights.

Smooth Exit Process:

The full and final settlement is an essential part of the exit process. Ensure you complete all formalities and hand over any company property before leaving.

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Full and Final Settlement Letter format

To,
The Human Resources Manager,
(Name Of Company),
(Address)

Date: //__ (Date)

Subject: Request for full and final settlement

Respected Sir / Madam,

I would like to bring into your kind concern that my name is (Name) and I was working at your (Company/ Organization) from _ (Date) till _ (Date) in __ (Department) department as (Designation) bearing employee id __(Employee Id).

That on ________(date) I have submitted my resignation letter which is duly approved by __________(Name of the approver) and also serverd my notice period.

I am writing this letter to state that on _ (Day) i.e. (Date), I got relieved from your _ (Company/ Organization) but my full and final settlement has not been done. I request you to kindly do the full and final settlement and send me all dues (if any).I also request you to please share the original statement with me as soon as possible.

If you have any questions about my request, please call me at ___________(contact number).

Thank you for your time and your attention to this matter.

I shall be highly obliged.

Kind Regards,
_____________ (Signature)
_____________ (Name),
_____________ (Address)
_____________(Employee id)

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Frequently Asked Questions (FAQs):

Why Full and Final Settlement Letter is important?

This document is crucial as it helps in closing all financial obligations between the employer and employee. It is important because it ensures that there is no confusion or dispute regarding the final amount due to the employee.

What is Full and Final Settlement in payroll?

When an employee is leaving the company, he has to get paid for the last working month. This procedure of paying or recovering during the resignation process is called Final Settlement.

When should I send a full and final settlement letter?

You should send a full and final settlement letter once you have reached an agreement with your employer on the terms of your separation, including any outstanding payments or benefits owed to you.

Can I negotiate the terms of a full and final settlement letter?

Yes, you can negotiate the terms of a full and final settlement letter, particularly if you believe that you are entitled to additional payments or benefits. However, it is important to approach the negotiation in a professional and constructive manner, and to seek legal advice if necessary.

Under which law can an employee seek relief?

An employee can seek relief under the Industrial Employment Standing Orders Act, Payment of Wages Act, ID Act as per the explanation of employee under these enactments or through Civil Court.

What Includes in Full and Final Settlement

  1. Pending salary of the employee.
  2. Leave encashment such CLs, ELs, PLs
  3. Bonus
  4. Gratuity amount
  5. Arrears
  6. Incentives etc.

How do I draft a full and final settlement letter?

To draft a full and final settlement letter, start by clearly stating your name, employee ID, and the reason for your separation. Then, list the outstanding payments or benefits that you are owed, along with the total amount. Finally, include a statement indicating that you accept the terms of the settlement as final and complete, and request that the employer processes the payment as soon as possible.

What should I do if my employer does not respond to my full and final settlement letter?

If your employer does not respond to your full and final settlement letter within a reasonable period of time, you may need to seek legal advice or take further action to enforce your rights.

Is it necessary to send a Full and Final Settlement Letter to HR?

Yes, it is necessary to send a Full and Final Settlement Letter to HR to ensure that all your dues and payments are settled promptly after your resignation.

How long does it take for HR to settle full and final payment?

The time taken by HR to settle full and final payment varies depending on the company policies and procedures. However, it is advisable to follow up regularly to ensure a prompt settlement.

Can I use a template for a Full and Final Settlement Letter?

Yes, you can use a template for a Full and Final Settlement Letter to ensure that all necessary details are included and the letter is professional and effective.

When writing a Full and Final Settlement Letter, there are a few important steps to follow.

Firstly, ensure that you have all the relevant details such as the employee’s name, designation, last working day, and any outstanding dues. Secondly, calculate the final amount due to the employee including any salary, bonuses, reimbursements, or other benefits. Finally, draft the letter in a professional and clear manner, including all necessary details and calculations.

Tips to ensure a smooth process when requesting a Full and Final Settlement Letter from HR.

To ensure a smooth process when requesting a Full and Final Settlement Letter from HR, it is important to follow a few tips. Firstly, make the request in writing and keep a copy of the request for your records. Secondly, provide all the necessary details and documents such as a resignation letter, relieving letter, and any outstanding claims. Thirdly, follow up with HR if there are any delays or discrepancies in the settlement process.

Information on common mistakes to avoid when writing a FnF Settlement Letter.

There are some common mistakes that one should avoid when writing a Full and Final Settlement Letter. These include not including all relevant details and calculations, using unprofessional language or tone, and not following up with HR to ensure the timely settlement of dues.

Examples of situations in which a FnF settlement letter may be required.

A Full and Final Settlement Letter may be required in various situations such as resignation, termination, retirement, or end of a fixed-term contract. It is important to ensure that the letter is prepared accurately and professionally, as any errors or discrepancies can lead to disputes and legal issues.

Where can I find a sample full and final settlement letter format?

You can find sample formats from our website only or request one from your HR department. Ensure the letter includes all relevant details, such as your last working day and the settlement amount.

What is the time limit for the full and final settlement after resignation?

As per labor laws in India, the full and final settlement should be completed within 45 days from the last working day.

Can I request a relieving letter along with the full and final settlement?

Yes, you can request a relieving letter along with the settlement. A relieving letter confirms the end of the employment relationship and can be crucial for future job prospects.

Can I email HR for the full and final settlement request?

Yes, emailing HR is a common and acceptable way to request the full and final settlement. It ensures a written record of your request.

What is the procedure for full and final settlement under the Payment of Wages Act?

The Payment of Wages Act governs the timely payment of wages and the full and final settlement of employees. HR should adhere to the Act’s guidelines while processing settlements.

Can I negotiate the full and final settlement amount with HR?

Yes, in some cases, you may negotiate certain aspects of the settlement, especially if there are discrepancies in the calculation or unpaid dues.

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