What is full and final settlement?
full and final settlement 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.
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.
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
- Pending salary of the employee.
- Leave encashment such CLs, ELs, PLs
- Bonus
- Gratuity amount
- Arrears
- Incentives etc.
How to write Full and Final settlement letter to company HR?
- Your name, address, and contact information
- The recipient’s name, position title, and address
- A subject line: full and final settlement
- Your position title at the company
- How long you worked for the company
- The company name
- Your resignation date (last day of work)
- A statement that you have completed your duties
- A statement that you have served the notice period
- A request for the relieving letter
- A request for full and final settlement
Remind these point while writing letter to HR
- Write your request to your human resources contact or the director of human resources.
- Use a professional letter format for your request letter.
- State your request clearly.
- Ask in a polite tone and thank the recipient for their assistance.
Now Its easy to Create Employment Agreements
Sample 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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