Pay · HR glossary

Full and Final Settlement

Full and final settlement is the calculation and payment of amounts due when employment ends, a term commonly used in India. It may include unpaid earnings, eligible leave payments and authorised deductions.

Example

Payroll reconciles the final working period, outstanding reimbursements and applicable leave payment before issuing a clear settlement statement.

What to keep in mind

Different components can have different rules and deadlines. A settlement label or signed receipt does not automatically waive statutory rights, and deductions must have an appropriate legal basis.

Further reading

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