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suresh narain (Application Engineer)     04 March 2010

Formalities for full and final settlement

Good Morning

I work for a Chennai based software company ...  If my company gives me notice, what are the formalities of Formalities for full and final settlement ... do we have a universal and legal format for this activity

1) Can they have a one sided ... unilateral full and final settlement ?

2) Can it be enforced by the company without clearing my earlier dues and notice pay ? 

3) What do I do if company refuses to clear my arrears & notice pay ...


Your help is solicitated ... Suresh ... ... 08097899955


 4 Replies

Sarjooram Sharma (Assistant Labour commissioner)     06 March 2010

For full and final settlement, one month's or three month's notice, whichever is applicable, should be given. Or pay in lieu notice period or remaining notice period may be given. The retrenchment compensation at the rate of 15 days pay per year should be given. Remaing wages, encashment of remaing earned leaves, bonus, gratuity should also be given at the time of retrenchment. The principle of last come first go should also be followed. The retrenched employee should be provided opportunity for re-engagement if vacancy come in future on the same post. 

2 Like

Shreyas Zinjarde (Advocate/Consultant)     10 March 2010

I do agree with Mr. Sharma. I would like to add something. The company has to settle all accounts as mentioned by Mr. Sharma after obtaining necessary no dues from respective departments/society etc. Moreover an employee/officer can always take recourse of provisions of applicable laws in case of witholding of any monetary benefits by the employer.  The apppointment order specifies the notice period. The notice period can be waived off, if specified in appointment order, by offering wages/salary for the notice period.   

1 Like

Ashok Saini (Regional Head - North India )     11 January 2011

I have resigned from my post after serving the notice period, and its one month now. My company is not able to settle my full and final which includes 1 month salary, bonus, encashment of leaves and etc. Every thing is clear from my part but no one is replying in my organisation to clear the dues. HR is not able to take the decision, as per their information the dues are hold by the CEO. I never had any issues in my tenure but I am not able to get the clear response. They are also not repling on my mails.


Kindly advise what all legal procedures need to be done and what is my rights?



Ashok Saini

Kirti Kar Tripathi (lawyer)     16 January 2011

you give legal notice first, thereafter take legal recourse. this is normal practice adopted by the employers not to clear full and final payment of an employee, who resigned his services. 

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