Full & Final Settlement (F&F) is the process of calculating and settling all financial dues between an employer and an employee when the employee leaves an organization. It is generally completed after resignation, termination, retirement, or other forms of employment separation, according to applicable company policies, employment terms, and statutory requirements.
In an HRMS, Full & Final Settlement brings together information such as salary payable, unpaid wages, leave encashment, incentives, bonuses, reimbursements, deductions, loans or advances, notice-period adjustments, and other applicable employee dues. The system can use employee attendance, payroll, leave, compensation, and separation records to support an accurate settlement calculation.
A structured F&F process helps HR and payroll teams reduce manual calculations, maintain consistent settlement records, track approvals, and generate settlement statements. It can also help organizations maintain an audit trail of settlement components and payment status.
For organizations managing contract and outsourced workforces, CLMS can support separation-related workforce records, attendance, payable hours, contractor workforce information, and settlement-related reconciliation where applicable.
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