Full and Final Settlement process needs to be followed by the employer once the employee leaves the organization. It is the amount of money an employee receives after all the deductions after leaving the organization.
Final Settlement for an employee involves a series of steps. This process starts with gathering leave details and proceeds till generating Payslip.
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Start by clicking on Actions tab and search and select Settle Resigned Employee. Alternatively, you can also Navigate to Payroll > Payroll Inputs > Final Settlement. The Final Settlement page appears.
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Click Settle Employee.
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You can choose from the drop-down of Separated Employee if the resignation details are updated in the Employee information page else Click the Search Employee option button.
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Fill the Employee, Resignation Submitted On and Leaving Date, Leaving Reason and Settlement Date fields.
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Click Next.
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Select the Notice Required checkbox if you want the employees to provide notice.
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In the Notice Period field, type the appropriate days.
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Click Next. The Work Days section appears.
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Modify the workdays as required.
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Click Next. The Leave Encashment section appears.
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Type the number of days to be encashed.
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Click Next. The Remarks section appears.
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Type remarks if any. Click Finish.
Learn more about the process from this document or by watching the video here.