Why Full and Final Settlement is mandatory?

Created by Product Content Team, Modified on Thu, 19 Jun at 11:04 AM by Product Content Team


Full and Final Settlement refers to the process of settling all financial dues and obligations between an employer and an employee when the employment relationship comes to an end. It typically occurs upon the employee's resignation, retirement, or termination.


The full and final settlement process is mandatory to avoid the following processes:

  • Billing of the separated employee.
  • Calculating income tax for the separated employee based on the leaving date.


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