Free letter template · Word

Full & Final Settlement Letter

A full and final settlement letter is the cover letter sent to a former employee along with, or confirming, the F&F payment. It summarises the net amount, payment date and mode, encloses the detailed computation and tells the employee what to expect next on PF, Form 16 and gratuity.

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[Company Logo][Company Name]

FULL AND FINAL SETTLEMENT

Ref. No.:: [Reference Number]
Date:: [Date]

To,
[Employee Name]
Former [Designation], [Department]
Employee ID: [Employee ID]
[Employee Address]

Subject: Full and Final Settlement of Your Dues

Dear [Employee Name],

Further to your separation from [Company Name] on [Last Working Day], we have completed your full and final settlement. The summary is given below and the detailed statement is enclosed.

Particulars	Amount (₹)
Salary for days worked	[Amount]
Leave encashment	[Amount]
Bonus / incentive	[Amount]
Gratuity (if eligible)	[Amount]
Reimbursements	[Amount]
Total earnings	[Amount]
Less: Notice recovery	[Amount]
Less: Advances and other recoveries	[Amount]
Less: PF, ESI, professional tax and TDS	[Amount]
Net amount payable	[Amount]

The net amount of ₹ [Amount] has been credited to your bank account ending [last 4 digits] on [DD/MM/YYYY] vide transaction reference [UTR Number].

If the settlement shows an amount recoverable from you, please pay ₹ [Amount] to the company by [Date] using the details given in the enclosure.

Next steps:

Provident Fund: Your date of exit has been updated with EPFO. You can transfer or withdraw your PF online using UAN [UAN].
Form 16: Your Form 16 for financial year [Year] will be issued as per the usual schedule.
Gratuity: [Included above / will be paid separately / not applicable as service is under five years].

If you have any query about the computation, please write to [HR Email] within [number] days of this letter, and we will respond promptly.

We thank you for your services and wish you well.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]

Received the statement and payment
[Employee Name]
Date: [Date]

Enclosure: Full and final settlement statement

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What this template includes

Reference to last working day and F&F statement
Summary table of total earnings, deductions and net amount
Payment date, mode and transaction reference
Enclosed detailed computation
Next steps for PF transfer or withdrawal, Form 16 and gratuity
Process to raise queries within a set period
Acknowledgement section

When to use it

The F&F has been approved and paid and you need to inform the ex-employee
The employee asks for written confirmation of the settlement
The settlement results in an amount recoverable from the employee
You need a document the employee can sign to acknowledge receipt

How to customise this template

1Copy totals from the F&F statement so figures match exactly
2If the net is recoverable, replace the payment paragraph with the recovery paragraph
3Insert the UTR or cheque number
4Send by email to the personal address and keep proof of dispatch

HR tips

Always enclose the detailed computation, not just the net figure
Give a reasonable window for queries, and respond to them
Avoid broad waiver language that asks the employee to give up statutory rights
Track pending gratuity separately if it is paid later

Settlement payments and timelines are subject to wage, bonus, gratuity and tax laws, including the Labour Codes and state rules. Use this letter as a starting point and review it against applicable law and your policies, with a legal adviser where needed.

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Frequently asked questions

What is a full and final settlement letter?+

It is a letter from the employer confirming the net amount settled with a former employee, how and when it was paid, and enclosing the detailed computation.

Should an employee sign the F&F letter?+

Employees are often asked to sign an acknowledgement of receipt. They should check the computation first and raise any discrepancy in writing.

How long does full and final settlement take in India?+

It depends on company policy and applicable law. Many companies pay within 30 to 45 days, and the Labour Codes provide timelines for wage payment on separation, so check current rules.

All 50 resignation, exit & full-and-final settlement →

[Company Logo][Company Name]

FULL AND FINAL SETTLEMENT STATEMENT

F&F No.:: [Reference Number]
Date of Preparation:: [Date]

A. Employee Details

Particulars	Details	Particulars	Details
Employee Name	[Employee Name]	Employee ID	[Employee ID]
Designation	[Designation]	Department	[Department]
Date of Joining	[Date of Joining]	Last Working Day	[Last Working Day]
Total Service	[Years] years [Months] months	Separation Type	[Resignation / Termination / Retirement]
Monthly Basic + DA (₹)	[Basic Salary]	Monthly Gross (₹)	[Amount]
PAN	[PAN]	UAN	[UAN]

B. Earnings

S. No.	Component	Basis of Calculation	Amount (₹)
1	Salary for days worked in final month	[Days] days x gross per day	[Amount]
2	Leave encashment	[Days] days x [basic / basic + DA] per day	[Amount]
3	Statutory bonus / ex-gratia	As per Payment of Bonus rules / policy, pro-rata	[Amount]
4	Gratuity (if eligible)	15/26 x last Basic + DA x completed years	[Amount]
5	Variable pay / incentive due	As per policy	[Amount]
6	Salary in lieu of notice (if employer-initiated)	[Days] days x gross per day	[Amount]
7	Approved reimbursements	As per finance clearance	[Amount]
	Total Earnings (A)		[Amount]

C. Deductions

Template · Word

Full & Final Settlement Statement

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[Company Logo][Company Name]
FINAL SETTLEMENT APPROVAL FORM
Approval No.:
[Reference Number]
Date:
[Date]
1. Employee Summary
Employee Name
Employee ID
Designation / Department
Date of Joining
Last Working Day
Separation Type
F&F Statement Reference
2. Pre-payment Checks
- Exit clearance form fully signed
- Finance clearance received with recoveries
- Final month attendance and leave balance verified
- Investment proofs considered for TDS
- Gratuity eligibility checked (five years' continuous service or applicable rule)
- Bank details verified
3. Settlement Summary
Form · Word
Final Settlement Approval Form
Download .docx

Employee Name
Employee ID
Designation / Department
Date of Joining
Last Working Day
Separation Type
F&F Statement Reference

[Company Logo][Company Name]

FINAL SALARY SETTLEMENT SHEET

Employee:: [Employee Name] ([Employee ID])
Salary Month:: [Month YYYY]
Last Working Day:: [Last Working Day]

1. Attendance

Calendar Days	Days up to LWD	Paid Leave	LOP Days	Payable Days
[Number]	[Number]	[Number]	[Number]	[Number]

2. Earnings

Component	Monthly Rate (₹)	Payable Days	Prorated Amount (₹)
Basic + DA	[Basic Salary]	[Number]	[Amount]
HRA	[HRA]	[Number]	[Amount]
Special allowance	[Amount]	[Number]	[Amount]
Shift / night allowance	[Amount]	[Number]	[Amount]
Overtime / arrears	-	-	[Amount]
Gross earnings			[Amount]

3. Exit-specific Items

Template · Word

Final Salary Settlement Sheet

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[Company Logo][Company Name]
RESIGNATION LETTER
Date:
[Date]
Employee ID:
[Employee ID]
To,
[Reporting Manager]
[Designation of Manager]
[Company Name]
[Company Address]

Cc: [HR Name], Human Resources
Subject: Resignation from the post of [Designation]
Dear [Reporting Manager],
Please accept this letter as formal notice of my resignation from the position of [Designation] in the [Department] department of [Company Name]. I joined the organisation on [Date of Joining], and after careful thought I have decided to move on to pursue [a new professional opportunity / higher studies / personal reasons].
As per the terms of my appointment, I will serve a notice period of [Notice Period], and my last working day will be [Last Working Day]. If the company agrees to an earlier release, I am open to discussing it, subject to completing my handover.
Letter · Word
Resignation Letter Format
Download .docx
[Company Logo][Company Name]
RESIGNATION ACCEPTANCE LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
[Work Location]
Subject: Acceptance of Your Resignation
Dear [Employee Name],
We acknowledge receipt of your resignation letter dated [Date of Resignation]. After discussion with your reporting manager, the management has accepted your resignation from the position of [Designation]. Your last working day with [Company Name] will be [Last Working Day].
Before your last working day, please complete the following:
Letter · Word
Resignation Acceptance Letter
Download .docx
[Company Logo][Company Name]
ACKNOWLEDGEMENT OF RESIGNATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Acknowledgement of Resignation Received on [Date of Resignation]
Dear [Employee Name],
This is to acknowledge that the Human Resources department received your resignation from the position of [Designation] on [Date of Resignation] through [email / letter / HRMS]. Your resignation has been recorded in your personnel file with this date.
As per your appointment terms, your notice period is [Notice Period]. Based on the date of receipt, your tentative last working day would be [Last Working Day]. Please treat this date as provisional until you receive the formal acceptance letter, which will confirm the final date and exit formalities.
Letter · Word
Resignation Acknowledgement Letter
Download .docx
[Company Logo][Company Name]
RESPONSE TO RESIGNATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Your Resignation Dated [Date of Resignation] – Unable to Accept as Submitted
Dear [Employee Name],
We have received your resignation dated [Date of Resignation] requesting relieving on [Requested Date]. After review, we regret that the company is unable to accept the resignation on the terms submitted, for the following reason:
- Option 1 – Notice period: Clause [Clause Number] of your appointment letter requires [Notice Period] notice or payment in lieu. Your request does not meet this requirement.
- Option 2 – Pending inquiry: A domestic inquiry under charge sheet Ref. No. [Reference Number] is in progress, and as per [Standing Orders / Policy Name] the matter must be concluded before separation is processed.
- Option 3 – Service agreement: Your [training / service] agreement dated [Date] sets out the exit process in Clause [Clause Number], which has not yet been followed.
Letter · Word
Resignation Rejection Letter
Download .docx
[Company Logo][Company Name]
NOTICE PERIOD – TERMS AND EXPECTATIONS
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Your Notice Period and Related Guidelines
Dear [Employee Name],
Further to your resignation dated [Date of Resignation], this letter sets out the arrangements that will apply during your notice period.
Item Details
Notice start date [Date]
Notice period as per appointment letter [Notice Period]
Last working day [Last Working Day]
Handover to [Successor Name]
HR coordinator [HR Name]
Letter · Word
Notice Period Letter
Download .docx

Item	Details
Notice start date	[Date]
Notice period as per appointment letter	[Notice Period]
Last working day	[Last Working Day]
Handover to	[Successor Name]
HR coordinator	[HR Name]

Full & Final Settlement Letter

Preview of the letter

Subject: Full and Final Settlement of Your Dues

What this template includes

When to use it

How to customise this template

HR tips

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Frequently asked questions

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