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Free certificate template · Word

No-Dues Certificate

A no-dues certificate is a single-page certificate issued by HR after all departments have cleared a leaving employee, stating that no money, assets or documents are pending from the employee. It closes the clearance stage and is often handed over with the relieving letter.

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Preview of the certificate

[Highlighted] = fill in
[Company Logo][Company Name]

NO DUES CERTIFICATE

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

TO WHOMSOEVER IT MAY CONCERN

This is to certify that [Employee Name], Employee ID [Employee ID], who worked with [Company Name] as [Designation] in the [Department] department from [Date of Joining] to [Last Working Day], has completed all exit clearance formalities.

The following departments have confirmed that nothing is pending against the employee:

DepartmentClearance DateCleared By
Reporting Department[DD/MM/YYYY][Name]
Information Technology[DD/MM/YYYY][Name]
Administration[DD/MM/YYYY][Name]
Finance and Accounts[DD/MM/YYYY][Name]
Human Resources[DD/MM/YYYY][HR Name]

We confirm that the employee has returned all company assets and documents, and that there are no outstanding loans, advances or other dues payable by the employee to the company. The full and final settlement was completed on [DD/MM/YYYY].

This certificate is issued at the request of the employee for [purpose].

For [Company Name]
[Authorised Signatory]
[Designation]
(Company Seal)

What this template includes

  • Certificate heading and reference number
  • Employee identity and service dates
  • Statement that all departments have issued clearance
  • Confirmation that no assets, advances or loans are outstanding
  • Note on F&F status
  • Authorised signature and seal

When to use it

  • All exit clearance sign-offs have been received
  • A former employee needs proof of no pending dues for a new employer or bank
  • A bank or housing society needs confirmation that a staff loan is closed
  • Auditors want a summary certificate rather than the full clearance file

How to customise this template

  1. 1Issue only after every line of the exit clearance form is signed
  2. 2List the departments that cleared the employee
  3. 3Mention loan closure details if the certificate is for a bank
  4. 4Print on letterhead and add seal

HR tips

  • Do not issue a no-dues certificate while any recovery is open
  • Keep the underlying clearance forms on file
  • Match the dates to the relieving letter
  • Email a signed PDF to the employee's personal address

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Frequently asked questions

What is a no dues certificate for employees?+

It is a certificate from the employer confirming that the employee has returned all company property and has no outstanding financial or other dues with the company.

Who issues a no dues certificate?+

HR issues it after collecting clearances from IT, Admin, Finance and the employee's department.

Is a no dues certificate the same as an NOC?+

Not exactly. A no-dues certificate confirms nothing is pending. An NOC states that the company has no objection to a particular action, such as joining another employer.