What is the Full and Final Settlement?
Full and Final Settlement is the process of settling all financial obligations between an employer and an employee at the time of termination or resignation. It includes the payment of any outstanding wages, bonuses, unused leave days, severance pay, and other entitlements, along with the deduction of any owed amounts such as loans or advances. Once the settlement is completed, both parties sign an agreement confirming that no further claims or payments are due from either side. This settlement ensures that the employee’s relationship with the employer is concluded in terms of financial matters.