Full and Final Settlement

- Odoo

Full and Final settlement Applicability: All employees

Information Gathered :

  1. Employee writes e-mail directly to Manager marking copy to HR. Once Manager approves, HR will process
  2. Employee sends e-mail to Manager who approves the same & forwards a copy to the HR to process
  3. **Note: If employee resigns without notice, no Full & Final Settlement will be processed

Resignation Date: Date on which the employee applies for resignation will be considered, even not Manager approves at a later date

** Note: Notice period across Grades & Ranks is 1 month from Date of Resignation

Properties taken back/surrendered by employee upon resignation

Bag Sim Card Tablet Laptop
Company ID Card Visiting Card Product Brochure

 

Notice Period Scenarios:

Scenario 1: Normal employee less than 5 years in the company – no advance taken (resigned within 1 year)

  1. Joining Date: 20-05-2018
  2. Resignation Date: 20-06-2019
  3. Relieving Date: 20-07-2019
  4. Salary for June 2019 would be computed
  5. Salary for July 2019 for 20 days would be computed
  6. EPF & ESI (if applicable) would be computed proportionate to number of days
  7. Professional Tax for the period April 2019 – July 2019 based on earned gross would be computed and deducted
  8. TDS (if applicable) would be taken into consideration for the period April 2019 to July 2019 would be deducted proportionately and deducted
  9. Full & Final Settlement Cheque would be given after 90 working days
  10. Full & Final Settlement Cheque would be sent as courier to the communication address
  11. Leave encashment not applicable
  12. Bonus not applicable

Scenario 2: Normal employee more than 5 years in the company – no advance taken

  1. Resignation Date: 20-06-2019
  2. Relieving Date: 20-07-2019
  3. Salary for June 2019 would be computed
  4. Salary for July 2019 for 20 days would be computed
  5. EPF & ESI (if applicable) would be computed proportionate to number of days
  6. Professional Tax for the period April 2019 – July 2019 based on earned gross would be computed and deducted
  7. TDS (if applicable) would be taken into consideration for the period April 2019 to July 2019 would be deducted proportionately and deducted
  8. Leave encashment: (Basic + DA)*no of days/30 (subject) to maximum of 100 days
  9. Bonus would have been paid (per Bonus policy if applicable) till 2018
  10. Gratuity: A fund is created with State Bank of India with a Gratuity Number for the employee. Last drawn (Basic + DA)*15/26*no of years would be alone given
  11. Gratuity: The above mentioned amount would be given in the name of Company via cheque
  12. Gratuity: Company would deposit the money into their bank account & for the same amount give a cheque to the employee
  13. Super Annuation: Applicable only for employees joined on or before a specific date
  14. Super Annuation: A fund is created with State Bank of India with a Super Annuation Number for the employee
  15. Super Annuation: A computation methodology developed by SBI.
  16. Super Annuation: This amount would be given in the name of the employee
  17. Full & Final Settlement Cheque would be given after 90 working days
  18. Full & Final Settlement Cheque would be sent as courier to the communication address
  19. Gratuity cheque would be sent as courier to the communication address
  20. Super Annuation cheque would be sent as courier to the communication address

**Note:

  1. Salary Entry during his month of resignation would have already been posted
  2. The Other components like Salary Advance, Leave Encashment, LTA, Bonus, Gratuity etc will have to be taken into consideration for accounting entry
Account Code Particular Debit Credit
23402 Salary Payable 10000
51005 Leave Encashment Exp 5000
51010 Bonus Exp 10000
51015 LTA Exp 10000
51020 Gratuity Exp 25000
15902 Salary Advance 15000
23520 Leave Encashment Payable 5000
23521 Bonus Payable 10000
23522 LTA Payable 10000
23523 Gratuity Payable 25000
21003 Bank Account 25000
Total 75000 75000