Final Settlement refers to the complete financial closure of an employee’s employment term, including all pending payments, benefits, and obligations between the employer and employee upon termination. It encompasses calculating and disbursing the final paycheck, unused benefits, retirement contributions, and any other outstanding compensation or deductions.
The basics start with paying what’s owed. This means calculating every working day right up to the last one. Sometimes people forget about those partial months or extra days, but they matter. Every hour worked deserves its pay.
Think of this as a thank-you payment for long service. It’s not just a nice gesture – in many places, it’s the law. The longer someone’s worked, the more gratuity they get. It’s usually calculated based on their last drawn salary and years of service.
Most companies expect notice before leaving – usually 30 to 90 days. Sometimes it’s waived, sometimes it’s worked. Either way, it affects the final numbers.
