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Settlement amounts are typically calculated by considering various economic damages such as medical expenses, lost wages, and out of pocket expenses from the injury. However non-economic factors should also play a significant role. Non-economic factors might include pain and suffering and loss of quality of life.

What is the Full and Final settlement? Full and final settlement is the process followed by an employer when an employee resigns from the company. These proceedings include the employee's last month's salary plus any other additional earnings or deductions.

February 8, 2022 7 Mins Read. Full and final settlement is the process of calculating all the dues payable to an employee who resigns, retires, or is removed by the management. The settlement process is not just limited to the salary drawn by the employee but also deductions.

Usually, 30-45 days is ideal to pay the total and absolute compensation. The HR unit is usually in charge of handling this process. The FnF settlement process usually takes a month to be completed from the date of the employee's resignation.

(number of days of non-availed leaves * basic salary) / 26 days ( Avg paid days in a month). As per Section 7 (3) of the Payment of Gratuity Act 1972, Gratuity should be offered within 30 days of the resignation.

The full and final settlement includes the unpaid salary for the number of days for which the employee has worked for since his resignation date and his last working day.

What is full and final settlement? Whether an employee resigns from the job or is let go by the management, they are paid all the dues for their service till the last working day as FnF or full and final settlement.