EMPLOYEE EXPERIENCE
Full & Final Settlement
At exit, combine unpaid salary, leave encashment, gratuity and recoveries such as loans and notice shortfall into one itemised statement.
IN SHORT
What is full & final settlement?
Full & Final Settlement
At exit, combine unpaid salary, leave encashment, gratuity and recoveries such as loans and notice shortfall into one itemised statement.
Employee Experience
Payslips, declarations, claims, loans, advances and exit settlement handled inside the cycle instead of through HR tickets and side spreadsheets.
THE PROBLEM
What goes wrong without full & final settlement
These are the problems payroll teams run into when this is handled on spreadsheets and email.
Settlement is assembled by hand from separate leave, loan and salary records and takes weeks.
An open loan or advance is not recovered before the final payment.
Gratuity eligibility is judged from memory, not from service records.
The exiting employee receives a net figure with no breakdown.
HOW IT WORKS
Full & Final Settlement inside a BizzField pay run
BizzField runs payroll in five steps: lock attendance, draft the register, review variance, approve, release. Here is how this capability works inside that cycle.
Single statement
Final salary, encashment, gratuity and recoveries combined into one computation.
Automatic recoveries
Open loans, advances and notice shortfall pulled in without a manual lookup.
Itemised output
The exiting employee receives a breakdown, not just a net amount.
BUILT FOR INDIA
Indian statutory rules, built into the cycle
PF, ESI, professional tax and TDS are calculated inside the pay run, and state rules follow the employee's work location.
PF wage ceiling
Employee and employer provident fund computed on basic wages, respecting the statutory monthly ceiling.
ESI eligibility
Applied to employees within the gross wage limit of ₹21,000 a month, with contribution-period rules handled across the cycle.
State-wise PT
Professional tax slabs resolved by work location rather than by registered head office.
TDS & Form 24Q
Projected annual tax spread across remaining months, with quarterly Form 24Q output.
QUESTIONS
Full & Final Settlement — Questions We Get Asked
Unpaid salary for the worked period, encashable leave, gratuity where the employee is eligible, and recoveries such as outstanding loans, advances and notice-period shortfall.
Leave balance, loan balances and final salary are already held in payroll, so the settlement is computed from those records at exit instead of being assembled from separate systems.
Yes. Revisions, approvals and reversals are recorded in an audit trail with the user and the time against each action, so a closed cycle can be explained later.
FILES FROM THE APPROVED PAY RUN
Bank Files And Statutory Returns, Built From The Approved Register
What is paid, what is deducted and what is reported come from the same approved register, so the files are not rebuilt in Excel after the run.
BANK TRANSFER
Bank Salary Files
Key Capabilities
- Output formatted to the bank's own upload specification
- Formats for HDFC, ICICI and SBI
- A separate file per bank when employees bank with different banks
- Released amounts kept against the cycle for matching to the bank statement
The bank-format salary file is generated from the approved register, so the amount credited and the amount on the payslip come from the same source.
See Bank Transfer SupportSTATUTORY & ACCOUNTING
Statutory Return Files And Accounting Export
Key Capabilities
- PF ECR file produced from the pay run
- ESI contribution return
- Form 24Q assembled from the quarter's cycles, not re-keyed
- General Ledger export for Tally Prime and Zoho Books
The PF electronic challan-cum-return, the ESI return and quarterly Form 24Q are produced from the same figures payroll deducted. Submission stays with your finance or compliance team. Payroll can also export General Ledger data for Tally Prime and Zoho Books.
See Government ReportsCONTROL & AUDIT TRAIL
Approval Controls And A Named Audit Trail
A pay cycle is released through maker-checker approval, and every edit, override, approval, rejection and reversal is recorded against a named user and timestamp.
SEGREGATION OF DUTIES
Maker-Checker Release
Key Capabilities
- Preparer and approver are distinct roles
- Sending a cycle back to draft requires a reason that stays with the cycle
- Entities that need finance and leadership sign-off can add approval levels
The person who prepared the cycle is not the person who releases it, and both actions are recorded against named users.
See Approval WorkflowAUDIT TRAIL
Named Audit Log
Key Capabilities
- Every action attributed to a user, not a shared account
- Logs kept against the cycle they belong to
- A closed period can be reconstructed from its own log
Edits, overrides, approvals and reversals are written to the audit log against a named user and timestamp, so a closed cycle can be explained from its own record.
See Payroll Audit LogsKEEP EXPLORING
Related Pages
Other payroll capabilities teams usually evaluate alongside this one.
Payslip Generation
Itemised payslips for every employee, generated from the approved register and published to self-service only on release.
ExploreEmployee Self-Service
Payslips, tax declarations and proofs, claims and salary history on demand, so payroll answers fewer routine tickets.
ExploreReimbursement Management
Employee claims move from submission through approval into the pay run, with each category taxed or exempted as configured.
ExploreLoan Management
Record a loan, build its instalment schedule and recover each EMI from payroll until closure, with any balance carried into final settlement.
ExploreSee full & final settlement on your own payroll data
Book a walkthrough with our Kanpur-based payroll team and run a sample cycle on your own salary structure.