Full and Final Settlement, Gratuity and PF Dues After Leaving a Job

Full and final settlement

A full and final (F&F) settlement covers unpaid salary, notice pay or any recovery for a short notice period, leave encashment, bonus and gratuity, minus genuine recoveries. The time and process usually come from the offer terms and company policy.

Gratuity

Under the Payment of Gratuity Act, 1972, gratuity is payable after five years of continuous service, except on death or disablement, at fifteen days' wages for each completed year. The employer must pay within thirty days of it becoming due, with interest for delay. The newer labour codes may change eligibility for some categories, such as fixed-term employees, so check the current position.

Provident fund

Employees can claim their provident fund online through the EPFO portal. Employers must deposit contributions, and a failure to deposit can be raised with the EPFO under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

If dues are withheld

Ask for an itemised F&F statement in writing, send a legal notice, and approach the labour authority or the Controlling Authority under the Gratuity Act. A civil recovery suit is also possible. Keep the offer letter, salary slips, resignation acceptance and emails.

Frequently asked questions

Can my employer hold the F&F until I return company assets?

It can adjust genuine dues, but it cannot hold lawful amounts indefinitely. Ask for an itemised statement showing each deduction.

How long does the employer have to pay gratuity?

Thirty days from when it becomes payable, failing which interest can be claimed.

Is a relieving letter a legal right?

It depends on your contract and the applicable rules. Ask for it in writing, because later employers often request it.

Discuss with Advocate Aayush Agarwal

This page provides general legal information, not case-specific advice. Request a Free Initial Consultation