1.1 This policy establishes a comprehensive framework for the timely, accurate, and legally compliant processing of Full and Final (FNF) settlement for all employees separating from the Organization, irrespective of the mode of separation, including voluntary resignation, termination for cause, termination without cause, redundancy, retirement, superannuation, death in service, completion of fixed-term contract, and absconding or abandonment of employment. The policy ensures that all statutory and contractual dues are calculated correctly, that recoveries are lawfully applied, and that settlement payments are disbursed within the timelines prescribed by applicable law. This policy is designed to comply with the Payment of Wages Act, 1936, the Industrial Disputes Act, 1947, the Payment of Gratuity Act, 1972, the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, applicable state-specific Shops and Establishments Acts, and the terms of the employee's employment agreement.

1.2 This policy applies to all employees of the Organization across all locations and establishments in India, including full-time permanent employees, part-time employees, employees on fixed-term contracts, probationary employees, and trainees and apprentices to the extent that statutory settlement obligations apply. The policy governs the end-to-end FNF settlement process, from the initiation of separation and calculation of dues and recoveries, through approval and disbursement of the settlement amount, to the issuance of separation documents including the relieving letter, experience certificate, and Form 16 or equivalent tax documentation. Where specific categories of employees are governed by separate settlement provisions under applicable labor legislation or collective bargaining agreements, those provisions shall take precedence to the extent of any conflict, and this policy shall apply supplementarily.

1.3 The Head of Human Resources shall serve as the policy owner and shall bear overall responsibility for ensuring that all FNF settlements are processed accurately, lawfully, and within the prescribed timelines. The policy owner shall coordinate with the Payroll department for computation of settlement amounts, tax calculations, and statutory deductions; the Finance department for fund allocation, payment processing, and accounting entries; the IT and Administration departments for asset recovery, access revocation, and clearance sign-offs; the Legal department for guidance on complex separations involving disputes, legal notices, or ongoing litigation; and the employee's reporting manager for confirmation of the last working day, handover completion, and any pending performance or disciplinary matters. The policy owner shall designate an FNF Settlement Coordinator within the HR Operations team to serve as the single point of contact for the separating employee and to manage the end-to-end clearance and settlement workflow.

2.1 The FNF settlement statement shall comprehensively enumerate all dues payable to the separating employee and all recoveries and deductions applicable, resulting in a net settlement amount. Dues payable shall include unpaid salary and allowances for the period from the last payroll date to the last working day, calculated on a per-day basis; encashment of earned leave and privilege leave accumulated as of the last working day, calculated at the rate of basic salary plus dearness allowance, or as specified in the Organization's leave policy; proportionate bonus under the Payment of Bonus Act, 1965, where the employee has worked for a minimum of 30 days in the accounting year; gratuity under the Payment of Gratuity Act, 1972, where the employee has completed 5 or more years of continuous service, calculated at the rate of 15 days' wages for every completed year of service or part thereof exceeding 6 months; notice pay in lieu of the notice period, where the Organization terminates the employee without requiring the full notice period to be served; and any pending expense reimbursements, travel claims, or other contractual entitlements.

2.2 The following recoveries and deductions shall be applied to the gross settlement amount to arrive at the net FNF payable: notice period shortfall recovery, where the employee resigns without serving the full contractual notice period and the Organization elects to recover the shortfall in lieu of notice; outstanding salary advances, personal loans, or emergency advances disbursed by the Organization and not yet repaid; cost of unreturned or damaged company assets, including laptops, mobile phones, identity cards, access cards, uniforms, and other equipment, to the extent that the cost is documented and lawfully recoverable; excess leave taken beyond the employee's entitlement, calculated at the per-day rate; the employee's contribution to the Employees' Provident Fund for the final period, which shall be remitted to the EPFO in accordance with statutory timelines; professional tax for the final period; income tax deducted at source on the settlement amount in accordance with the employee's applicable slab rate, computed on the basis of the projected total income for the financial year; and any other amounts that are lawfully recoverable under the terms of the employment agreement or applicable law, provided that total deductions do not exceed the limits prescribed by the Payment of Wages Act, 1936.

2.3 Gratuity shall be calculated and paid in accordance with the Payment of Gratuity Act, 1972, for all employees who have completed 5 or more years of continuous service with the Organization. The gratuity amount shall be computed at the rate of 15 days' wages, based on the last drawn basic salary plus dearness allowance, for every completed year of service or part thereof exceeding 6 months, subject to the statutory maximum prescribed under the Act. For employees covered under the Act who are terminated due to death or disablement, the minimum service requirement of 5 years shall not apply. For employees with less than 5 years of continuous service, gratuity shall be payable only if the Organization's HR policy or the individual employee's contract of employment expressly provides for payment of gratuity below the statutory threshold, or if the employee is separated due to superannuation, death, or disablement. The Payroll department shall compute the gratuity amount, obtain approval from the Head of HR and Finance, and ensure that payment is made within 30 days of the date on which the gratuity becomes payable, as required by the Act. Delayed payment shall attract interest at the rate prescribed by the appropriate government.

2.4 The FNF Settlement Coordinator shall prepare the detailed FNF settlement statement within 7 business days of the employee's confirmed last working day, in coordination with the Payroll and Finance departments. The statement shall itemise all gross dues payable, all recoveries and deductions applied, and the resulting net settlement amount, accompanied by a clear explanation of each line item and the basis of calculation. The draft settlement statement shall be shared with the separating employee for review, and the employee shall be given 5 business days to raise queries, request clarifications, or dispute any line item. Where a dispute arises, the FNF Settlement Coordinator shall coordinate with the relevant department to investigate and resolve the dispute within 5 business days. If the dispute cannot be resolved internally, the employee shall be informed of their right to approach the appropriate labor authority or court for adjudication. Uncontested settlement amounts shall not be withheld pending resolution of disputed items; the Organization shall process the undisputed portion within the prescribed timeline and shall settle the disputed portion within 15 business days of resolution.

3.1 The separating employee shall complete the Organization's multi-department clearance process before the FNF settlement can be finalised and processed. The clearance process shall include the return of all company assets in the employee's possession, including laptop, desktop, mobile phone, SIM card, identity card, access card, keys, parking permit, company credit card, and any other Organization property; completion of a comprehensive knowledge transfer and handover of all ongoing projects, tasks, responsibilities, and documentation to the designated successor or the employee's reporting manager; settlement of all outstanding salary advances, personal loans, and petty cash balances; clearance from the IT department confirming deletion of personal data from company devices and revocation of all system access, email accounts, and application credentials; clearance from the Administration department confirming return of physical assets and settlement of any facilities-related obligations; and clearance from the Finance department confirming that no outstanding expense claims, travel advances, or other financial obligations remain unresolved. The FNF Settlement Coordinator shall issue the clearance form to the separating employee on or before the last working day and shall track the completion of each clearance step.

3.2 Department heads, functional leads, and all designated clearance signatories shall complete their respective clearance sign-offs within 3 business days of the employee's confirmed last working day. The FNF Settlement Coordinator shall send reminders on the employee's last working day and on each subsequent business day until all clearances are received. Where a clearance signatory fails to respond within the prescribed 3-business-day window, the FNF Settlement Coordinator shall escalate the matter to the signatory's reporting manager and the policy owner. Failure by a department to complete clearance within the prescribed timeline shall not delay the processing of the FNF settlement beyond the statutory deadline. Where clearance is pending due to unreturned assets or outstanding amounts, the estimated cost or value shall be provisionally deducted from the settlement amount, and the deduction shall be reversed if the asset is subsequently returned or the amount is otherwise settled. The Organization shall not withhold the entire FNF settlement on account of a single pending clearance item; only the value directly attributable to the pending item may be withheld, subject to the deduction limits prescribed by the Payment of Wages Act, 1936.

3.3 The separating employee's reporting manager shall be responsible for ensuring that a complete and orderly handover of all work responsibilities, client relationships, project documentation, proprietary information, and institutional knowledge is completed before or on the employee's last working day. The handover shall include a written status summary of all ongoing projects, tasks, and deliverables; transfer of all client and stakeholder relationships to the designated successor, including introductions and communication of the transition; handover of all project files, documentation, templates, and work product, whether in physical or electronic form; transfer of access to all shared drives, project management tools, and collaboration platforms; a briefing on pending deadlines, commitments, and any open issues requiring follow-up; and a list of all passwords, access credentials, and system accounts to be transferred or deactivated. The reporting manager shall certify the completeness of the handover by signing the handover section of the clearance form and shall notify the FNF Settlement Coordinator of any outstanding handover items.

4.1 The net FNF settlement amount, after application of all lawful deductions and recoveries, shall be disbursed to the separating employee's registered bank account through the Organization's standard payroll banking channel within 30 calendar days of the employee's confirmed last working day, or within such shorter period as may be prescribed by the applicable state-specific Shops and Establishments Act or other governing legislation. Where the applicable law does not prescribe a specific timeline, the Organization shall endeavour to process the settlement within 30 calendar days as a matter of good practice. The Payment of Wages Act, 1936, requires that wages due upon termination be paid before the expiry of the second working day from the day of dismissal or removal; the Organization shall comply with this requirement for employees falling within the scope of the Act. For employees separated due to death, the settlement shall be paid to the employee's legal heir or nominee as recorded in the Organization's records, upon submission of the required legal documentation.

4.2 The Organization shall issue the following separation documents to the separating employee within the applicable timelines: a relieving letter confirming the employee's date of joining, last working day, designation at the time of separation, and confirmation that the employee has been relieved of duties, to be issued within 3 business days of the last working day; an experience certificate or service certificate documenting the employee's tenure, designations held, and a factual description of responsibilities, to be issued within 7 business days of the last working day; and Form 16 or Part B of Form 16, summarising the employee's income and tax deductions for the financial year, to be issued within the timelines prescribed by the Income Tax Act, 1961, and typically no later than 15 June following the end of the financial year. The Organization shall not withhold the relieving letter, experience certificate, or other separation documents as leverage to resolve pending FNF settlement disputes, asset recovery issues, or clearance delays. The employee's right to receive accurate separation documents is independent of any financial settlement matters.

4.3 In the event that the separating employee disputes any component of the FNF settlement amount, the employee shall raise the dispute in writing with the FNF Settlement Coordinator or the Head of Human Resources within 15 business days of receiving the settlement statement. The HR department shall acknowledge the dispute within 2 business days and shall investigate the matter in coordination with the Payroll and Finance departments. The HR department shall provide a written response to the employee within 10 business days of receiving the dispute, detailing the findings of the investigation and any proposed adjustments. Where the dispute is resolved in the employee's favour, the additional amount shall be processed and paid within 10 business days of the resolution. Where the dispute cannot be resolved through internal discussion, the employee shall be informed of their right to refer the matter to the appropriate labor authority, conciliation officer, or labor court under the Industrial Disputes Act, 1947, or the applicable state-specific dispute resolution mechanism. The Organization shall cooperate fully with any proceedings initiated by the employee before a statutory authority and shall produce all relevant records and documentation as required.

5.1 The Organization shall ensure that all FNF settlement calculations, deductions, payment timelines, and documentation comply with the following statutes and any amendments thereto: the Payment of Wages Act, 1936, which governs the timely payment of wages and limits permissible deductions; the Payment of Gratuity Act, 1972, which prescribes the formula, eligibility, timeline, and maximum gratuity payable; the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, which requires timely transfer or withdrawal of PF accumulations upon separation; the Payment of Bonus Act, 1965, which requires proportionate bonus payment for employees who have worked a minimum of 30 days; the Industrial Disputes Act, 1947, which governs the procedures for retrenchment, layoff, and closure and prescribes compensation payable; the applicable state-specific Shops and Establishments Act, which may impose additional requirements on payment timelines and separation procedures; and the Income Tax Act, 1961, which governs the tax treatment of settlement components and the issuance of Form 16. The Payroll department, in consultation with Legal Counsel, shall maintain a compliance matrix mapping each statutory requirement to the corresponding process step in the FNF workflow.

5.2 Any violation of this policy by Organization personnel, whether by act or omission, shall be subject to disciplinary action proportionate to the severity and nature of the violation. Violations include, but are not limited to, unauthorised withholding of settlement dues or separation documents, failure to process FNF settlements within the prescribed statutory or policy timelines, application of deductions that are not authorised by law or the employee's employment agreement, failure to share the settlement statement with the employee for review, inaccurate computation of settlement components due to negligence, and retaliating against an employee who disputes a settlement amount. The Organization acknowledges that delayed or improper settlement of FNF dues may expose the Organization to statutory penalties, including interest on delayed gratuity payments under the Payment of Gratuity Act, penalties for wage payment violations under the Payment of Wages Act, and compensation orders from labor courts under the Industrial Disputes Act. Disciplinary consequences for responsible personnel may include formal counselling, written warning, suspension, or termination of employment.

5.3 This policy shall be reviewed comprehensively at least once every 12 months by the policy owner in consultation with Legal Counsel, the Head of Finance, and the Payroll department. An interim review shall be triggered by any amendment to the Payment of Wages Act, Payment of Gratuity Act, Industrial Disputes Act, or any other applicable labor legislation; changes in statutory thresholds, rates, or timelines; the introduction of new labor codes that supersede existing legislation; the findings of an internal or external payroll or compliance audit; or a complaint or legal proceeding related to an FNF settlement that reveals a policy gap. Proposed amendments shall be reviewed by Legal Counsel for legal sufficiency, approved by the Head of Human Resources and the Chief Financial Officer, and communicated to all stakeholders at least 14 calendar days before the effective date. A complete version history shall be maintained as an appendix to this policy.