Final Settlement

Final Settlement is referred to as the final statement of the financial settlement between an employee and an organization when the employee is no longer employed and exits the organization.

The final settlement will have all details about the money which is to be paid by the employee to the organization, i.e. loans or any other costs, related to the employment to be recovered from the employee.

It will also have the amounts due to be paid by the organization to the employee, usually severance pay or gratuity,  any annual leave entitlement encashments.

Final settlement slips are normally issued by HR departments when an employee exits which have all details and how the company actually arrived at the final settlement figures.