Process accurate Full and Final settlements for every exiting employee — pending salary, leave encashment, gratuity, bonus, notice pay recovery, loan deductions and TDS — all computed automatically, with complete documentation generated in one click.
Full and Final settlement is the most complex payroll calculation an HR team performs. It involves multiple components — each with its own rules, eligibility criteria, and calculation formulas. Done manually, it takes hours and often results in errors that trigger post-exit disputes.
LeiPay's Full and Final settlement software computes every component automatically based on the employee's actual service data — salary, leave balances, loan outstandings, notice period compliance, gratuity eligibility, and TDS. The settlement statement, relieving letter, experience letter, and Form 16 are generated instantly once the calculation is approved.
LeiPay calculates every settlement component from live employee data — pending salary for days worked, leave encashment for earned leave balance, gratuity based on actual years of service and last drawn basic salary, pro-rated bonus, and any pending reimbursements. No manual formulas, no spreadsheet errors.
All outstanding recoveries are automatically identified and deducted from the final payout — loan balances, salary advance EMIs, notice period shortfall (if the employee leaves before completing notice), and any asset losses. The net payable amount is computed after all recoveries.
Once the settlement is approved, LeiPay generates all exit documents automatically — the Full and Final settlement statement with complete component breakdown, relieving letter with last working day, experience letter with designation and tenure, and Form 16 for the partial financial year.
See how LeiPay computes Full and Final settlements and generates all exit documents automatically — in a live demo.
When an employee submits resignation or is terminated, HR records the exit in LeiPay with the reason and last working day. The system immediately initiates the offboarding checklist — notice period tracking, asset return, and access revocation.
Notice period compliance is tracked automatically. If the employee serves the full notice period, no recovery is applied. If notice is short-served, LeiPay computes the notice pay recovery amount — days short multiplied by daily salary rate.
LeiPay pulls the employee's attendance record up to the last working day — computing exact days worked in the final month. Outstanding earned leave balance is identified for encashment calculation at the daily salary rate.
LeiPay calculates the complete settlement — pending salary, leave encashment, gratuity (Basic x 15/26 x Years of Service), pro-rated bonus, loan and advance outstandings, notice shortfall, and TDS on the final payout. Every number traces back to source data.
The computed settlement is routed through the configured approval chain — manager, HR, and finance. Each approver reviews the breakdown before approving. The final payout is released only after all required sign-offs are complete.
Once approved, all exit documents are generated instantly — F&F settlement statement, relieving letter, experience letter, and Form 16 for the partial year. Documents are available for download by HR and accessible to the employee through the self-service portal.
Every due — pending salary, leave encashment, gratuity, pro-rated bonus — is identified and included automatically. No component is forgotten because a formula was missed or a balance was not checked.
Gratuity is calculated using the statutory formula — Basic x 15/26 x Years of Service — based on actual tenure from joining date to last working day. No manual interpretation of eligibility or rounding of service years.
Outstanding loans, advance EMIs, and notice period shortfall are automatically identified from the employee's payroll record and deducted from the final payout. No recovery is missed because someone forgot to check a spreadsheet.
Relieving letter, experience letter, F&F statement, and Form 16 are generated simultaneously after approval. HR does not have to prepare each document separately — all are ready for issue on the last working day.
The detailed settlement statement shows every component with its calculation basis. Employees see exactly how their final amount was arrived at — eliminating the ambiguity that leads to post-exit disputes and legal notices.
Settlement components computed automatically per exit
Manual calculations needed for any settlement component
Exit documents generated — F&F, relieving, experience, Form 16
Settlement accuracy — every amount traces back to source data
See LeiPay's Full and Final settlement in action — gratuity, leave encashment, recoveries and documents — all in one live demo.
