Full & Final Settlement (FFS)

What is Full & Final Settlement (FFS)?

FFS or FNF – full & final settlement is defined as a process that’s said to happen when an employee wants to leave or take exit from an organization. FFS is the process of payroll calculation and payment of the final amount to an employee on exit from the company on resignation or termination.

This case happens when an employee is directly terminated to work ( due to performance issues) or willingly leaves the organization. In situations when this abrupt kind, one would define it as quitting or firing happens, then the employer is required to form a full and final settlement of all the remaining present in the lump sum amount of the salary.

FFS has proven to be significant, as it specializes in handling the payroll of employees. It is liable for taking care of payments that are needed to be cleared to the employee. This balance payment mostly includes bonuses, retirement benefits, gratuity, incentives, and other payroll components. Additionally, the company might need to recover assets such as mobile, laptops, etc.

Also, See: Employee Value Proposition | Payroll software | Payroll cost | Task management tools