Employee Clearance, also known as an FNF (full and final) settlement, is when an employee resigns from their job and the company agrees to pay them the remaining balance of their salary and any outstanding expenses or debts that the company may owe to the employee.
This usually happens when an employee has found a new job and is looking to leave on good terms. It’s important to note that employee clearance should not be confused with redundancy or firing – in most cases, employees are eligible for a minimum notice period and redundancy payment if they are made redundant.
If the employee uses a company computer or other equipment, they must return it to the asset management department. Paychecks, gratuity EPF, and bonuses must all be cleared with offices like finance, administration, and HR.
The employee clearance procedure begins right after the acceptance of resignation. It is important to keep in mind that the employee still has access to company information and property until the final day of work. To ensure a smooth transition, it is recommended that the soon-to-be former employee be relieved of all duties and responsibilities as soon as possible.