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Tips for this letter
- Itemize every component (salary, leave encashment, deductions) so the employee can verify the number, not just trust it.
- State the payment date and mode so this doubles as a payment confirmation once processed.
Full and Final Settlement Letter
Re: Full and Final Settlement Letter
Dear [Employee Name],
Please find below the full and final settlement of your dues following your exit from [Company Name] on [Last Working Date]:
Salary due: [Amount]
Leave encashment: [Amount]
Bonus/incentive (if applicable): [Amount]
Less: Deductions (recoveries, notice period shortfall, etc.): [Amount]
Net payable: [Net Amount]
This amount will be credited to your registered bank account by [Payment Date]. Form 16 for the current financial year will be shared separately.
Please treat this as confirmation that all dues stand settled.
Regards,
[Signatory Name], [Designation]
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