Glossary
What is full and final settlement (FnF)?
Also known as: FnF, F&F settlement.
Full and final settlement, or FnF, is the process of closing out everything owed between an employer and an employee who is leaving: final salary, payment for unused leave, recoveries and deductions, and any gratuity or other end-of-service amount.
FnF settles the account on the way out. It nets the last pay period, encashment of any unused leave, outstanding reimbursements and advances, notice-period adjustments and statutory amounts into a single closing figure, issued with the final documents.
Getting FnF right matters because it is the last financial interaction with a departing employee and a common source of disputes. Working the numbers through a settlement calculator, rather than by hand, keeps the components visible and checkable.
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