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Frequently asked
What does an FnF settlement include?
Typically: gratuity (if eligible), encashment of unused earned leave, any pending bonus or incentive, minus a notice-pay shortfall if the employee leaves before completing their notice period.
When is gratuity payable on exit?
Generally after 5 years of continuous service, calculated as last drawn Basic + DA × 15/26 × completed years of service. Exceptions exist for exit due to death or disablement, where the 5-year rule doesn't apply.
How is notice-pay shortfall calculated?
If an employee leaves before serving their full notice period, many companies deduct a pro-rata amount based on the shortfall in days against the last drawn gross salary.
How soon should FnF be settled after the last working day?
There's no single central-law deadline, but recent guidance and many state shops & establishments rules point toward settling dues within about 45 days — check your state's rule and your own policy.