How to Process a Full and Final Settlement (FnF) in greytHR
When an employee resigns or retires, the company settles all pending dues — unpaid salary, leave encashment, notice pay, bonuses and gratuity, minus any deductions and recoveries. This is the Full and Final Settlement (FnF). In greytHR, payroll admins process it under Payroll > Payroll Inputs > Final Settlement. This guide covers the FnF process step by step and what the settlement includes. National IT Service is an authorised greytHR partner that runs payroll and exit settlements for Indian businesses.
Open the Final Settlement screen: From the greytHR Admin portal, hover over the 9-dots menu and go to Payroll > Payroll Inputs > Final Settlement. This opens the guided FnF workflow.
Only payroll admins can process FnF
Complete any pending attendance and leave updates first
Select the separated employee: Under Step 1: Employee, select the Separated Employee radio button and choose the employee whose settlement you are processing.
Mark the employee as separated/resigned before FnF
Confirm the last working day is correct in their record
Enter resignation details: Under Step 2: Resignation Details, set the Resignation Submitted On date, the Leaving Date (last working day), the Leaving Reason, and the Settlement Date.
The leaving date drives salary and leave calculations
The settlement date is when dues are paid out
Configure notice pay: Under Step 3: Notice Pay, select the Notice Required checkbox to activate the notice period, and enter the number of notice days to be served in the Notice Period box. greytHR computes notice pay recovery or payout accordingly.
Set notice recovery if the notice period is not fully served
Notice pay rules should match your appointment letter
Review the settlement components: greytHR calculates the settlement from unpaid salary for the final period, leave encashment, notice pay, bonuses/incentives, gratuity (if eligible), minus statutory deductions, TDS and recovery of any outstanding loans or advances.
Verify leave encashment against the final leave balance
Check gratuity eligibility (usually 5 years of service)
Finish and release the settlement: Click Finish to complete the full and final settlement. Generate the settlement statement / final payslip; the employee can view it in their ESS portal, and the net amount is paid on the settlement date.
Share the FnF statement with the employee for transparency
Keep the settlement on record for statutory and audit purposes
Frequently Asked Questions
How do I process a full and final settlement in greytHR?
From the Admin portal, go to Payroll > Payroll Inputs > Final Settlement. Select the separated employee (Step 1), enter resignation details and dates (Step 2), configure notice pay (Step 3), review the computed dues, and click Finish to complete the settlement.
What does a full and final settlement include?
FnF typically includes unpaid salary for the last period, leave encashment, notice pay (payout or recovery), pending bonuses or incentives, and gratuity if eligible — less statutory deductions, TDS and recovery of any outstanding loans or advances.
How long does full and final settlement take?
Timelines vary by company policy, but FnF is commonly settled within 30–45 days of the last working day, after clearances from all departments. greytHR speeds this up by computing all components automatically.
Can an employee see their FnF settlement in greytHR?
Yes. Once the settlement is processed and the final payslip / settlement statement is released, the employee can view and download it from their greytHR ESS portal (subject to your configuration).
Can National IT Service handle exit settlements in greytHR for us?
Yes. As an authorised greytHR partner we run monthly payroll and exit settlements — computing leave encashment, gratuity, notice pay and statutory dues correctly — with GST invoicing and pan-India support.
Want greytHR payroll and exit settlements handled accurately, every month? Talk to National IT Service — authorised greytHR partner.