- Date : 09/11/2021
- Read: 5 mins
Finances are an important aspect of life, personal and professional both. This article talks about financial settlements that you must get done before you leave your company.
Leaving your current organisation is not easy. While you are excited about the new opportunity coming your way, you have a bittersweet feeling about leaving your colleagues behind and moving to a new setup, meeting new people, etc. The full and final settlement process just adds to the stress. Knowing about the financial settlements you need to pay attention to before quitting may help you have a smooth exit. Read ahead to know more.
The resignation checklist
Before you decide to go ahead with the exit interview, run through the following checklist.
- Get your next move ready or have a Plan B handy
- Understand your finances and rework them if necessary
- Have an emergency fund in place
- Work out a new budget
- Never disclose your intention to resign to colleagues
- Save work samples or keep a folder
- Make sure to eliminate personal information (passwords, etc.) from office assets
If you get these things sorted, the entire process will be easier.
How to leave a company?
If you have made up your mind to resign, follow this process:
- Talk to your boss about your upcoming resignation
- Make your resignation letter informative and definitive
- Schedule a final working day
- Serve due notice as specified in your job agreement
- Handover any official assets or material to the HR or concerned person
If you follow these steps, you will not find the process too cumbersome.
When to leave a company?
There may be numerous reasons for your decision to quit your job. You need to answer the exit interview questions truthfully and concisely. But what exactly happens during the exit interview? Well, it gives your employer a chance to talk with you when you have decided to quit. You are expected to provide a statement listing your reasons for resigning. The HR department may ask about your experience as well.
Here are some reasons why people decide to leave a company:
- Compromise of ethics
- Unhealthy work environment
- Underpaid or underused skills
- No potential for growth
What if you have got a better opportunity? You may discuss that with the company to ensure that you are not missing out on salary or promotional opportunities.
The full and final settlement
As part of the formalities, while leaving your job, you need to understand the process of Full and Final Settlement (FnF). The process following your exit interview is called the FnF Settlement.
Take this occasion to determine your bonus, tax deductions, and the basic salary for the month. Sometimes, the exit interview is part of the FnF settlement. During this process, you need to give up on any company assets in your possession - laptop, SIM card, Wi-Fi access, etc.
The FnF settlement policies will differ based on the company’s policy. The HR department is in charge of handling the process. The FnF settlement process usually takes a month to be completed from the date of the employee’s resignation so plan for your EMIs, monthly expenses well in advance It calls for knowledge and experience, and your company will have a detailed process for the same. Here are the financial settlements you need to document:
- Unpaid salary
- Leave encashment
- Professional tax
- Salary account
Before you exit the company, you need to cash in the number of days you have worked.
Documents required after leaving
After the consent order is given and your FnF settlement process is initiated, you can ask HR to provide you with the following documents:
- Salary slips
- Experience letter
- Original copies for your government documents
- TDS certificate
- Final paycheque for the month
- Copies of computation and acknowledgement of tax returns or TDS
- Form 16
- The approval letter and relieving letter
- Experience letter
These documents can also be discussed during the exit interview.
Now, you are fully equipped to hand in that resignation letter. But get every financial settlement sorted first - this will make the FnF settlement and exit interview easier. Make sure you get all the documents and consent orders. Most importantly, having information on your EPF and salary account is a must. Ask for the required letters and documents mentioned in this article.