Term · Explained
End-of-service benefit (gratuity, severance)
A payment to an employee on leaving after a period of service, called gratuity, severance, or end-of-service pay depending on the country.
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Exit
Full and final settlement (F&F)
The final payment of all dues to an employee after they leave.
- Topic
- Exit
- Read time
- 2 minutes
- Level
- Beginner
- Applies to
- HR teams and employees
What it means
It includes pending salary, payment for accrued leave, bonus, any end-of-service benefit, and other dues, less any permitted recoveries such as notice shortfall or unreturned advances. It is released after clearance.
Benefits
- Makes the exit process predictable and fair.
- Helps employees know what to expect.
- Reduces last-minute disputes.
- Supports faster settlement.
Example
- Last working day 30 April; F&F paid by 15 June, within the policy timeline.
Related terms
- Relieving letter
- Clearance
- End-of-service benefit
- Leave encashment
Rates, limits, and rules (for example for pensions, social insurance, and end-of-service pay) differ by country and company and change over time. Treat these as general explanations and confirm the current position where you operate before relying on them.
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Employee exit and offboarding checklist
A respectful, orderly exit process - resignation, handover, clearances, and full and final settlement.
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Total compensation (CTC)
The total yearly amount an employer spends on an employee. Called CTC in some countries and total compensation or total cost of employment in others.
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