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greytHR provides clear and comprehensive steps to perform the final settlement of an employee, which is a recursive task of HR. You start from gathering leave details and proceed till generating payslip. This page helps you easily handle the settlement work without any gaps. The Settlement wizard will guide you through the process and take in to consideration various aspects such as notice pay, leave encashment, and ad-hoc deductions. Once the settlement is processed, the settlement sheets are automatically generated and ready for delivery. You can also lock the settlement to ensure that no further changes happen to these calculations.

In System Settings > Miscellaneous > Advanced Options (Advance Settings), select EMPLOYEEMANAGE from the Section drop-down list. Next, select Consider Notice Period in months check box. Now, the next time you resign an employee from the Resign Employee page, you are able to provide ordinal values such as 1 for Notice Period. The same reflects in the Settlement wizard. Here, the ordinal numbers you enter correspond to values in day-month next to the Notice Period field.

  1. Click Payroll > Payroll Inputs > Final Settlement or to directly perform this action, go to Actions > Payroll > Settle Resigned Employee.
    Figure 1: Viewing the Final Settlement page

Record displays for a given month if there is Final Settlement for one or more employees.

Click The Settle Employee button. to start the Settlement wizard.

  1. In the Employee page of the wizard, select an employee.
    The Employee page of the Settlement wizard.

    The list of separated employees is cumulative of previous months. To select an employee whose resignation details are not yet in the system, choose Search Employee.

    1. In the Resignation Details page, verify details for correctness.
      The Resignation Details page of the Settlement wizard.

  2. In the Notice Pay page, verify details for correctness.
    The Notice Pay page of the Settlement wizard.

    Select the Notice Required check box if required to enforce the notice.

    1. In the Work Days page, verify details for correctness.
      The Work Days page of the Settlement wizard.

      Note the messages associated with selected employee's unique data.

  3. In the Leave Encashment page, enter the Leave Type and days to encash as per your org's policy.
    The Leave Encashment page of the Settlement wizard.

    You can enter Leave Type and modify value in Encash Days.

    5. In the Remarks page, you can choose the preference to clear the IT declaration of the resigned employee as shown in the figure below.

Before you click Finish, you may revisit the previous steps. If you click Cancel then you will lose unsaved changes.

a. Select the desired option for the IT declaration of the resigned employees and click Save.

    1. The Settlement page displays with details after the settlement process runs.
      The Settlement details of selected employee.
    2. Click View Salary Info to be taken to the Salary page or click View Statement to download the settlement as PDF.

      Click Close to go to the Final Settlement page.

    3. The Final Settlement page displays as follows:
      The Final Settlement page with the new record.

      Click any of the icons along side the employees record to perform required action.

Watch how to process the final settlement for the employee(s) below:

Full & Final Settlement Process.mp4

Related Concepts

Final Settlement Concept