What is F&F Settlement (Full and Final)?
Full and final (F&F) settlement is the last payment an employer makes when you leave: pending salary, encashment of leave, bonus or gratuity if due, less authorised deductions. Under the Code on Wages, 2019, wages payable on resignation, dismissal or retrenchment must be paid within two working days. Company policy cannot lower the Code's minimums.
Example
You resign and your last working day is a Friday. Your employer owes salary for the days worked, leave encashment, and, if you have five years of service, gratuity. Wages are due within two working days; gratuity within 30 days of becoming payable.
More detail
Read the full timeline in full and final settlement under the Labour Codes and notice period in India.
Related terms and guides
Sources
- The Code on Wages, 2019, https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf, live official page, linked for readers; link checked 2026-10-31
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes, https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf, live official page, linked for readers; link checked 2026-10-31
- Ministry of Labour and Employment, Additional FAQs on Labour Codes (as on 16 Mar 2026), https://www.labour.gov.in/static/uploads/2026/03/a4ccf4c6d97c4f1f36a6d83f8c64213d.pdf, live official page, linked for readers; link checked 2026-10-31
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.