How to Issue Final Settlement & Relieving Letter

📂 Category: Human Resources

📁 Subcategory: Employee Exit Management

📝 SOP Title: How to Issue Final Settlement & Relieving Letter

---

🎯 Objective:

To ensure timely and accurate closure of an employee’s exit process by issuing the final settlement and relieving letter within the specified time.

---

👥 Roles & Responsibilities:

Role	Responsibility
HR	Calculates final dues via Petpooja, drafts relieving letter, and shares both via email

---

🛠️ Tools Required:

• Petpooja HRMS – For salary calculation

• Google Docs – To generate the relieving letter

• Email – To send documents to the exiting employee

---

📅 Step-by-Step Process:

✅ Step 1: Confirm Exit

• Verify employee's last working day from the resignation tracker

• Ensure exit interview and handover are complete

✅ Step 2: Calculate Final Settlement

• Log into Petpooja HRMS

• Go to: Payroll → Exit Settlement

• Components included:

  • Pending salary till last working day

  • Applicable deductions (LOP, penalties, etc.)

  • Note: Earned leave is NOT paid out at Cashkr

✅ Step 3: Draft Relieving Letter

• Use the standard template

• Include:

  • Full name and designation

  • Date of joining and last working day

  • Confirmation of relieving and no dues

• Save as PDF and name file:
  RelievingLetter_[EmployeeName]_[YYYY-MM-DD].pdf

✅ Step 4: Send via Email

• Subject: Final Settlement & Relieving Letter – [Employee Name]

• Attach:

  • Final Settlement Summary (PDF from Petpooja)

  • Relieving Letter (PDF from Docs)

• Email to employee’s personal ID within 5 days of LWD

✅ Step 5: Internal Storage

• Save documents in:
  Drive → HR → Employee Exits → [Employee Name] → Final Docs

---

📌 Notes:

• Final settlements are typically released on the 10th of the month

• HR should follow up with the finance team (if involved) for payout disbursal

• No earned leave encashment is processed at Cashkr