Full and Final Settlement (F&F) in Haryana

F&F statement on employee exit — salary, leave encashment, gratuity, PF, recoveries, and mutual release.

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⚖️ Full and Final Settlement (F&F) stamp duty & registration in Haryana

  • Stamp duty: 7% of consideration
  • Registration fee: 1% of consideration
  • Validity: On signature by both parties, settles all claims arising from the employment relationship up to the date stated.
  • Regulator: Haryana Revenue & Disaster Management Department

💡 Stamp duty in Haryana is 5% for women buyers — 2% lower than the standard 7% rate.

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🎯 When you need a Full and Final Settlement (F&F) in Haryana

  • Exit settlement on resignation or termination
  • Mutual separation packages
  • Retirement / superannuation settlement
  • Layoff and retrenchment payouts
  • M&A-related exits and severance

❓ Frequently asked questions

Is an F&F settlement legally binding on the employee?

Yes — once signed, it operates as a mutual release. However, statutory entitlements (gratuity, PF, minimum wages, bonus, ESI) cannot be waived even by signature. Indian courts strike down F&F releases that purport to waive statutory dues.

When must the F&F be paid?

Section 17 of the Code on Wages, 2019 requires payment of wages on termination within two working days of the last working day. Many companies adopt a 30–45 day window for full-and-final due to clearance processes; faster is safer.

How is gratuity calculated?

Under the Payment of Gratuity Act, 1972: (Last drawn basic + DA) × 15 / 26 × completed years of service, payable on 5+ years of continuous service (or on death/disability with no minimum tenure). Capped at ₹20 lakh (private sector).

Is leave encashment taxable?

For non-government employees, leave encashment on retirement is exempt up to ₹25 lakh under Section 10(10AA) of the Income-tax Act, 1961 (CBDT Notification 2023). Encashment during service is fully taxable as salary.

Can the employer adjust notice shortfall against F&F?

Yes, if the appointment letter provides — but the deduction must be calculated on basic salary (not gross CTC) and reflected transparently on the F&F statement. Disputes go before the labour commissioner.

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