Full and Final Settlement (FnF) is the process of clearing all dues when an employee exits an organization. This includes unpaid salary, bonuses, incentives, leave encashment, gratuity, provident fund (PF) contributions, and tax deductions. The process typically follows company policies and legal compliance requirements to ensure a smooth transition.

In external workforce management, FnF settlement is crucial for contract workers, gig employees, and consultants to ensure accurate payroll closure, compliance with labor laws, and transparent financial reconciliation. Automating FnF settlements through payroll management systems helps businesses reduce errors, ensure timely payouts, and maintain workforce trust.