Final settlement (full and final)
The last statement of money between a company and a leaving employee: what is owed to them and what they owe back.
A final settlement, often called full and final or F&F, gathers everything outstanding when someone leaves. It includes the prorated final month, leave that is paid out, notice pay where it applies, any fund balance, and the loans and recoveries netted against them.
It works best as one statement per leaver with every line showing its working. Tax is worked out across the year and not on the settlement alone, so the leaver’s year is right.
General information, not tax or legal advice.
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