full and final settlement & incentives

Hi ,

Can incentive amount be paid after the full and final settlement of an employee. As employee 's full and final amount is due to pay but his incentive amount approval is still pending so in this case cant hold his full and final.

Kindly reply.

thanks & Regards,
sneha lakhmapure


Hi Sneha,

From my point of view, since it is called Full and Final settlement - then it should really be including all the benefits of the employee while leaving the company. You should stress this out to the approving manager for the incentive - so he will be forced to act asap…

Not to mention that in the FS form it says that the employee received all dues from the company … So it should really include all benefits.

Just my thoughts :slight_smile:


In general, it is not advisable to hold an employee’s full and final settlement while their incentive amount approval is still pending. The employee is entitled to receive their full and final settlement as per the terms and conditions of their employment contract, and any delay or hold-up in payment could be considered a breach of contract.

That being said, it is important to review the terms of the incentive plan to determine the timing and conditions of payment. If the incentive plan clearly states that the payment will be made after the full and final settlement, then it may be appropriate to delay the incentive payment until after the employee has received their full and final settlement.

However, if the incentive plan does not have any specific provisions regarding the timing of payment, or if it is unclear whether the payment should be made before or after the full and final settlement, it would be best to consult with a legal or HR professional before making any decisions. They can provide guidance on how to proceed and ensure that the company is following all relevant laws and regulations.

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Full & Final settlement means clearing the account of the employee. If the employer proceeds for the full & final settlement of any employee then it will include any incentive for which he is eligible.

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