Holding back of Full and Final settlement


Please can i request your inputs on the following.

One of our employee has left the organization on 31st Dec 2023 but the employee has not returned the company assets (laptop and charger). The employee’s F&F is not yet paid out, so as an Employer can we hold on to this payment until the company asset is handed over. Please also note that the F&F includes Gratuity component, so from a compliance and legal point of view wanted your inputs if the F&F payout can be held back. Also for how long can be payment be held back.

Thank you.


It is a clear case of absconding. So ideally the organization shall initiate disciplinary proceedings.
Hope the HR policy has explicit rules regarding this.


Clearly it is the case of absconding. To facilitate a smooth resolution, you can calculate the cost of the outstanding assets.
Deduct the asset cost from F&F and settle the remaining payment.
Clearly communicate the remaining settlement amount after deducting the asset cost to the employee in email as we value transparency, and it is crucial to resolve this matter promptly.
In an email to the employee clearly mention that his/her recent actions have lead you to classify their status as “absconding.” In light of this, you need to address the company assets that are currently in their possession. (write down the entire list to him/her with their projected cost.


We can hold the F&F and company will not release experience letter, relieving letter, employment verification feedback(Negative).

when any employee join our company we have Fixed Asset Form at the time of joining employee has to fill that form you can start this practice in your company as well.