When an employee leaves the organization, Sarah carefully handles the final settlement process because this stage combines payroll accuracy, company policy, and legal responsibility.
Before closing the employee record, she reviews final salary, leave encashment, deductions, outstanding loans, and recoveries to ensure both the employee and company are settled fairly.
Final settlement is calculated successfully with all salary components, deductions, and recoveries summarized clearly for approval and payout.
| Failure | What the user sees | What happens next |
|---|---|---|
| Employee has unapproved leaves exist | Auto-reject or include based on policy | Finalize leave status before settlement |
| Employee has pending salary advance | Recovery amount added to settlement deductions | Deducted from final settlement payout |
| Negative leave balance | Additional deduction added to settlement summary | Final net pay recalculated automatically |
| Scenario | Behavior | Why |
|---|---|---|
| Employee resigns without completing notice period | Notice period deduction applied automatically | Supports company policy and contract enforcement |
| Employee deceased during active employment | Settlement routed to nominee or legal beneficiary | Supports compassionate and legally compliant settlement handling |
ZettaHRM
A modern HRM workspace for employee management, attendance tracking, leave approvals and structured day-to-day HR operations.