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Final settlement feature in FOX HR shall contain the following sections:

· Salary settlement

· Leave settlement

· Loan settlement

· End of service settlement

· Manual additions and deductions

Now, let us move on to see each section in detail:

Salary settlement: 

This shall be a grid displaying the salary settlement for the employee, as per the last day working day set for the employee under step No. 1 of the offboarding process. The grid shall have three columns (Item, Total, and deserved). The grid shall be categorized into four categories:

· Salary

· Additions

· Deductions

· Total salary: shall display the net amount of the deserved column after adding all the “Addition” items, subtracting all the “Deduction” items, and calculating all salary elements.

Leave Settlement: 

This shall be a grid displaying the annual leave balance settlement for the employee. The grid shall have three columns:

· Leave Balance: shall be the current annual leave balance of the employee.

· Daily pay: shall be the deserved daily pay of the employee, the full monthly salary divided by 30 days.

· Compensated days: shall be the number of annual leave days to be compensated.

· Total compensation: shall be a final row to calculate and display the leave compensation amount, the compensated days multiplied by the daily pay.

Loan Settlement: 

This shall be a grid displaying all pending loans of the employee. The grid shall have four columns:

· Loan Type

· Total Amount: shall be the original total amount of the loan.

· Remaining Amount: The loan’s currently pending amount after deducting paid installments.

· Action: There will be a hyperlink “Add Settlement” in front of each pending loan to settle the loan if the loan has been paid in cash. This hyperlink shall trigger a “Loan Settlement” pop-up containing the following fields:

• Apply date: the date of the settlement

• Settlement Amount: the settlement amount, which shall not be more than the pending amount.

• Description: notes of the settlement.

• Save button: shall register the settlement and update the pending amount in the “Loan Settlement” grid.

End of Service Settlement: 

This shall display the deserved end of service settlement based on the employee’s period of employment and the selected “Off-boarding Reason” under step No. 1 of the off-boarding process. The grid shall have three columns:

· Employment Period: shall display the employee’s employment period from the joining date until the off-boarding date selected under step No. 1 of the off-boarding process, including both mentioned days. The value shall be displayed in “X Years X Months X Days” format.

· Off-boarding Reason: shall be the selected off-boarding reason under step No. 1 of the off-boarding process.

· End of Service Amount: shall be the deserved amount based on the employment period and the off-boarding reason.

Manual Additions and Deductions: 

This shall enable the user to manually add additions or deductions to the final settlement of the employee. The grid shall have the following columns:

· Item: shall be the type of record (Addition, Deduction).

· Type: shall be the type of addition or deduction.

· Amount: shall be the amount of the addition or deduction.

· Description: shall be the provided description for the addition or deduction.

Final Settlement Amount: A label shall display the net settlement amount after performing all calculations.

Save & continue shall be the final step in the off-boarding process, this button shall trigger a confirmation pop-up to inform the user that this step cannot be rolled back. Once confirmed, the system shall complete the following functions automatically:

· Employee shall be marked “Inactive.”

· The final settlement report of the employee shall be generated.

· A final settlement payment task shall be created and assigned to the predefined user under HR Policy Management – Payroll Management.

· The system shall guide the user to the “Off-boarding Summary” page.

To sum up

The final settlement process in FOX HR enables HR departments to carry out the employee offboarding process easily by effectively managing employee settlements.