Employee Clearance | Meaning and Definition

The meaning of employee Clearance means, when an employee resigns from their job. In addition, the company also agrees to pay the employee the remaining balance of their salary and any outstanding expenses or debts, known as FNF (Full and Final) settlement.

This usually happens when an employee has found a new job and is looking to leave on good terms. Moreover, it differs from redundancy or termination, as most workers are entitled to a minimum notice period and redundancy payment when made redundant.

However if the employee uses a company computer or other equipment, they must return it to the asset management department. Similarly, departments like finance, administration, and HR must clear paychecks, gratuity, EPF, and bonuses.