Settlement Approvals
When an EOR employee is offboarded, Omnivoo calculates a Full & Final (F&F) settlement — the complete payout the employee is entitled to upon separation. As the employer, you need to review the settlement breakdown and approve it before the final payment is processed.
This page explains what goes into a settlement, how to review it, and what happens after you approve.
What Is a Full & Final Settlement?
A Full & Final settlement is the last financial transaction between an employer and a departing employee. It accounts for everything the employee has earned but not yet received, minus anything they owe.
In India, F&F settlements are governed by labor law and must include specific components depending on the reason for separation, the employee's tenure, and their salary structure.
Omnivoo calculates the settlement automatically based on the employee's engagement data, salary structure, and leave balances. You do not need to compute any of these figures manually.
How to Access Settlement Approvals
Step 1: Navigate to the Settlement Approvals Page
From the main menu, go to the EOR section. When an employee is offboarded, a settlement will be generated and linked from the EOR Dashboard. Click through to the Settlement Approvals page.
If no employees have been offboarded yet, you will see an empty state that reads "Full & Final settlements will appear here when employees are offboarded."
Step 2: Review the Settlement
The settlement page displays a complete breakdown organized into three sections: summary cards, earnings, and deductions.
Summary Cards
At the top of the page, you will see three cards:
| Card | What It Shows |
|---|---|
| Status | The current status of the settlement — pending, approved, or paid. |
| Net Settlement | The final amount payable to the employee after all deductions. |
| Termination Date | The date the employee's engagement was terminated. |
Employee Details
Below the summary, you will find the employee's information:
- Name and Email — The departing employee.
- Last Working Day — Their final day of active work (may differ from termination date if they served a notice period).
- Reason — The reason for separation (resignation, termination, etc.).
Step 3: Review the Earnings Breakdown
The Earnings section shows everything the employee is entitled to receive:
| Component | Description |
|---|---|
| Pro-rata Salary | Salary earned for days worked in the final month that have not yet been paid. |
| Leave Encashment | Cash value of unused leave days the employee had accumulated. |
| Gratuity | Lump-sum payment for employees with 5+ years of tenure. Shows an "Eligible" or "Not Eligible" badge. |
| Notice Period Pay | If the employer terminated the employee without requiring them to serve the full notice period, this compensates for the remaining notice days. |
| Bonus Payable | Any earned but unpaid bonuses. |
| Reimbursements | Pending expense reimbursements. |
| Total Earnings | Sum of all components above. |
Gratuity is only payable to employees who have completed 5 or more years of continuous service. The settlement page shows a badge next to the Gratuity line indicating whether the employee qualifies. If they do not qualify, the gratuity amount will be zero.
Step 4: Review the Deductions Breakdown
The Deductions section shows amounts that will be subtracted from the settlement:
| Deduction | Description |
|---|---|
| Advance Recovery | Any salary advances or loans that the employee had received and not yet repaid. |
| Notice Period Shortfall | If the employee resigned without serving the full notice period, this deducts the equivalent salary for the unserved days. |
| Other Deductions | Any other amounts owed by the employee (equipment charges, training bond recovery, etc.). |
| Total Deductions | Sum of all deductions above. |
Step 5: Confirm the Net Settlement
The Net Settlement Amount is displayed prominently at the bottom — this is the total earnings minus total deductions. If the employee had a long tenure, the tenure in years is also shown.
Review this final number carefully. This is the exact amount that will be paid to the employee once you approve.
Step 6: Approve the Settlement
If the settlement status is pending, you will see an "Approve Settlement" button. Click it to open a confirmation dialog.
The confirmation dialog shows:
- The net settlement amount
- The employee's name
- A clear warning that this action cannot be undone
Click "Confirm Approval" to approve. The status will change from pending to approved, and Omnivoo will process the payment.
Settlement approval is irreversible. Once approved, the payment will be initiated and cannot be recalled. Review all earnings and deductions carefully before confirming.
Settlement Statuses
| Status | Meaning |
|---|---|
| Pending | Settlement has been calculated but not yet approved by the employer. You can review and approve. |
| Approved | You have approved the settlement. Omnivoo is processing the payment. |
| Paid | The settlement amount has been disbursed to the employee's bank account. |
Frequently Asked Questions
When does a settlement get created?
A settlement is automatically created when you initiate the offboarding process for an EOR employee. You do not need to request it manually.
Can I modify the settlement amounts?
No. The settlement is calculated by Omnivoo based on the employee's actual salary data, leave balances, tenure, and contractual terms. If you believe a figure is incorrect, contact Omnivoo support before approving.
How long does it take for the employee to receive payment?
Once approved, the payment is typically processed within 2-3 business days, depending on banking timelines.
What if the employee disputes the settlement?
If the employee raises concerns about the settlement, contact Omnivoo support. We will review the calculation and provide documentation for each component.
What's Next?
- Employee Offboarding — Learn about the full offboarding process.
- Full & Final Settlement — Deep dive into how settlements are calculated.
- Leave Policies — Understand how leave balances affect encashment.