The Acknowledgement Letter For Receiving Full And Final Settlement is a crucial document in Pakistani employment law that serves as conclusive evidence of the settlement of all employment-related dues and obligations. It is typically used when an employee's service with a company ends, whether through resignation, retirement, or termination. The document comprehensively covers all financial aspects including final salary, gratuity, leave encashment, and any other benefits due to the employee. It must comply with various Pakistani regulations including the Contract Act 1872, Industrial Relations Act 2012, and Income Tax Ordinance 2001. The letter's primary purpose is to protect both parties by documenting the complete settlement of dues and obtaining a release from future claims, making it an essential part of the employment termination process in Pakistan.
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1. Letter Header: Company letterhead, date, reference number, and address of the recipient
2. Subject Line: Clear indication that this is a Full and Final Settlement Acknowledgement
3. Employment Details: Employee's name, designation, employee ID, and duration of employment
4. Settlement Amount Declaration: Clear statement of the total settlement amount being acknowledged
5. Payment Details: Breakdown of the settlement amount including salary, benefits, and other compensations
6. Confirmation of Receipt: Express acknowledgment of receiving the full settlement amount
7. Release Statement: Declaration that no further claims exist against the employer
8. Signature Block: Space for employee signature, witness signature, and date
1. Outstanding Loans Declaration: Statement regarding any company loans or advances and their settlement
2. Company Property Return: Confirmation of returning company assets and properties
3. Non-Disclosure Reminder: Reiteration of confidentiality obligations that survive employment
4. Tax Implications: Statement about tax deductions and employee's responsibility for tax compliance
5. Benefits Continuation: Details about any benefits that continue post-employment
6. Reference Agreement: Terms regarding future employment references if agreed upon
1. Payment Breakdown Schedule: Detailed itemization of all components of the final settlement amount
2. Company Property Checklist: List of company properties returned with their conditions noted
3. Benefits Statement: Detailed statement of any benefits, their status and continuation terms if applicable
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