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All-in-one HR platform · v2.0
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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
A no dues certificate records that a departing employee has returned company property and settled any amounts owed, department by department. This no dues certificate format doubles as the clearance form.
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The form is opened when the resignation is accepted and closed in the last days of notice. Each department head signs off their section. HR then issues the certificate, which feeds the full and final settlement and the relieving letter.
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The no dues certificate is an internal clearance record. The relieving letter is the external confirmation of release. Clearance usually comes first, and any amount recorded as due here appears as a recovery in the full and final statement.
Watch for itDo not leave the amount fields blank. A signature without a figure is the usual reason recoveries are disputed later.
Replace everything in [square brackets]. Have your own legal or HR adviser review the final wording for your organisation.
[COMPANY NAME] [Office address] | [Phone] | [Email] Ref: [HR/NOC/YYYY/NNN] Date: [DD Month YYYY] NO DUES CERTIFICATE Employee name: [Employee full name] Employee code: [Code] Designation: [Designation] Department: [Department] Date of resignation: [DD Month YYYY] Last working day: [DD Month YYYY] Department-wise clearance 1. Reporting manager Handover of work and documents completed: [Yes / No] Amount due, if any: Rs. [Amount] Name: [Name] Signature: ________ Date: [DD Month YYYY] 2. IT Laptop / desktop, accessories, data cards returned: [Yes / No] Email and system access revoked on: [DD Month YYYY] Amount due, if any: Rs. [Amount] Name: [Name] Signature: ________ Date: [DD Month YYYY] 3. Administration ID card, access card, keys, [other items] returned: [Yes / No] Amount due, if any: Rs. [Amount] Name: [Name] Signature: ________ Date: [DD Month YYYY] 4. Finance Salary advance / loan outstanding: Rs. [Amount] Travel or imprest advance outstanding: Rs. [Amount] Pending expense claims payable to employee: Rs. [Amount] Name: [Name] Signature: ________ Date: [DD Month YYYY] 5. Human resources Exit interview completed: [Yes / No] Notice period served: [Full / [N] days short] Name: [Name] Signature: ________ Date: [DD Month YYYY] Certification This is to certify that [Mr./Ms./Mx.] [Employee full name] has completed the exit clearance formalities and that, except as recorded above, there are no dues outstanding from [him/her/them] to the company as on [DD Month YYYY]. Amounts recorded above will be adjusted in the full and final settlement. For [COMPANY NAME] [Authorised Signatory] [Designation]
In exit contexts the terms are often used interchangeably. Both record that nothing is outstanding. An NOC can also mean permission for something else, such as taking up outside work.
Recoveries for amounts the employee owes, such as advances, are commonly adjusted in the settlement. Deductions from wages are regulated, so make sure each recovery is permitted and documented.
HR, in the personnel file, with a copy to payroll for the settlement.
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