How the Final Settlement process is carried out in FOX HR
Final Settlement process in FOX HR
The purpose of final settlement feature is to display calculations and settlements for the employee as well as to enable the user to review or update some of the information in the final settlement.
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:
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:
· 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.
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.
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.
Emerging Technologies and HRMS: Preparing for the future of Work
The post-COVID-19 pandemic era has brought magnanimous changes, significant disruptions, and enormous global breakthroughs, and businesses are getting utilized with the new ongoing innovative trends.
Powering HR for the Future with AI
Artificial Intelligence has been creeping into the modern workplace, and organizations are looking for ways to implement AI to uplift organizations and improve the employee experience. It has become the new normal in various industries across the globe.
Improving Workforce Management with Big Data
Integrating Big Data in workforce management can drive employee performance and enable businesses to stay ahead of the competition. Businesses that have implemented big data can have access to a large pool of employee data and business processes. These large data sets can be combined and analyzed to evaluate the ongoing developments in business performance.
What is Strategic Human Resource Management: HRMS and the future of Work
The future of work looks different. With the emergence of the COVID-19 pandemic, organizations have shifted to innovative, evolved, and digitized business processes.