No Dues Certificate For Employee

Every year many employees leave their companies and join other organisations. When an employee leaves a company, the manager has to give a relieving letter. The relieving letter shows that the employee has been professionally relieved from their role. A company also provides a no-due certificate for employees when they leave the company.

The no dues form for the employee states that the employee is not required to clear any dues towards the company and is free to leave the company without any charges. It acts as proof that the employee left the company without being obligated to the company in any way.

Meaning of No Dues Certificate

An employee no-dues certificate is a document the company gives for resigning/terminating employees. It is issued to an employee working in private and government establishments that declares that the employee has no due pending towards the organisation.

The no dues certificate from an employer is duly signed by the employee and certain departments of the company with whom the employee has worked. It is a confirmation that the employee has handed over all the company assets, like SIM cards, phones, laptop, etc., and paid the entire amount that they own towards the company, like travel expense reimbursements, etc.

The no-dues certificate to an employee is an essential document for the company and the employee as it ensures that the full and final settlement of the employee is completed against the employer. In some companies, the no-due certificate is also known as the No Objection Certificate (NOC). It is issued not just in companies but also other places, such as a library certifying that all borrowed books are returned and fines are paid when a person decides to end the membership.

Contents of No Dues Certificate

A no-dues form for employees will include the following details:

• Name of the employee
• Employee ID
• Name of the department employee is working in
• Date of issue of the certificate
• Name of the departments from where the employee has to obtain the signature, such as:
  • Stores/purchase
  • Cashier
  • Information technology
  • Finance and accounts
  • Facilities department
  • Human resources
  • Bank loan clearance
• Signature of HR department head

No Dues Certificate Format For Employees

The no due certificate format for employees varies from company to company; however, the goal of the certificate is to show that the employee has cleared all the dues from all the required company departments. The general format of the employee no dues certificate format is given below:

How to Get a No Dues Certificate?

Employees resigning from the company should get the no dues certificate from the company’s HR department containing a declaration that there is no due pending against them. An employee needs to get the signature from the heads of concerned departments in the company, such as HR, finance and accounts, etc., and submit it to the HR department. The HR department will provide the relieving letter to the employee with the submitted no-due certificate.

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