As the terms suggests, no due letter or a due certificate is a formal letter intimating an employee that nothing is due from the company to him / her, particularly with respect to money owed. Such a document, more often than not, is executed at the time an exit and confirms that all dues of the employee have been paid, in full and final settlement. Sample of a no due letter format is reproduced hereunder:
“I [EMPLOYEE NAME] d/o [FATHER’s NAME], resident of [PERMANENT ADDRESS] do hereby solemnly affirm and declare as under:
- I worked with [COMPAN NAME] at their office situated at [ADDRESS] (the “Company”) from [DATE] to [DATE] as [DESIGNATION].
- By signing this document I declare that nothing is pending or due from the Company towards me.
- I do not have anything against the Company, whether monetarily or otherwise and am satisfied with my tenure at the Company.
- I further declare that I have complied, and will continue to comply with all terms of the employment agreement dated ______________________, signed by me with the Company.
I further acknowledge that I have received a copy of this document and have signed it voluntarily.”
By signing the above document, an employee acknowledges that he has nothing due from the company. Such documents are very important to have signed, in light of employee disputes. This prevents frivolous litigation whereby and employee at a later stage can claim that the company owed him money. As the dictionary meaning of owed means, an obligation to pay, the employee allows a company to forgo this obligation.
In addition to a no due letter, at the time of relieving, an employee is provided with an experience letter in which the said employee is rated as “satisfactory employee” or “excellent employee” . This is to let the other company know his performance with his past company.
Following is another example of a simple no due letter:
Further to my resignation letter, I hereby acknowledge that all settlements have been made and I have submitted all the documents and assets belonging to [COMPANY NAME]. I also declare that the company has cleared all my outstanding dues with respect to full and final settlement of my account.
For more information or a free sample of a no due letter format you could visit Hr Policies. Here you will not only find no due letter format, which is free to download, but more than 500 legally correct HR documents related to an organization’s human resource needs such as employment contracts, legally correct leave policy, employee policy manual besides a number of forms, letters and check lists, all specifically drafted for human resource professionals in an attempt to simplify human resource documentation need. All HR documents on the site are drafted by our in-house legal experts and therefore legally correct.