Free template · Word and PDF · also called a no due certificate · updated 19 Oct 2026

No dues certificate format, cleared team by team.

A no dues certificate (also called a no due certificate or clearance certificate) states that an employee leaving owes the company nothing. This one is on letterhead, filled in here for Sanjay Mishra, whose last day at Paiteq was Fri 25 Sep 2026, and blank below it. It went out once his ID card came back; his letters and F&F didn't wait for it. Download it in Word, print it or save it as PDF.

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[Company name]

[Registered address] · [Phone or email]

Ref: [Reference number]
Date: [Date of issue]

[Employee's full name][Employee code][Designation], [Department]

Subject: No dues certificate

This is to certify that [Full name] has returned all company property, and that nothing is due from them to [Company name], as checked below.

Clearance by team

Last working day: [Date]
IT: [Laptop and accessories returned on (date)]; [access ended on (date)]
Admin: [ID card, keys and other items returned on (date)]
Finance: [No advance or loan outstanding / Advance of ₹ settled on (date)]
Expense claims: [None waiting / Paid with the F&F]
Handover: [Work handed over to (name) on (date)]
Recoveries: [None / ₹ for (item), agreed in writing on (date)]

This certificate does not affect any amount due to the employee in their full and final settlement, which is settled separately.

For [Company name],

[Name of the signatory][Designation], for [Company name]

The filled sample and the blank, with a margin note on every field

Paiteq Technologies

Bengaluru, Karnataka

Ref: PTQ/NDC/2026/012
Date: Mon 28 Sep 2026

Sanjay MishraPTQ-0087Accounts Executive, Finance

Subject: No dues certificate

This is to certify that Sanjay Mishra has returned all company property, and that nothing is due from him to Paiteq Technologies, as checked below.

Clearance by team

Last working day: Fri 25 Sep 2026; Core checkbecause the certificate refers to the exit it clears. The date should match the relieving letter.
IT: Laptop returned in good condition on Fri 25 Sep;
access ended Fri 25 Sep, 23:59; Core checkbecause the laptop and the access are the two things IT signs off. Access ends at the close of the last day, not earlier.
Admin: ID card and drawer key returned on Mon 28 Sep; Core checkbecause an item still out on the last day is cleared when it comes back. Sanjay's ID card came back three days later, and nothing else waited for it.
Finance: No travel advance, no claims waiting; checked Thu 24 Sep; Core checkbecause an open advance or loan is the most common real due. Name it and how it was settled, or say there is none.
Expense claims: None waiting; Good practicebecause claims the company owes the employee are settled too, usually with the F&F.
Handover: Month-end ledgers handed over to Nandini Ghosh; document uploaded Wed 23 Sep; Good practicebecause a named handover closes the question of work left undone.
Recoveries: None; Optionalbecause a recovery is allowed only as Code on Wages, 2019, s.18 (deductions which may be made from wages) permits, after the employee is heard where it is for damage or loss, with all deductions within 50% of wages. A notice-pay shortfall is also a recovery: settle it only as the appointment letter provides. Whether it can be set off against wages due on exit is a legal question.

This certificate does not affect any amount due to him in his full and final settlement, which is settled separately.

For [Company name],

Meenal JoshiFounder, for Paiteq Technologies

Paiteq Technologies

[Registered address] · [Phone or email]

Ref: [Reference number]
Date: [Date of issue]

[Employee's full name][Employee code][Designation], [Department]

Subject: No dues certificate

This is to certify that [Full name] has returned all company property, and that nothing is due from them to [Company name], as checked below.

Clearance by team

Last working day: [Date]; Core checkbecause the certificate refers to the exit it clears. The date should match the relieving letter.
IT: [Laptop and accessories returned on (date)]; [access ended on (date)]; Core checkbecause the laptop and the access are the two things IT signs off. Access ends at the close of the last day, not earlier.
Admin: [ID card, keys and other items returned on (date)]; Core checkbecause an item still out on the last day is cleared when it comes back. Sanjay's ID card came back three days later, and nothing else waited for it.
Finance: [No advance or loan outstanding / Advance of ₹ settled on (date)]; Core checkbecause an open advance or loan is the most common real due. Name it and how it was settled, or say there is none.
Expense claims: [None waiting / Paid with the F&F]; Good practicebecause claims the company owes the employee are settled too, usually with the F&F.
Handover: [Work handed over to (name) on (date)]; Good practicebecause a named handover closes the question of work left undone.
Recoveries: [None / ₹ for (item), agreed in writing on (date)]; Optionalbecause a recovery is allowed only as Code on Wages, 2019, s.18 (deductions which may be made from wages) permits, after the employee is heard where it is for damage or loss, with all deductions within 50% of wages. A notice-pay shortfall is also a recovery: settle it only as the appointment letter provides. Whether it can be set off against wages due on exit is a legal question.

This certificate does not affect any amount due to the employee in their full and final settlement, which is settled separately.

For [Company name],

[Name of the signatory][Designation], for [Company name]

Design preview · sample data · Paiteq Technologies. Margin notes never print.

Common practice; no Labour Code requires a no dues certificate · wages due on exit within 2 working days, Code on Wages, 2019, s.17(2), from 21 Nov 2025 · deductions under Code on Wages, 2019, s.18 (deductions which may be made from wages) · reviewed 6 Oct 2026

No. 01

The clearance

The checklist behind the certificate, and the dates it never holds up.

Sanjay's clearance had 6 lines. Four were clear on his last day, payroll's PF step comes after it by design, and the ID card came back on Mon 28 Sep. The certificate waited for the card. Nothing else did.

Sanjay Mishra's clearance, by team

Each team owns its line and its date. The relieving letter and the full and final settlement run on their own dates whatever is still open.

Handover · Nandini Ghosh: cleared

because month-end ledgers handed over: document uploaded Wed 23 Sep.

IT · Prakash Yadav: cleared

because laptop returned: good condition · Fri 25 Sep; access ends Fri 25 Sep, 23:59: scheduled, nothing cut early.

Admin · Fatima Syed: open on the last day

because iD card and drawer key: still with Sanjay on his last day · returned Mon 28 Sep.

Finance · Nandini Ghosh: cleared

because no travel advance, no claims waiting: checked Thu 24 Sep.

HR · Meenal Joshi: cleared

because exit interview: filled in by Sanjay himself.

Payroll · Priya Menon: after the last day

because mark the exit date with the PF office: after the last day.

Employee's request email

Former employees: list what you returned and when, and ask what is still open. In exits in LekhaHR each team sees its own clearance line, with an owner and a date.

Sample email · copy and fill the brackets

Subject: Request for no dues certificate: [Your full name], [Employee code]

Dear [HR contact's name],

My last working day was [date]. I have returned [laptop, ID card, keys] and handed over [work] to [name].

Please issue my no dues certificate, or tell me what is still open and who I should contact to close it. [If relevant: My travel advance of (₹ amount) was settled on (date).]

Thank you,
[Your full name]
[Personal phone or email]

No. 02

Field by field

What to write in each field.

A no dues certificate records that each team checked what it lent the employee, and that it came back. Each field is one team's sign-off, with a date.

01Last working day: Core check

because the certificate refers to the exit it clears. The date should match the relieving letter.

02IT: Core check

because the laptop and the access are the two things IT signs off. Access ends at the close of the last day, not earlier.

03Admin: Core check

because an item still out on the last day is cleared when it comes back. Sanjay's ID card came back three days later, and nothing else waited for it.

04Finance: Core check

because an open advance or loan is the most common real due. Name it and how it was settled, or say there is none.

05Expense claims: Good practice

because claims the company owes the employee are settled too, usually with the F&F.

06Handover: Good practice

because a named handover closes the question of work left undone.

07Recoveries: Optional

because a recovery is allowed only as Code on Wages, 2019, s.18 (deductions which may be made from wages) permits, after the employee is heard where it is for damage or loss, with all deductions within 50% of wages. A notice-pay shortfall is also a recovery: settle it only as the appointment letter provides. Whether it can be set off against wages due on exit is a legal question.

No. 03

The rule

Can an employer hold the F&F until no dues are cleared?

The wages due on exit have a legal date: within 2 working days of the last working day, under the Code on Wages, 2019, s.17(2), from 21 Nov 2025. A clearance still open on that date is a recovery to raise separately, deducted only as s.18 allows, after the employee is heard where it is for damage or loss, with all deductions within 50% of wages. No Labour Code requires a no dues certificate; it is common practice.

No dues certificate: practice

because no Labour Code requires it. Issue it once every line is clear.

Wages due on exit: within 2 working days

because Code on Wages, 2019, s.17(2) requires them within 2 working days of the last day. Sanjay's were due by Tue 29 Sep 2026, the day after his certificate.

Item not returned: a separate recovery

because Code on Wages, 2019, s.18 (deductions which may be made from wages) allows a deduction for loss only after the employee is heard, with all deductions within 50% of wages.

Relieving letter: on the last day

because it confirms the release. Tying it to clearances delays the person's next job and recovers nothing.

No. 04

Questions answered

What is a no dues certificate?

A letter from the employer stating that a leaving employee has returned company property and owes nothing: no laptop, ID card, advance or loan outstanding. It is issued after the clearance checklist is complete, and sits beside the relieving letter and experience letter, without holding either up.

Is a no dues certificate mandatory?

No Labour Code requires one. It is common practice, and some employers and lenders ask for it. What the law does fix is the date for the wages due on exit, within 2 working days; the full and final settlement guide works through it.

How does exit clearance work in a small company?

Each team gets one line with an owner and a due date: IT, admin, finance, the manager for handover and HR. Lines close as items come back. Exits in LekhaHR run the same checklist, and issue the letters and the F&F on their own dates whatever is still open.

No. 05

Common mistakes

Six ways exit clearance goes wrong.

Most of them come from treating the certificate as a gate.

01Holding the F&F for clearance

because the wages due on exit are due within 2 working days of the last day, cleared or not.

02Holding the relieving letter

because the person may lose their next job, and the company still hasn't got the item back.

03Deducting without a hearing

because a deduction for loss or damage is allowed only after the employee is heard, and only as s.18 lists.

04A 'no further claims' declaration before the F&F

because making the employee sign 'I have no further claims' before paying the F&F becomes the first exhibit in any dispute, and a signed waiver may not hold against dues the law requires.

05No dates on the lines

because 'cleared' with no date can't answer a question asked six months later.

06Access cut early

because the person is still working until the end of the last day. Schedule access to end then.

No. 06

Questions

Questions about no dues certificates

Is a no due certificate the same as a no dues certificate?

Yes. “No due certificate”, “no dues certificate” and “clearance certificate” are names for the same letter: it states that an employee leaving owes the company nothing, once each team has cleared them.

Who issues a no dues certificate?

HR, once each team has signed off: IT for the laptop and access, admin for the ID card and keys, finance for advances and loans, and the manager for the handover. In a 15-person company the founder usually signs every team's line, each with its own date. Use the letterhead, a reference number and the date of issue.

What if the employee hasn't returned an item?

Raise it as a recovery, separately. Tell the employee what is out and its value, hear them, and recover it only as the Code on Wages, s.18 allows, with all deductions within 50% of wages. The relieving letter and the F&F still go ahead on their dates. If the item is worth more than half the final wages, the balance is a separate claim: settle it by a signed agreement or write it off. Don't hold the F&F for it.

Is a no dues certificate the same as a clearance form?

They are two halves of one process. The clearance form is the internal checklist each team signs off. The no dues certificate is the letter the employee gets once every line is clear, stating that nothing is due from them.

Does a no dues certificate cover money the company owes the employee?

Not by itself. It records that the employee owes nothing. What the company owes, such as salary, leave encashment and claims, goes in the full and final settlement statement, which runs on its own legal date.

Is a no dues certificate the same as an NOC?

Close, but not the same. A no dues certificate says the employee owes the company nothing. An NOC (no objection certificate) says the company has no objection to something specific, such as joining another employer, taking up a second job or a visa application. Some companies combine the two in one exit letter; if a reader asks for an NOC, ask them what the objection would be about and write that one line.

How do I get a no dues certificate from my previous employer?

Email HR with your last working day, what you returned and when, and ask for the certificate or a list of what is still open. Return anything outstanding, settle any advance, and ask again with the dates. The request email on this page has the wording. Your relieving letter and F&F should not wait for it.

Can a new employer ask for a no dues certificate?

Some do, mostly in banking and finance. Most ask for the relieving letter and the experience letter instead. If a new employer asks, the former employer can issue it once the clearances are done.

When can a former employee transfer or withdraw their PF?

Only after the employer marks the date of exit on the EPFO portal, which should be done in the month the person leaves. Until then the member can neither transfer the balance to a new employer nor claim it. It is the item ex-employees chase most often, so put it on payroll's clearance line with a date.

Is there a no dues certificate format in Word?

Yes. Fill it in with the letter builder at the top of this page and download it as a filled Word (.docx) file, or print it or save it as PDF; nothing you type leaves your browser. The blank Word file is there too, with no email and no sign-up, and the filled sample shows it completed for one exit.

For employersLekhaHR is HR and payroll software for small Indian teams. See exits →