Free HR Tool

No Dues Certificate Generator India 2026

Updated · GetHirePlus team

Track exit clearance department by department, then draft a no dues certificate, a clearance form or an employee's request letter. The tool totals pending dues, applies the 50% deduction cap and shows the date final wages fall due. No login needed.

A no dues certificate is the employer's written confirmation that an exiting employee has returned company assets, settled advances and completed handover, so nothing is owed either way except the final settlement. Issue it after every department signs off. Under the Code on Wages, 2019, final wages still fall due within two working days, clearance or not.

Sample details shown. Replace them with your own.

Company details
Optional.
Employee details
Used to count two working days for final wages. Holidays are not counted, so adjust for them.
Not printed. Used for the 50% deduction cap.
Department clearance
Signature
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Sample details shown. Use "Edit details" to change them.

This tool runs entirely in your browser. Nothing you type is uploaded or stored. It produces a draft for an HR team to review, not legal or tax advice. Spotted a wrong value or statement? Write to [email protected].

How a no dues clearance works in India

When an employee leaves, two things have to be settled. The company has to get back what it handed over: a laptop, an access card, documents, any salary advance or loan. And the employee has to be paid what is owed: salary for days worked, leave encashment, bonus and gratuity where due. The no dues process is the company's checklist for the first part. The certificate at the end is the written record that it is done.

No law requires a no dues certificate, so its format is up to the company. The rules that do apply are about wages. The four labour codes came into force on 21 November 2025 [1]. Under Section 17(2) of the Code on Wages, 2019, wages due to an employee who is removed, dismissed or retrenched, or who resigns, must be paid within two working days [2]. That deadline does not wait for the clearance form, which is why HR teams now start clearance during the notice period rather than after the last day [4].

The clearance sequence

  1. Start in the notice period. Send the clearance form to each department a week or two before the last working day, with the list of assets and advances on record for the employee.
  2. Handover first. The reporting manager confirms work, files and client contacts are handed over. This often decides when the rest can sign.
  3. Assets and access. IT collects the laptop and revokes email, VPN and tool accounts. Administration collects the ID card, access card and any other issued items.
  4. Money. Finance lists open advances, loans, unsettled travel claims and reimbursements. Each item is either recovered, set off in the final settlement, or written off with approval.
  5. HR closes. HR records the exit interview, checks the document file and issues the no dues certificate with the relieving and experience letters.

What the law says about recovering dues from final wages

RuleWhat it means for clearanceSource
Two working days for final wagesWages due on resignation, removal, dismissal, retrenchment or closure are paid within two working days. The tool counts two working days after the last working day using your weekly off. Whether the count runs from the last working day or the date of separation, and how holidays count, can depend on your state rules, so confirm it with your payroll adviser.Code on Wages, 2019, Section 17(2) [2] [5]
Permitted deductionsAn employer can deduct only what the Code allows, including recovery of advances and loans, and amounts for damage to or loss of goods expressly entrusted to the employee where the loss is directly attributable to the employee's neglect or default.Code on Wages, 2019, Section 18(1) [3]
50% capTotal deductions from wages in a wage period cannot exceed 50% of those wages. The tool shows how much of the pending dues fits inside the cap and how much has to be recovered another way.Code on Wages, 2019, Section 18(2) [3]
Other payoutsGratuity, statutory bonus and PF follow their own rules and timelines. Work them out separately with the full and final settlement calculator and the gratuity calculator.Code on Social Security, 2020 [1]
Read the cap carefully: the 50% limit applies to deductions from wages. Whether it limits a set off against leave encashment or other non-wage amounts in the final settlement is not settled in the text, so the tool applies it to the wages figure you enter and flags any balance. Take advice before deducting more.

Certificate, clearance form or request letter: which one?

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No dues certificate FAQ

What is a no dues certificate?
A no dues certificate is a letter from the employer confirming that an exiting employee has returned company property, settled advances and loans, and completed handover, so neither side owes the other anything except the final settlement. It is usually issued after every department signs a clearance form and before or with the full and final settlement.
Is a no dues certificate mandatory in India?
No statute requires an employer to issue one. It is a company practice that protects both sides: the employer records that assets and advances are cleared, and the employee has proof for a new employer or a bank. Some employers include the no dues confirmation in the relieving letter instead of a separate certificate.
Can an employer delay final wages until no dues clearance is complete?
Wages are a separate obligation. Under Section 17(2) of the Code on Wages, 2019, in force since 21 November 2025, wages due to an employee who resigns or is removed, dismissed or retrenched must be paid within two working days. A pending clearance does not move that deadline, so run the clearance during the notice period.
How much can an employer recover from final wages for unreturned assets?
Section 18 of the Code on Wages, 2019 allows deductions for damage to or loss of goods expressly entrusted to the employee and for recovery of advances, and Section 18(2) caps total deductions in a wage period at 50% of the wages. Anything above the cap has to be recovered another way, for example against the employee's agreement or through a claim.
Which departments sign a no dues clearance form?
Most companies route it through the reporting manager for work handover, IT for the laptop, accounts and access revocation, administration for the ID card, access card and other assets, finance for advances, loans and pending claims, and HR for the exit interview and documents. Add any department that issues assets, such as a library or stores.
What is the difference between a no dues certificate and a relieving letter?
A relieving letter confirms the employee resigned and was relieved on a stated date. A no dues certificate confirms that money and property between the employee and the company are settled. Many employers issue the relieving letter only after the no dues clearance, but the two documents answer different questions.
What should an employee do if the company refuses a no dues certificate?
Ask HR in writing for the list of items still pending and return or settle them. If the company is withholding the certificate without a stated reason, keep the written record. Unpaid wages can be claimed before the authority under the Code on Wages, 2019; for anything beyond wages, take advice from an employment lawyer.
Is this no dues certificate generator free?
Yes. The tool is free, needs no login, and runs entirely in your browser. Nothing you type is uploaded or stored by GetHirePlus. If a value or a statement on this page looks wrong to you, tell us at [email protected] and we will fix it.

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This page is general information for HR teams, not legal advice. What you may recover and when final wages fall due depend on the Code on Wages, 2019, your state's rules under it, the employee's contract and the facts. For a disputed recovery, take advice from an employment lawyer.