Free template
No-Dues certificate format for employees, with a free template
A No-Dues certificate confirms that a leaving employee has returned everything and owes the company nothing, so HR can close the Full & Final settlement. Here is what it should cover, a format with a sign-off row for each department, and a Word file to download.
Updated 28 October 2026
What a No-Dues certificate is
It is the last internal sign-off before an employee’s Full & Final settlement. Each department that might be owed something confirms it has nothing pending: IT has the laptop back, Admin has the ID card and keys, Finance has settled the travel advance. It is also called a clearance certificate or an exit clearance form.
No law prescribes its format. It is a company practice, so the right format is the one that covers everything your departments hand out or lend.
What to put in it
A useful certificate fits on one page and has four parts.
- Employee details: name, code, department, designation, office, resignation date and last working day
- One row per department: what it checks, cleared or not, remarks, and who signed
- A table of company assets: tag, item, serial number and what happened to each
- The certificate itself, any amount to settle in the Full & Final, and the HR and authorised signatures
Why the assets get their own table
A tick next to “IT: cleared” does not tell anyone what came back. Six months later, when an auditor asks about laptop LAP-0142, the certificate should show it was returned, in what condition, and on which date. List every item the person held, from your asset register, with one outcome each: returned (and its condition), lost or stolen, or kept with approval.
The format
Copy it as it is, or download the Word file and add your logo.
No-Dues certificate
- Company name
- Reference no.
- Date of issue
Employee
- Employee name
- Employee code
- Department
- Designation
- Office / location
- Date of resignation
- Last working day
Clearance by department
| Department | What to clear | Cleared? | Remarks | Signed, with date |
|---|---|---|---|---|
| IT | Laptop, charger, phone, data card, monitor; email and software accounts closed or handed over | |||
| Admin | ID card, access card, keys, locker, parking sticker | |||
| Finance | Salary or travel advance, loans, pending expense claims, corporate card | |||
| Reporting manager | Work handed over; files and shared passwords transferred | |||
| HR | Notice period, exit interview, company documents returned |
Company assets
| Asset tag | Item | Serial number | Outcome |
|---|---|---|---|
| LAP-0142 | Dell Latitude 5440 | 5CG3xxxxxx | Returned, good condition |
| PHN-0388 | iPhone 13 | F2Lxxxxxxx | Returned, screen cracked (amount flagged below) |
| ACC-1204 | Access card | — | Waived, approved by the owner |
Example rows. The Word file has empty rows to fill in.
Certificate
This is to certify that the employee named above has returned all company property and has no dues outstanding with the company, except as noted below.
- Amount to settle in Full & Final
- Remarks
HR: signature, name and date
Authorised signatory: signature, name and date
Running the clearance without chasing for weeks
Most clearance delays come from starting on the last day. Start when the resignation is accepted instead.
- On the day of resignation, list everything the person holds from your asset register
- Send the list to the employee and their manager, with the last working day
- Give each department a name and a date to sign by
- Remind at fixed points, for example on day 0, day 3 and day 7
- Record an outcome for every item, not just “cleared”
- Issue the certificate only when every row and every item is closed
Damage, loss and the Full & Final
When an item comes back damaged, write down the condition and take a photo before anyone argues about it. When something is lost or stolen, record it as lost, get the write-off approved by whoever owns that decision, and note any amount to settle in the Full & Final rather than quietly deducting it.
Rules on when final wages must be paid, and on what can be deducted from them, are set by law. Check with your payroll or legal adviser before holding back or deducting any amount.
The asset part, done by AssetVow
When a resignation is recorded, in AssetVow or in Zoho People or Microsoft Entra ID, an exit case opens with one task per item the person holds. Reminders go out on day 0, 3 and 7. Each item is returned, written off or waived, HR confirms software accounts were reviewed, and a No-Dues PDF for company assets goes to the employee and HR. Finance and admin dues such as advances stay on your departmental form.
See how it worksFAQ
Common questions
Is a No-Dues certificate mandatory?+
No law prescribes it. It is a company practice that gives HR one document showing nothing is pending before the Full & Final settlement.
Who signs the No-Dues certificate?+
Each department that hands things out or lends money signs its row, usually IT, Admin, Finance, the reporting manager and HR. HR and an authorised signatory sign the certificate at the end.
Can we hold back the Full & Final until the employee clears dues?+
Many companies process the Full & Final after clearance, but the law sets rules on when final wages must be paid and on what can be deducted. Check with your payroll or legal adviser before holding back any amount.
What if the employee has lost a company laptop?+
Record it as lost (and file a police complaint if it was stolen), get the write-off approved, and note any amount to settle in the Full & Final according to your policy. Do not mark the asset as returned.
Is a No-Dues certificate the same as a relieving letter?+
No. A relieving letter confirms the employee was relieved from their job on a date. A No-Dues certificate confirms they have nothing outstanding with the company. Many companies issue the relieving letter after clearance.
Close your next exit with every item accounted for
Import your register, record one resignation and watch the exit case open. Free for 30 days.