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No Dues Certificate

Certify that a departing employee has cleared all company dues, equipment, and outstanding obligations before exit.

← Part of MB HR Documents

Guide

No Dues Certificate, explained

About the No Dues Certificate

A no dues certificate is a clearance record — it states plainly that a departing employee has returned company property and settled any advances or loans, with nothing outstanding on either side. It's a checklist-style confirmation, distinct from the relieving letter, which is the formal release itself.

Issue it as part of exit processing, once returns and settlements are actually verified — it closes out the practical loose ends alongside, not instead of, the relieving letter.

Fields this generator asks for

Every field below feeds directly into the letter — nothing is invented on your behalf.

  • Last working day (required)
  • Items cleared (optional) (optional)

Sample content

This is to certify that Kavya Rao, who served as Business Analyst with Northstar Digital Solutions Pvt. Ltd. until 31 March 2026, has cleared all dues, advances, and company property as of the date of this certificate.

Specifically, the following were returned or settled: company laptop, access card, and the outstanding travel advance.

Northstar Digital Solutions Pvt. Ltd. confirms there are no outstanding financial or material obligations owed by Kavya Rao as of this date.

Frequently asked questions

When is a no dues certificate issued relative to the last working day?

Typically on or just before the last working day, once handover, equipment return, and any advance settlement are actually complete — issuing it earlier risks stating something that turns out not to be true.

How is this different from a full & final settlement letter?

A no dues certificate confirms non-financial clearance (equipment, access, advances) is complete. A full & final settlement letter is specifically about the final salary and dues calculation — the two are often issued together but answer different questions.

Do I need to list every item, or is a general statement enough?

A general statement is valid, but listing the specific items cleared (laptop, access card, advances) makes the certificate more useful as a reference if a dispute ever comes up about what was or wasn't returned.

Related HR tools

The documents produced by this generator are templates for drafting and HR workflow support — they are not legal advice. Have final wording reviewed by your HR team, legal advisor, or authorized signatory before official use.