No Dues Certificate Format for Employees

A no dues certificate, also called a clearance certificate, records that an exiting employee owes nothing to the company: laptop and ID card returned, advances settled, library books and tools handed back, and access closed. Each department signs its own line, and HR then certifies clearance. It sits between the resignation and the full and final settlement, and it is the document that lets HR issue the relieving letter without worrying about missing assets.

When to use it: Start it at least a week before the last working day so each department has time to check its records. The employee takes the form around, or HR circulates it, and each department head signs. HR signs the final certificate on or after the last working day and keeps the original.

No dues certificate template

Copy the text below and replace everything in square brackets with your company details.

[Company Name]
[Office Address]
[City], [State] [PIN Code]

NO DUES CERTIFICATE
Ref: [Company Code]/HR/ND/[Year]/[Number]
Date: [Date]

Employee name: [Employee Name]
Employee ID: [Employee ID]
Designation and department: [Designation], [Department]
Last working day: [Last Working Day]

Departmental clearance

Reporting manager: handover of files, work and client contacts completed. Name, signature and date: ____________
IT: laptop [Asset Tag], charger and accessories returned; email and system access closed on [Date]. Name, signature and date: ____________
Administration: ID card, access card, keys and [SIM card or locker key] returned. Name, signature and date: ____________
Accounts: salary advance, imprest and travel advance settled or to be recovered from final dues, amount ₹[Amount]. Name, signature and date: ____________
Stores or tools: [uniform, safety shoes, tools or instruments] returned. Name, signature and date: ____________
Library or training: books and course materials returned. Name, signature and date: ____________

Certificate

This is to certify that [Mr. or Ms.] [Employee Name] has returned all company property issued to [him or her] and has no dues outstanding to [Company Name], [except the amount of ₹Amount noted above, which will be adjusted in the full and final settlement]. [His or her] full and final settlement may be processed.

For [Company Name]

[HR Signatory Name]
[HR Designation]
Signature: ____________

Employee acknowledgement

I confirm that I have returned all company property listed above and have no other company property in my possession.

Name: [Employee Name]
Signature: ____________
Date: ____________

What to include

One line per department

Give each department its own line with space for name, signature and date. When something goes missing later, the signed line shows who cleared it and when.

Asset tags and specifics

Write the laptop asset tag and the exact items issued. A general line saying all assets returned does not help when a charger or a toolkit turns up missing.

Amounts to be recovered

If an advance or imprest remains, write the amount and that it will be adjusted in the final settlement. The certificate then feeds directly into the settlement statement.

Access closed

Include a line confirming that email, system and building access were closed on the last day. It protects client and employee data after the person leaves.

Start early

Starting clearance a week before the last day avoids the scramble for signatures on the final afternoon and the delays in relieving letters that follow.

Common mistakes to avoid

Starting clearance on the last afternoon, leaving departments no time to check.
Accepting all assets returned without asset tags or item details.
Withholding earned wages until every signature is collected.
Forgetting to close system and email access on the last day.
Losing the signed original, so later disputes cannot be settled.

Run it in ZeniaHR

ZeniaHR's offboarding includes an 8-item exit checklist on the employee record, so HR can track clearance steps in one place instead of chasing paper. HR adds any unrecovered salary advance to the final payroll as an advance recovery deduction, and pending reimbursements as earnings. The signed no dues certificate is scanned into the employee's documents, and the person moves to the previous employees list after exit.

Employee records and exits Payroll Employee documents

See it on your own data

A 30-minute demo on a video call. We set up your departments, shifts and leave rules and show attendance, leave and payroll running for your team. Free for your first 50 employees.

Book a free demo See pricing

Frequently asked questions

What is a no dues certificate for employees?

It is a clearance document confirming that an employee leaving the company has returned all company property and has no outstanding dues, such as advances or unreturned assets. Each department signs its part, and HR certifies the overall clearance before the full and final settlement and relieving letter.

Who signs the no dues certificate?

Each department that issued something to the employee signs its line: the reporting manager for handover, IT for devices and access, administration for ID and keys, accounts for advances, and stores for tools or uniforms. HR signs the final certificate after all lines are cleared.

Can wages be withheld until no dues clearance is complete?

Wages earned up to the last working day are due within two working days of the employee leaving, so they should not be held back for clearance. The value of unreturned property or unsettled advances can be adjusted in the final settlement only as the appointment terms, a written authorisation and the law permit.