No Dues Certificate Format
Record that an exiting employee has cleared all departments and has no outstanding dues to the company.
What it is
A no dues certificate (NDC) confirms that a person owes nothing to the issuer. For employees, it records the exit clearance by each department: return of laptop and ID card, settlement of advances and imprest, and handover of work. It is usually completed before the full and final settlement and the relieving letter are issued.
When it is used
- Employee exit clearance before the F&F settlement.
- Issuing a relieving letter or experience certificate.
- A new employer or bank asks for proof that no dues are pending.
What the template covers
- Employee name, ID, designation and period of employment
- Department-wise clearance table with status and remarks
- Any amount found due and how it is adjusted
- Purpose of the certificate
- Reservation of rights for undisclosed liabilities
- Authorised signatory
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Certificate Details
Date of Certificate; Reference No.; Certificate For
Company
Company Name; Company Address; Authorised Signatory Name; Signatory Designation
Employee / Party
Name of Employee / Party; Employee ID / Vendor Code; Designation / Relationship; Date of Joining / Start Date; Last Working Day / End Date
Clearance Checklist
Department Clearances: Department, Item / Asset / Account, Status, Remarks, Cleared By
Dues
Amount Due to Company, if any (₹); Nature of Amount Due
Stamp duty, registration and filing
A no dues certificate is not a statutory document; it records the position in the employer's books on the date of issue. Recoveries from wages must be among the deductions permitted under the Code on Wages, 2019. The template keeps a reservation for liabilities not known on the date of issue and for continuing confidentiality obligations.
Generate the No Dues Certificate (Employee Clearance)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. PF, ESI, TDS on salary)? Contact SKAG and Associates
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Frequently asked questions
Can an employer withhold the relieving letter until no dues are cleared?
Employers commonly complete clearance first, but statutory dues such as wages must still be paid within the time the Code on Wages, 2019 requires.
Who signs the no dues certificate?
Each department head signs its row, and HR or an authorised officer signs the certificate.
Is a no dues certificate needed for every exit?
It is a good practice rather than a legal requirement. It protects both sides by recording what was returned and settled.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.