Dues Clearance Declaration Template
Standardize your final receivables reconciliation process and protect your termination process from disputes: A ready-made, legally compliant receivables acknowledgment form.
When?
2. July 2025
10:30 AM KSA Time Zone
Where?
Online
Zoom Conference
Why Use the Dues Clearance Declaration Template?
- Ready to use and customizable: Contains pre-built fields for employee data, breakdown of amounts, payment method, net amount after deductions, and acknowledgment text.
- Audit-compliant: Includes space to add evidence (payment reference, bank receipt, attachments) and signatures to create an auditable record.
- Minimize risk: Clearly worded receipt minimizes misunderstandings and helps support financial and legal records.
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Frequently Asked Questions
What is a Dues Clearance Declaration, and how is it different from full settlement?
A Dues Clearance Declaration is a document where the employee formally acknowledges receipt of financial and contractual entitlements (salary, bonuses, leave pay, severance, advances, etc.). Unlike a full settlement (which may imply a complete waiver of future claims), this declaration focuses on confirming the payments made. It may include a waiver clause, but protections offered by law cannot always be waived.
When should HR issue this declaration?
It should be presented in circumstances such as:
- Termination, resignation, contract completion, or retirement
- After disbursing final payments and entitlements
- When settling interim dues (e.g., advances)
- Upon return of company property and final accounting
Issuing it at the time of payment and signed by employee helps shield the organization from future disputes.
What essential elements must the declaration include?
Key components include:
- Employee information (name, ID, position)
- Employer information (company name, department)
- Period covered and basis for dues
- Itemized list of dues: final salary, leave pay, bonuses, severance, deductions, advances
- Payment method (bank transfer, check, cash)
- Acknowledgment clause stating that the employee has received these amounts and waives further claims (subject to legal limits)
- Signature blocks: employee, HR representative, witness (if applicable)
- Attachments: payment proof, breakdown documents
Is the declaration legally binding, and does it prevent future claims?
A signed declaration is strong evidence in legal or administrative contexts, but it may not override rights protected by law. If the employee was induced to sign under pressure or without full information, the document might be challenged. It’s prudent to include clauses that respect non-waivable statutory rights.
What if the employee refuses to sign?
- Document the refusal in writing, noting any reasons.
- Preserve proof of payment (bank slip, transfer confirmation).
- Attempt to clarify differences.
- In dispute cases, consult legal counsel before proceeding.
Can the declaration be digital or use e-signatures?
Yes, when supported by local law:
- Use a system with certified e-signatures and audit trails
- Save PDFs with logs and attachments
- Ensure the electronic format is legally recognized in your jurisdiction
What retention period should apply to signed declarations?
Follow local law or company policy, but typically retain the document at least as long as the statute of limitations for employment or contractual claims.
How to prepare a clear settlement summary?
Your summary should include:
- Headers and descriptions for each item (e.g. “Basic Salary”, “Leave Pay”)
- Amounts in both numbers and words
- Net payment amount
- Attached supporting documents
- Acknowledgment line confirming the employee reviewed it before signing
- A transparent summary helps reduce misunderstandings and strengthens the legal standing of the declaration.
Should the declaration be bilingual (if the employee speaks a different language)?
Yes. Provide a bilingual version (e.g. Arabic/English) and indicate which language governs in case of legal disagreement (usually the legally recognized language).
What dues should typically be included?
Common items:
- Pay up to the last working day
- Unused leave pay
- Bonuses or incentives owed
- Severance or contractual benefits
- Expense reimbursements
- Advances or employee loans to be deducted
Each item should be clearly described and separately listed.
What if a calculation error emerges after signing?
- Review and confirm the error internally
- If it benefits the employee, issue a correction and document it
- If it benefits the employer, consult legal counsel before attempting any adjustment
What's the pre-issuance checklist?
- Confirm employee identity and match with records
- Verify payment details with payroll/accounting
- Attach proof of payment (bank slips, mid-transfer confirmation)
- Ensure waiver clause respects non-waivable legal rights
- Provide the employee a full settlement summary for review
- Save signed declaration in both digital and physical records (as required)
How to calculate leave pay for unused days?
Compute the number of unused leave days, multiply by the daily rate based on salary policy or local law, and include that in the settlement summary.