What Is No Due Certificate Format? How to Write & Download Sample

The full and final settlement of an employee with the firm is crucial when leaving the company. Here, a no-due certificate comes into play. It is one of the officially provided documents that affirm the clearance of an employee of all liabilities on the part of the firm, making it easier for them to get relieved and switch jobs lawfully. 

Being an authoritative document, it needs to be presented in a specific design, mentioning all particulars in a specific format. 

So, we have provided the standard no due certificate format explaining all its indispensable elements and other related aspects, with some free, ready-to-use samples. 

No Due Certificate and Its Purpose

A no-due certificate is an official document that declares that the employee has no outstanding dues pending and affirms a final settlement between the employee and the company. It is a part of the formal process conducted when an employee resigns from the company. 

Like other documents, such as appointment letter, joining letter, and resignation letter, the no-due certificate also holds high importance for the employee during the recruitment and leaving process. It is also crucial for the employer to maintain a legitimate record of the employee and talent management system. 

A no due certificate serves multiple purposes for the employee as well as the employer. Some of its noteworthy uses are as follows:

1. Proof of Clearance: It serves as proof for the employee of the clearance of all fees, charges, and other financial commitments claimed from the company. 
2. Legal Protection: Being an official document, it bears the authority to lawfully declare that the employee has no dues remaining from the company. 
3. Final Settlement with the Firm: A no due certificate is a final document that affirms settlement, substantiating it with details and remarks of other concerned departments. 
4. Ensures Professionalism: It maintains professionalism as it is authoritatively provided by one company and is accepted by the other. 

Continuing in the sequence, the no-due certificate format has integral elements that are essentially incorporated into it.  

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Key Components of No Due Certificate Format

There are certain vital constituents that a no due certificate must possess to give it a formal texture. These components need to be mandatorily included in this document. 

1. Employee Details: The details of the employees should be correctly mentioned. 
2. Company’s Information: Accurate details of the company, such as the issuing department, company name, and address, etc., need to be correctly provided. 
3. Details of the Concerned Departments: Naming the departments that have confirmed no dues between them and the employee can also be mentioned to make it more informative and clear. Some examples of these departments can be the cashier, HR department, the accounts, and the finance department etc.
4. Signature and Seal: The signature and seal of the department head are highly important to assert authority in the letter. 

No Due Certificate Format for Employees 

Being an official document, a no due certificate should be structured in a correct format. The above-mentioned components should be organized accordingly to give it a formal design, along with exhibiting maximum information in the minimum words.  

Here is the no due certificate format for employees and employers for official purposes. 

(COMPANY NAME)

NO DUE CERTIFICATE

Date: ______

(Body Content)

Department Name	Date	Signature of Department Head

Prepared/Checked by:- 

(Authority head Signature) 

(Authority head Name)

(Authority head Designation)

Based on the above no-due certificate format for employees, below are some samples that you can refer to and use for official purposes by changing the caption in brackets. 

Sample 1

(COMPANY NAME)

NO DUE CERTIFICATE

This is to certify that Mr./ Ms/Mrs. (employee name) With employee ID (employee ID series) of (department name) department, on the designation of (employee designation), is being relieved from employment with the organization with effect from (date).

You are requested to acknowledge this and also confirm hereby by duly signing below that your department has no dues from the above employee.

Department	Signature of Head Of Department	Date
Admin Department
Finance and Accounting Department
Information Technology Department
Human Resource Department
(Other department)

The abovementioned employee’s full and final settlement has been officially settled on (date). The employee has no liability towards the (company name) as of (date). The (department name) department confirms that he/she has returned all (company name) belongings and cleared all financial responsibilities as of the mentioned date.

Prepared/Checked by:- 

(Authority head Signature) 

(Authority head Name)

(Authority head Designation)

Sample 2

(COMPANY NAME)

NO DUE CERTIFICATE

This is to confirm that Mr./Ms/ Mrs. (employee name) working as (employee designation) in (employee department) department has been relieved from the services and has no outstanding dues against his/her name as verified by the concerned departments mentioned below. 

Department	Signature of Head Of Department	Date
Admin Department
Finance and Accounting Department
Information Technology Department
Human Resource Department
(Other department)

Hence, he/ she is eligible to leave the organization on the mentioned date.

Checked and approved by:

(Authority head Signature) 

(Authority head Name)

(Authority head Designation)

Sample 3

(COMPANY NAME)

NO DUE CERTIFICATE

Name of Employee: ____________________ 

Employee ID:- _________________________

Date of Joining: ________________________ Designation:___________________________ 

Department: __________________________

Date of Resignation:_____________________ 

Date of Relieving _______________________ 

This is to confirm that the above-mentioned employee has no outstanding dues

against his/her name as verified by the mentioned departments.

Item	Remarks	Signature of HOD
Loan / Advance / Imprest – Account Dept.
Stores Dept
Mobile SIM / Mobile Handset – Admin Dept
Laptop / Pen drive – IT Dept.
ID Card / Punching Card – HR Dept.
Department Data – Concerned Dept.
Others (if any)

Checked and approved by:

(Authority head Signature) 

(Authority head Name)

(Authority head Designation)

How to Obtain a No Due Certificate 

The procedure for obtaining a no-dues certificate is generally mentioned in the policy document or employee handbook. However, a common and most fundamental way to claim it is mentioned as follows. 

1. Ensure the Financial Settlements are Completed: The first and foremost step is to ascertain that you don’t have any dues remaining from any department. 
2. Send a Letter or Email Requesting the Certificate: You can request a no-due certificate from your company through a letter or an email. 
3. Follow up on the Request: After receiving the letter, the concerned department will proceed with obtaining confirmation of no dues from other departments, which might take time. For this, you may ask for a follow-up response from the concerned authority. 
4. Receive the Certificate: After completing all formalities, you will be handed a no due certificate, either in hard copy or soft copy.

In this process, there are some common mistakes that administrators commit while writing such a document, which are discussed below. 

4 Common Mistakes to Avoid in No-Due Certificate Format

A no-dues certificate is used in formal procedures, which brings the compelling need for it to be error-free. While framing it, you need to be cautious of avoiding the errors mentioned below. 

1. Incorrect Details: Mentioning incorrect details of the employee or employer can cause informational errors. Some examples are incorrect employee ID, incorrect employee name, or the company’s details etc.
2. Unspecific Language: If the language written is unspecified or unclear, it won’t convey the expected message, might not be accepted by the other firm, and might not serve the purpose. 
3. Incorrect Format: Not following the correct no-due certificate format portrays an unprofessional and informal response, which is not accepted in official operations. 
4. Issues With the Dues Details: There might be some discrepancy in the details of the department mentioned in the table, or non-availability of a crucial department, which might indicate non-settlement of dues.  

A no due certificate for employees is sometimes misunderstood as a no-objection certificate. However, they both differ in their essence, format, and purpose. 

Difference Between a No-due Certificate and a No-objection Certificate

A no-objection certificate is a document issued by a firm to state that the firm or organization has no objection to the specified action of the employee as mentioned in the document. On the other hand, a no-due certificate certifies that the employee is free from all dues concerning the company’s resources and payments. 

The table provided below will further distinguish these two resembling terms. 

Differences	No-Due certificate	No-Objection certificate
Based on	Liabilities based	Action based
Purpose	Clearance of outstanding dues	For providing consent
Time of issuance	While leaving the company or organization	Can be during the tenure or while leaving the company
Connotation	Financial	Financial as well as non-financial

One similarity between them is that issuing both documents is one of the responsibilities of HR personnel of the company.

Conclusion

The no due certificate format is essential in maintaining professionalism and to exhibit the required information in the perfect layout. The above-mentioned format will help you in framing such letters with high accuracy and in an authorized pattern. You can also use the samples given above to save time and effort in this process. 

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