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hetal_hets
4

Hi, Please let me know as is any company liable to pay F&F , Salary to any employee if they are absconded or terminated by company with immediate effect. Regards, Hetal
From India, Mumbai
Gianim23
95

The company is liable to settle the F&F if the employee is terminated. The F&F is whatever is due to the employee so it has to be cleared. For absconding employees the F&F can be settled once the employees clears the notice period pay etc.
- Gia

From India, Pune
hetal_hets
4

Hi Gia, Thank you so much for your quick reply. But what if employees does not clear notice period ? In that case are company eligible to settle F&F ?
From India, Mumbai
abedeen7
135

Dear Hetal,
Greetings of the day!
I would like to add to the discussion. Employer is liable to clear all the dues of the employee whether service is terminated by the employee or employer. If an employee is absconding then deduct the notice pay mention in the employment contract then release the payment. Employer cannot hold payment of employees.
Hope this may help you.

From India, Bhubaneswar
Gianim23
95

Hi :
I agree to the inputs suggested by Abedeen. Just to add in case of involuntary separation (termination), the company may have to settle the notice pay in case the employee is confirmed irrespective of the reason of termination.
- Gia

From India, Pune
Ashutosh Thakre
273

HI,
If it is termination, then clear the F&F with as per procedure and payment of notice pay. If the person has been absconding, then deduct the notice period and then check if he can be anything or something.
Regards,
Ashutosh Thakre

From India, Mumbai
jeshkan
159

I feel that If Company clears all the dues of the employee whether service is terminated by the employee or employer and it deducts only the notice pay amount from absconded employee; It would definitely give negative message to all other employees who work in the same organization that employee can leave at anytime they wish even without following the policy of the company.
1. HR people will not able to identify the reason why people have left.
2. Employee will start thinking that why should follow Company exit policy when it does not make any difference.
Regards,
M.Kannan

From India, Madurai
Mahr
477

Dear Hetal,
Your query tags Termination from the Employer with immediate effect. In this case F&F should be cleared within 1 business day from the date of separation. If the Termination is reasoned with breach of Code of Conduct, Bribe/breach of Gift of Favor, Solicitation, Discriminatory Harassment, etc, then it may be delayed due because of legal implications.

From India, Bangalore
neeraj_ardent
29

Dear Hetal,

If Company terminates employee, than company has to do F&F. They have to pay the salary till the person has worked and the notice period salary as well as mentioned in the Appointment letter. But if the termination is on some disciplinary issues or breach of code as mentioned by Mr. Mahesh, company may pay only the salary till the person has worked and not the notice salary, which depends on terms and conditions mentioned in the HR policy.

In case a person is absconding, company is not liable to pay the notice period salary and company can take action against the candidate for not serving the notice period. As pointed by Mr. Kannan, agree with his view. If a person absconds, than HR cant do the F&F and company has to take action on this as per their policy. Usually company need not to pay anything to the absconding employee as even if a candidate has 1 month notice and the person absconds before getting the salary for the last month worked, so company is not liable to pay anything to the employee. Usually now a days most companies have 2-3 months notice period, and in this case the only probability for the company to pay to the absconding employee is that the company had not paid the salary for last few months and the employees salary with the company is more than the notice period salary.

Regards

Neeraj

From India, Mumbai
Prasad62
17

1. Voluntary abondonment of employment and termination are not synonymous.
2. Regardless of nature of separation, settlement of final dues is a must.
3. Depending upon terms of employment, recovery of pay in lieu of shortfall in notice pay is possible in voluntary abondonment.
4. Likewise, payment of notice pay in the case of termination. (Besides other legal pre-requisites of termination.)
5. Completion of handover / exit formalities can be a pre-condition to the f & f settlement. But this must be communicated to the exiting communicated and not assumed. You can hold the settlement until this is fulfilled (subject to provisions of unclaimed dues under Labour Welfare Fund act Of your state, if applicable). But your intention to settle must be communicated.
6. If dues are payable by employee, you will have to demand the same.
Cheers


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