Labour Law & Hr Consultant
Consultant In Legal Matters
Am - Hr
Mohd Razi Siddiqui
Medical Coder
+5 Others

Dear All,
If any company terminates an employee because of his absent without prior information to the company then in this case what would be the procedure of Full and final settlement of this employee:.Will company give him basic pay as per Notice period mentioned in his appointment letter or not?
2. Will company is bound to do Full and final settlement of this employee or not?
3. what components of salary is counted in F & F?
Please give me information as per labour laws.
Thanks & Regards,
10th July 2014 From India, Delhi

I am working in a limited company since Dec 2010. From Nov 2012 company unable to pay salary on time. I got salary of Nov 2013 in last week of Jun 2014. I had taken maternity leave from Dec 2013 to Feb 2014. Company didn't paid salary for these months till date. I joined company after maternity leave on time. After that I took frequently leaves for baby care as I didn't have full work. On 9/6/2014 I went to hr for salary advance. She told me, send mail & search another job, coz company's condition is bad & we will not have this type of work in future what you are doing here. Next day I went on leave. On 30/6/2014, she told me today is your last day. I told her I want to discuss this issue with my reporting person. On 7/7/2014, she told me, either put your resignation or we terminate you. We deposit 2 months salary in 3/4 days. I refused. First clear my balance salary of 6 months, after that I will give. Now I am coming to the office. Even they didn't deposit PF for last 2 years & income tax for this year. What should I do?
10th July 2014 From India, New Delhi
Hello Shiklha
Full and final settlement is to be done when there is termination of service of an employee and subject to the terms of employment in the appointment letter, the employer has to pay full wages or gross salary equivalent to the notice period.which he would have drawn, had he been in the service., have to be paid.
HR & IR Advisor

11th July 2014 From India, Mumbai
No labour Act defined notice pay.They define only wages and each Act defines wages in a different way keeping in view the objectives of the Act concerned. Thus the definition of basic wages under P.F Act is different from that under ESI Act.Therefore you need to rely on an Act that deals with rights and obligations of an employee in general.Thus the Payment of wages Act is one such Act.Therefore if the employee in question is one covered by the Payment of wages Act( if his salary is Rs18000/- or below), then he can file an application before the authority u/P.W.Act for recovery of wages.Then what constitutes wages under the said Act is the question. Sec.2(vi) defines wages as including all remuneration by way of salary, allowances or otherwise payable for the work done by an employee and includes among others any sum which by reason of the termination of employment of the person employed is payable under any law. contract or instrument etc.In the instant case, the notice pay payable by the employer is the sum payable under the contract and hence forms part of the wages defined above.

Please go trough the provisions of the Payment of Wages Act before taking a decision and convince yourself first.What the seniors provide here shall not be construed as some legal opinion to be acted up on but only as a reference or guidance or direction to the member posting a query towards finding an answer to his query/problem


In-House HR & IR Advisor

11th July 2014 From India, Mumbai
Dear Mr.Saikumar, I think the questioner asks about the full and final settlement of dues if any to an employee on his termination on the disciplinery ground of unauthorized absence.
12th July 2014 From India, Salem
True, Mr.Umaknthan.but the member did not say that the termination was brought about by way of disciplinary action and the post conveys the impression that the employee stopped coming to office/work which compelled the employer to terminate his services in the manner of termination simpliciter and that's why the querying member sought to know as to what components of salary are to be taken into consideration for paying him notice pay. Since the termination was already brought about by the employer,it is futile to suggest that the employer shall initiate disciplinary action now.
In-House HR & IR Advisor

13th July 2014 From India, Mumbai
Dear Mr.Saikumar,
Your answer given under the perceptions of the termination to be a discharge simpliciter and resorted to already is correct. But, since the Questioner framed her very question in simple present tense and specifically asked for payment of notice pay on unilateral termination of the contract of employment for the unauthorized absence of the employee, I hve a doubt whether the management is planning to terminate him under the garb of discharge simpliciter to avoid the lengthy disciplinery process.
13th July 2014 From India, Salem
Mr.Umakntan, thanks for raising the issue. I read the post again and yes, as you said, the member posting the query framed the question in simple present tense.In that event, if the employee is a workman, it is open to him to question the termination on the ground of it being punitive in the appropriate forum (conciliation and subsequently in the labour court) and it is for the employer to prove bonafides of his action.If the employee is a non-workman,he has civil remedy which he is unlikely to pursue as in majority of cases. Thus it is prudent for the employer to conduct disciplinary process for unauthorised absence and impose appropriate penalty and a penalty of dismissal may not be appropriate in every case of unauthorized absence and therefore your apprehensions may be true also.The members leave so many gaps in the information,leaving it open to the responding members to fill in those gaps by stretching their knowledge and experience.In the instant case I therefore confined myself to the limited question asked by the member as to what components of salary/wages shall count for notice pay without entering the domain of decision making of the employer in respect of the termination since the reply was not sought on termination.I have answered the limited question with reference to Payment of Wages Act as the member sought to know the reply within the frame work of labour laws. Is it O.K? If there is any other dimension to the this limited query which I missed, please enlighten me for my knowledge sake and that of the members.


HR & IR Advisor

14th July 2014 From India, Mumbai
Your answer to that part of the question relating to notice pay in the event of full and final settlement is highly commendable as it logically connects the matter to the intricate point of the provisions of Sec.2(vi) of the Payment of Wages Act,1936 in addition to the terms of unilateral termination of the contract of employment by the employer. I have nothing to add other than placing my heartiest appreciation to you on record for the beautiful interpretation based on perfect cross-reference.
14th July 2014 From India, Salem
If any company terminates an Employee On Grounds Of Discipline ( Code Of Conduct) Can We Hold His Full And Final Settlements like Salary And Other Payments Along With His Relieving Letter and Issue a Termination Letter.
Will There Be Any Legal Issues Against this.Please Advice as per Labour laws.
21st January 2015 From India, undefined
Dear Sandy,
Under Shops and establishment Acts generally it is provided that experience certificate has to be issued whether employee is to be dispensed with simpliciter or by way of misconduct.Besides full and final settlement of dues has to be done at the time of discharge. It is the duty of inspector to ensure compliance of these. Similarly Under Payment of wages Act, those employees drawing less than Rs.18000 can recover wages under the Act.
21st January 2015 From India, New Delhi
Can anyone help me to know ,How to create ESIC report through Saral Pay Pack software- also mention complete process of ESIC payment
27th February 2015 From India, Mumbai
If you are comes under defination of workman under section 2(S) of Industrial Dispute central Act 1947 e.g unskilled,skilled,technical,clerical & supervisory work ocassionally then not to submit any resignation letter,let the employer terminate the employment then you have full rights to lodge a case in the labour court of your region to get the service with full back wages else resign from service.And regarding the maternity benefits filed a application before the labour officer of concern area of your region ,you will get leave with salary along with all medical expenses inccurred during pregnancy period to delivery period also you can file a application before the Asst.Labour Commissioner of your region to get all salary.
21st April 2016
You can't terminate the service of any employee without domestic enquiry & punishment by the legal ground.i.e when any employee do the misconduct like dis-obeyed the superiors suggestions,fraught with incidence or convicted by the court order.first two require the domestic enquiry by the police officer ,if possible police officer will filed a FIR ,so you can suspend the service of employee by payment of 50% wages to him upto 6 months and after six months 1/3 of full wages& third it does not require any.Again,you can't hold the full & final settlement including salary except gratuity under the eye of law,the full nd final settlement should pay within 15 days's completion of termination from service otherwise no employer will terminate the service of any employee,if it prove in the court that bad practice by the employer then he will penalize by awarding to employee by reinstatement of service with full back wages.
21st April 2016
Hello Sir,
I am MD. Razi I am Medical Coder in Champ Info Software since 1 year in Noida. I have bond one sided of 5 month. If I leave the company I will pay 5 months of salary, suddenly company have no work, If the company terminated our job without any compensation or without notice period , so we want know your advice. can we take any legal action, please advice.
9th August 2016 From India, Noida
You raise a dispute before the area Conciliation Officer u/s 2A of the Industrial Disputes Act,1947 for reinstatement and backwages.
9th August 2016 From India, Salem
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