Respected Professionals, I want to know regarding F&F settlement in case of termination.
We had terminated an employee on an immediate basis due to non-performance. He was still on probation but after warning also his performance did not improve. While processing his full and final settlement we found that he did not fill his timesheets for the single day when he was in the organization ( this is one of our policies to fill timesheets, timely).
So, in this case, is the company bound to pay his full and final amount? Also, would like to know what can be the mail content to inform him about the same.
Waiting for the prompt response.

From India, Delhi
Dinesh Divekar
Business Mentor, Consultant And Trainer
Deputy Commissioner Of Labour..a.p.
Sr. Manager- Human Resource
Insolvency N Gst Professional
Management Consultancy
Nagarkar Vinayak L
Hr And Employee Relations Consultant
Pms,t&d,legal Compliances , Labour Handling

Dinesh Divekar

Dear Nidhi Singh,

The newly appointed employee did not perform to the expectations of the company. For the under-performance, your company has terminated the employee. However, the question arises is whether you had communicated in writing what were the performance expectations and did he accept this office note?

Secondly, if the employee did not meet your performance requirements then you have awarded him the punishment. However, there can be only one punishment for one misconduct. "Termination from employment" is the punishment of the highest kind. Then where is the question of withholding dues of the employee? Why do you wish to give one more punishment for the same misconduct? This is against the principles of natural justice.

If the employee did not fill the timesheets then when it was discovered and who discovered it? Did the employee's reporting manager or supervisor bring this fact to the notice of the authorities? If the timely timesheets were not filled then was the "official" warning given to the defaulting employee? If not, then who is at the fault? The defaulting employee was his seniors?

In a nutshell, I recommend you pay the employee his dues till his last working day and close the matter. Whatever type of misconduct, each employee is eligible to receive the salaries and wages till his/her last working day.


Dinesh Divekar

From India, Bangalore

During probation also, if the employee is covered under the definition of "workman" u/s 2(s) of Industrial Disputes Act 1947 and has completed 240 days, he is entitled to be paid retrenchment compensation simultaneously with the act of termination. Employers have to comply with this legal requirement.
I hope when you terminated his services, he had not completed 240 days in your organisation.
S. K. Mittal

From India, Faridabad

The denial of F& F benefits for not filling up time sheet is not proper and justified. Filling the time sheet is to indicate the amount of time spent on each job assigned. It is not the only job the employee was assigned. So you need to either construct his time sheet or presume in general that he has worked on all the days and pay accordingly. The principle of 'no work no pay' is not attracted here, unless you are able to show that the employee has not done any work as is evident from his time sheet. But before drawing the conclusion you need to seek the views of the employee concerned. You can write saying that, while considering F&F settlement, it is seen that the time logs are empty and there is no account of the work done since ../../.. So in the absence of such details it is not possible to consider payment of any compensation/benefit.
From India, Mumbai
Nagarkar Vinayak L

Dear madam,

You will appreciate that the subject of employee's termination is to be handled carefully .

Simple termination during the probationary period is subject to the notice period stipulation in the appointment letter as well as following due process of law particularly if the same is on account of any misconduct or performance issue like you have.

It is not clear from your post whether you paid due attention to both. One gets an impression that perhaps you acted in haste in termination.

Normally a probationar is terminated for any reason whatsoever, on the last day of the probation period to avoid any legal complications. Another HR practice is to obtain his/ her resignation and he is let go without any blot on his career.

You stated that you had warned the probationer employee for unsatisfactory performance. Hope you have done it in writing and also for his not maintaining time sheets.

As regards his F&F settlement, you should proceed to pay his all dues if he has worked for full period . For his alleged non- submission of the time sheets he cannot be blamed solely as there are laxities on your part also.

It would have been legitimate to hold F&F settlement if employee's conduct has caused any monetary losses which is not a case here.


Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai

Mr Vinayak and Mr Divekar have clearly and concisely brought out answers to the query.

Non filling of Time sheets is not that big an issue to withhold F& F.

Non submission of daily time sheet should have been monitored and employee cautioned by immediate supervisor/superior etc.

Lot depends on your appointment letter and terms of accepted probation period norms.

I do hope company has followed norms of notice and counselling during probation and still seeing no improvement terminated him.

Individua employees do mistakes but organisation with its own checks and counterchecks is expected t be more correct and complete in its responsibilties.

Paying F & F will be a good HR practise and will keep company name on higher pedestal as one which honours its side of responsibility towards employees.

Withholding should be only as a last resort with absolutely documented reasons which are justifiable in court of law.

From India, Pune
Dear Ms Nidhi
In all fairness and professional ethics , and legally you are bound to carry out full & final settelment of account and pay the dues as per terms of appointment/contract/agreement etc including any compensation applicable.
Best Wishes
Syed Arshad H Rizvi

From India

If a employees failure to perform its obligation amounts to a fundamental non-performance, the organization may terminate the contract.
From India, Pune
A good query Nidhi and contribution by team. I view the same as already expressed in above. In all fairness and ethics an employee on probation or otherwise, cannot be deprived from being fairly treated and cannot hold his full and final settlement.
Of course for the reason of non performance the probationary may be terminated immoderately. Not filling a days sheet do not justify any reason to hold f&f.

Brijesh Jadhav

From India

Please ref to appointment letter of that employee ( hope employee has also signed);The clause of termination is mentioned there is appointment letter i.e. in general employee put in probation for 6 months or one year .This will be evidence in case of any dispute as employee has given his consent for the same .
From India, Dehra Dun

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