Facing Termination Due to Business Shortfall: When Should You Expect Your Final Settlement and PF?

If my company terminates me due to a shortfall of business, am I eligible to receive my full and final settlement along with PF on the day of termination? Please update me as our company is terminating employees, but their full and final settlement is taking much longer, and PF payments are also getting delayed.

Hi,

If your shortfall in business means only your performance, you are eligible for all settlements including your PF, grad (if applicable), and also salary for the notice period as agreed upon by both in the offer letter.

But if the company is terminating due to some disciplinary issues, then it's purely the company's sole decision.

Friends, kindly correct me if I am wrong!!

Regards, Akila

Since he has stated that he is being terminated due to a shortage of business, the question of termination following disciplinary action will arise, but it is a case of retrenchment. If your company wants to downsize the manpower, it can do so but following the relevant provisions of the Industrial Disputes Act. Intimation to retrench employees should be given to the Labor Department. If your company has an employment strength of 100 or more, not mere intimation but permission to retrench should be obtained from the government for retrenchment.

Similarly, you will be entitled to retrenchment compensation at the rate of 15 days' salary for every completed year of service. This is in addition to gratuity if applicable. Besides, you will also be entitled to one month notice pay if your service is terminated with immediate effect.

Regards,
Madhu.T.K