Can We Stop Full & Final Payment On The Grounds Of Non Performance Of An Ex Employee?

Hi:
i want to ask - i have one Full & final case of a Non performer, he resigned my company 40 days back because management asked him to put down his papers because of Non performance.
His total tenure with company was 5 months & he was designated as - Sr. manager - Business development, & his salary was 45000 PM.
his performance was ZERO.. no Business...No client from his side in 5 months..!!
we have also issued one warning letter on shortfall of his performance in 3rd month...!! he was on probation as he was a non performer.
he resigned on 30th August, so his whole 1 month salary of august month is in full & final.. that we have to clear in November.
Now the problem is My Management do not want to pay him any single penny.. as he was a Non Performer... but that person is regularly following for his payment...!!
I want to know can i say NO to him for his August Month Salary on the grounds of Non Performance.
Please Help...!!
Regards
Parul

Hi Parul,
No We can't do this of not paying to him. Even though his performance is not good but he rendered services to company. So company has to pay to him as he served his services to the company.
Because of non performance itself he was out of company. Company should not say , we won't pay you salary because of non performance.
Regards,
Santosh

You don't have any right to stop his full and final settlement. you will be in loop if he proceeds legally. As he is a non perfomer hence you asked him to leave and he left the organization but you have to pay him for the days he worked.
If you have a component of Performance pay in his salary to that extent you can reduce otherwise you have to pay his salary.
Regards - kamesh

Hi Parul,
Any company can't stop employees salary though it is his last salary.
Now the question is of Full & Final Settlement, whatever amount generated for his full and final settlement you have to pay it. Here one thing i want to add that if there is loss of company you can debit the same to his settlement amount and also you have to explain him for that debit.
and as he had resigned on 30th August that means he had not served his probation notice period also (Many company deduct notice period of 7 days during probation resignation) so you can recover his 7 days salary as notice period.
Now on these grounds you can satisfy to your management and ex-employee also.
Regards,
Sanjay Mulay

Dear Mar. Sanjay:
In my Company we dont have any Notice period in probation period, & as such there is no loss to company in monetary value.The only thing is all investments done by my company on him in terms of - Salary , Training , Knowledge is now Zero... there is no revenue generation from his end..!!
Thanks all of you to guide me in this case.
Regards
Parul

Hi Parul,
If this is the case then you can't stop his full & final payment.
Regards,
Sanjay Mulay

Dear Parul,
As F&F involves many legal factors like PF, Leave encashment, salary, Reimbursements etc., Company can not stop his F&F.
If you are not processing his F&F which includes salary, you are unable to deposit PF against his F&F. As he has resigned in the month of Aug'11, you will have to submit Form-3A with his PF withdrawal form Which can not be issued till F&F settlement is completed. Legally company can not hold any ex-employees PF. Hence company will have to process his F&F to avoid legal complications.
Regards,
Amitav Nanda

Hi Parul,
You need to:
1] recover the shortfall in notice period, if he has stopped reporting immediately after tendering the resignation letter &/or after couple of days [difference in notice period and the period served by the employee after tendering the resignation letter]
2] settle his final dues, including his salary for 30 days or so of August; as legally you cannot hold back any payment/s due to an employee / him.
Ideally in such cases - at the end of the 3rd month, while issuing a warning letter - the Company should indicate to the employee that should his performance not come up to the expected level in the next one month or so [you need to certainly cover the notice period the Company is supposed to serve such an employee / probationers], then his services would stand terminated from the close of working hours of _________ [protecting the interest of the Company].
Yes, you can certainly stop or not pay him anything viz. variable income (incentives / commissions) that was linked to his performance.
regards

Hi CareerCruise,

I can understand your pain at having to bear losses through incompetent and unproductive employees. But here I would like to stress the importance of correct selection. The onus of selection rests solely on the employer. The window for evaluation of such performance should not exceed three months, which is the normal period of replacement through placement consultants like us. During this period you need to constantly follow the employee's performance and progress. You must learn to cut your losses at the earliest!

I am a retired Army officer, now a practicing placement consultant in Gurgaon. In the Army we have a saying: 'जो काम करता है उसे काम मिलता है,

बाकियों को तनख्वाह मिलती है' 'Anyone who works gets work. The rest are given pay'.

In this case simply pay and get rid of the problem.

Good luck for the future.

Aye.

Colonel Gahlot, Proprietor

'TRURECRUIT'

09810081197

hi
if an employee has served one month notice for the termination of his service to the company, during the notice period can he avail any kind of leave?