Long-time Employee Wants to Leave: How Should We Handle His Financial Settlements?

My dad is running a small-scale business with no more than 6-7 employees at any given time. One of his employees, who has been with the company for around 15-20 years, is now facing challenges staying in the organization and would like to leave the job.

1. His salary has gradually increased from 500 to 8000 over time (total salary including basic).
2. He also has an outstanding due of around 35,000 Rs.

Now, he is requesting a service certificate and is asking for some financial settlements. It seems like he may consider legal action if necessary. Please advise on the correct procedure.

Thanks,
Sreevidhya

Gratuity and Bonus Acts

1. Gratuity Act - Not Applicable.
2. Bonus Act - Not Applicable.

Factories Act and Leave Travel Assistance

3. Factories Act (Annual Leave with wages) - Not Applicable.
4. Leave Travel Assistance (Based on Terms & Conditions of Employment).

Provident Fund and Employee State Insurance

5. PF & ESI Act - Not Applicable.

Required Documents

You need to provide the following documents:
A) Service Certificate.
B) No Dues Certificate from all departments & Relieving letter.

Financial Liabilities

Your father is liable to pay:
1) Salary during the month.
2) Unpaid salary (if any).
Less deductions (e.g., Loans & Advances, Others, etc.).

If earnings are more than deductions, you may release the above certificates. If deductions are more than earnings, you may hold the above certificates.

Regards