Dear khan,
I think there is an ambiguity in your query.
An employee worked for a company for 5 years.
At a point of time, company was not happy with his performance and asked him to resign.
You state that they deducted 1 month salary from full and final.
A. Did they deduct salary for 1 month that the employee actually worked before he resigned ?
B. OR did they deduct salary for the notice period that the employee was not allowed to complete ?
If it is A, there is no excuse and the actin is both wrong in law and in principal / ethics
If it is B, they are free to relieve the employee immediately after resignation. It is the wish of the company. In terms of ethics, since they asked for resignation, they should have given him salary. In terms of legality, their action is not out of line (I am sure there is no written request to the employee to resign)
A bit depends also on the resignation letter. Did he say he will complete notice pay ? Or did he ask fro immediate relieving ?
I think there is an ambiguity in your query.
An employee worked for a company for 5 years.
At a point of time, company was not happy with his performance and asked him to resign.
You state that they deducted 1 month salary from full and final.
A. Did they deduct salary for 1 month that the employee actually worked before he resigned ?
B. OR did they deduct salary for the notice period that the employee was not allowed to complete ?
If it is A, there is no excuse and the actin is both wrong in law and in principal / ethics
If it is B, they are free to relieve the employee immediately after resignation. It is the wish of the company. In terms of ethics, since they asked for resignation, they should have given him salary. In terms of legality, their action is not out of line (I am sure there is no written request to the employee to resign)
A bit depends also on the resignation letter. Did he say he will complete notice pay ? Or did he ask fro immediate relieving ?