How to Handle Termination and Final Settlements in a Small Startup?

ravi6740
Hi all, this is Ravikumar. I am working as an HR Generalist in a startup company. There is one candidate whose performance is not good. We have already given him a warning letter more than two times, but he has not proven himself. Please find the queries below:

1. Is it necessary to give an experience letter?
2. When do we have to clear the final settlement?

Kindly suggest the termination procedure.

Regards, Ravikumar HR Generalist
Ashoknegidi
Please issue him the experience letter stating that "his services have been satisfactory."

Additionally, kindly process the Full and Final (F&F) settlement as per your company policy, similar to how it is done for other employees.
ravi6740
Thank you, Ashok, but he is working as a permanent employee. In the offer letter, we mentioned a 1-month notice period. Is it possible to terminate him immediately, or does he have to serve the notice period for 1 month?

Regards,
Ravikumar
Ashoknegidi
You can terminate the permanent employee as well. Give him one month's notice, or you can terminate him immediately, but you need to pay him one month's salary. Which option works best for you?
Dinesh Divekar
Replies to your queries are as below:

1. Is it necessary to give an experience letter?

Please check the following link to read my reply to the past post: https://www.citehr.com/280132-can-we...ml#post1262808

2. When do we have to clear the final settlement?

How many months or years has that person worked? Let that person work until the end of this month. If he has worked for less than one month, then his monthly salary itself will be the FnF settlement. Have you allocated any company property to that person? If yes, then withdraw it from him now.

Ok...

Regards,
Dinesh V Divekar
ravi6740
Hi Dinesh V Divekar, hope you are doing well! He has been working since January 2013. If we terminate the candidate, when do we need to clear the final settlement - either on the last working day of the candidate or after one month as per the offer letter?

Regards, Ravikumar
ravi6740
Thank you. One more question: when do we need to clear the final settlement—on the last working day of the candidate or after one month as per the offer letter?

Regards,
Ravikumar
Ashoknegidi
It's absolutely absurd after a month. Don't clear F&F when it's his last working day.
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