Employee Termination Process and Full & Final Settlement Guidelines

Hello all,

Can anybody guide me on F&F procedures?

Please guide if an employee is given three months' notice and he is relieved after completion of one month of the notice period, does the company pay him the full salary for the next two months of the incomplete notice period?

Dear all seniors,

I am working in a private limited firm as an HR Manager. It has been 2 years since I joined the company. There is a situation where both a worker and a supervisor have completed 10 years of service in the company, but I have not found their performance satisfactory. Management is not pleased with their work efficiency.

In this regard, please advise me on the appropriate steps to terminate an employee or staff member who has served for 10 years. Kindly outline the procedure for their exit and the actions they may take against the company as well as the actions we need to take in response.

Please respond promptly!

Hi, @Yogeshmane,

I would like to suggest kindly refer to the Notice period clause in your appointment letter before proceeding with relieving formalities. Kindly meet your HR personnel and ask this question very politely. I think you will get the answers. Don't forget to attend: 1) Exit Interview, 2) Take your Experience & Relieving letter, 3) Fill the PF withdrawal/Transfer forms (if applicable). Feel free to revert for any confusion.

Regards,

Company should recover the notice period (the rest of the 2 months as per CTC). The company does not provide an Experience Release letter as well. It is possible that the company may give negative feedback during employee verification by the new company.

Please let me know if you need any further assistance or clarification.

No, the company is not bound or liable to pay for the next two months as he is relieved.

Dear Yogesh Mane,

First of all, you should identify why their performance is not satisfactory based on the job profile. Determine if there is a need for training. If necessary, provide training based on the analysis. If they willingly participate, you can issue a written warning after a verbal conversation. Ensure the notice is given and a signed copy is placed in their files. Once the benchmark is set, reevaluate their performance. If it remains unsatisfactory, you may proceed with issuing a termination letter, adhering to the notice period outlined in the appointment letter or company policy. If a notice period is given, compensation is not required; otherwise, the employer may be responsible for providing retrenchment benefits.

Kind regards,

[Your Name]

Dear Anonymous colleague,

With respect to your query, please note that both employees have already put in 10 years of continuous service in your company. It is not correct or justified to terminate their services one fine morning, stating that their performance is poor. Instead of negative reinforcement, why don't you think about positive reinforcement? That is to say, have a closed-door discussion with their department manager in their presence and try to identify the areas where their performance is falling short, recognize the training needs, and provide training. Please assess their performance after the training. You can make a decision after this exercise.

Thanks,
R K Nair

Hi all,

I have worked with an organization for 10 years with complete sincerity and dedication. In March this year, the company gave me notice for three months, stating that my performance is not as per expected. I left on 31st March since the company said that I would be relieved on 31st March 2014, and the remaining two months' notice would be adjusted against my leaves. They also confirmed that all dues would be cleared within one to 45 days from the relieving date.

As per my calculations, my pending dues include two months' salary, gratuity, LTA, and medical benefits as per my CTC. The final settlement (F & F amount) should be around 1.5 lakhs. For the past three months, I have been trying to contact HR and management through emails and phone calls, but no one has responded.

Furthermore, HR sent an email to all employees instructing them not to get in touch with me, alleging that I committed fraud in the organization. They warned that anyone contacting me would be terminated immediately.

Can anyone advise me on what steps I can take or if I can pursue legal action against the company?