Is It Necessary to Process Full and Final Settlement for Terminated Employees?

If an employee is terminated due to misconduct, long absence, or non-performance, is it compulsory to process their F&F?

Note: Kindly inform the rule for the same.

Thanks & Regards,
B. Saravanan

Even if an employee is terminated for any act of misconduct such as absenteeism, insubordination, negligence, etc., by following the established procedure, the employer is required to make a final settlement with the employee, provided that the actions of the employee do not cause any financial loss to the employer's business.

Regards

Charan.Crew - the F&F is a full and final settlement and is defined as per the HR policy of your firm. If you don't have the HR policy drafted yet, it is better to do so since these issues frequently crop up.

In case an employee has been terminated due to a grave act of misconduct, you can only withhold their gratuity but will have to settle their FNF.

Regards,
S.K. Johri