Are We Legally Required to Pay Full and Final Settlement After Integrity Violation?

We terminated an employee for taking unauthorized remote access of his office computer from home multiple times. The company has recordings of these incidents, and the employee admitted to this in a written explanation. The employee is now requesting his FnF (Full and Final settlement) and threatening legal action if we do not pay up.

Liability for Full and Final Settlement

Are we liable to pay him his FnF as per labor law?

Regards

If there is a provision under your standing order/service rules regarding unauthorized access to the office computer from home, and it constitutes misconduct, then terminating the services of such an employee may be correct. However, it must be proved how the employee's actions have been detrimental to the company's financial interests.

Even in cases where an employee's services are terminated by the employer, the Full and Final settlement could not be withheld on the grounds of termination of an employee's services unless the employee's actions cause financial losses to the company. Therefore, the final settlement of a terminated employee should be completed immediately, or else it may lead to further complications.

Regards

Employer Obligations Under the Shops and Establishment Act

Under the Shops and Establishment Act, the employer is obligated to provide the employees' dues at the time of discharge; otherwise, penal provisions come into play.

Does the employee have to be paid their notice period salary in such a case? For example, should it be for 1 month/2 months, or should it only be settled with the days they have worked? Please suggest.