Can an F&F Settlement Form Be Legally Challenged or Used as Proof of Termination?

Dear Seniors,

Can an F&F settlement form be legally challenged or used as legal proof of separation or termination of an employee by the employer if any questions arise? Is there a legal definition or legal format of the F&F settlement form, and any legal act that defines the F&F settlement process? Please guide me on this.

Thanks and Regards,

Legal Process for F&F Settlement

No legal process, per se. Each case can be brought up and dealt with on a case-by-case basis under the provisions of the applicable labor act.

Regards,
Deepak_2006

Dear Seniors,

Thank you for your suggestions. I am working in a manufacturing company, and I have encountered a case regarding the F&F process in my company.

An electrician has sent a legal notice to the company claiming that he was terminated without any prior notice or information. However, this statement is false. The company released him on his desired date before completing his notice period and cleared all his dues. We have only one record of this settlement - our F&F settlement form and a No dues letter, both of which are signed by him.

In response to the legal notice, we are unable to use our F&F settlement form and No dues letter. According to our advocate, they are considered mere pieces of paper and cannot serve as legal proof of his separation.

As the HR representative of the company, it is my responsibility to create a new Full & Final Settlement form based on legal acts that can be used as legal proof in such situations. I am in agreement with the company management that there needs to be a permanent legal solution to address these issues.

I appreciate your input and solutions to this matter.

Best Regards,

Deepak Agarwal

Incomplete Information and Resignation Process

The information is still incomplete. Has the electrician in question resigned? Do you have the resignation letter? Have you given him an acceptance of the same? Is there a written request asking for an early leaving? If you do not have the above, then you need to create a process in your company where these documents are taken whenever somebody wants to leave.

When someone leaves on short or no notice, you should create an internal memo showing the number of days of short notice and the cost of the same being set off against the amount of salary due for the days worked. It is not the format of F&F but the supporting documents that need to be kept. Your problem here seems to be more with the fact that you don't have a resignation letter in the first place.

Payment of Wages on Termination

The Factories Act requires that payment of wages upon termination of employment (which includes resignation) must be made within two working days. Additionally, all pending leave should be encashed at the full salary rate. Similar provisions exist in most shops and establishments.

Understanding "Full and Final Settlement"

1. As far as I understand, the term "settlement" is a matter of industrial dispute, and the term "full and final settlement" has not been defined anywhere in any of the labor laws. In my opinion, it simply means that as an employer, all legal claims/dues have been paid to the employee/workman, and on behalf of the employee/workman, it can be considered that he has returned/paid all the goods or dues, in the form of loans, etc., to his employer.

2. Even if any form of "full and final settlement" is devised and put to use, in my opinion, it will be of no legal utility or use since, even after signing the said form, the aggrieved employee/workman can still claim dues that were not paid to him, though payable under any law in force. However, such subsequent claims of the workman/employee can be raised within the time limitation as laid down under law.

3. The said proforma of "full and final settlement," as mentioned by the member who raised this thread, if put to use, can also be used against the employer in situations where it is later found that some article, etc., is to be recovered from the former employee/workman. Also, in cases of misappropriation or fraud detected after leaving the job and after signing the said form of "full and final settlement."