Final Settlement For Bad Conduct Employee

Hello Sir,
I run a propreitorship trading company. My driver who had been working for me for past 20 years has left on is own last year (2014) due to misconduct he did and was caught red handed. He did not even contact me until yesterday. He called me and asks for compensation on account of his service for 20 years. I had paid him his regular salary up to date. So should i pay him anything now? If not, how can i defend myself? the problem here is that he has left on his own without any notice and it majorly affected our business operations for the next few months till we found another driver.
Please advise.
Sadiq

Dear Mr Sadiq,
I recommend you conducting the domestic enquiry. Give the employee to defend his case. If his misconduct is proved then you may terminate his services.
He has worked for a long time in your company. There is every chance of these type of persons to approach labour court. Therefore, it is important for you to maintain proper records of his termination.
If the employee were to get separated under normal circumstances then he would have become eligible for gratuity. However, on termination under disciplinary grounds, he could forfeit his gratuity.
Lastly, once you had evidence of his misconduct then what was the need to pay his his regular wages is not understood. You should ordered domestic enquiry sooner this scandal came to light.
Thanks,
Dinesh Divekar

First, you need to give us details of your business, size and nature of operations
How many people work in your company
What is the nature of duty your driver was doing

Dear Mr.Sadiq,
From your post, the follwowing emeges--
1.The driver worked for 20 years
2.There was some misconduct issue but not action was taken by you
3.The driver absented himself/left without any notice
What is not clear is that what is the notice period clause in the appointment letter.
Not withstanding the notice period issue, he is to be paid following:-
1.Gratuity
2.Earned leave --encashment --max 45 days-- in case he has leave in credit
3.You may deduct notice period salary --in case it was stipulated in the appointment letter
Regards,
Col.Suresh Rathi