Dear friend,
The issue has been blown out of proportion from both the sides. By the way, are you from HR or you are the owner of the company?
Performance of the every employee cannot be the same. Few are smart and few laggards. Against this backdrop, for the under-performance of one of the employees, you have removed him. Can there be any severe punishment than termination of services? But then it appears that you had been vindictive. By doing this, collateral damage is your current predicament.
Have you received summons from the court? Before receiving the summons, did you receive notice from the lawyer or has the petition been filed without giving notice? If you had received the notice then why you did not call the employee and clear the dues?
Well gentleman, cases in the court are not fought by taking high moral stand. False allegations is a norm in all types of cases and labour cases are no exception.
If you have received summons from the court, then when the very first hearing takes place, ask for referring the case for the mediation. Before doing this, call the employee and work out the suitable deal. Naturally, this will cost more but instead of full-fledged litigation, cost will be less. You have given invitation to the trouble. In Hindi it is called as आ बैल मुझे मार whose English equivalent is to stick one's chin out.
The case needs analysis from management science point of view also. When the employee was recruited? If in the recent past, then it is recruitment failure? Who were involved in the recruitment of the employee? Have you taken action against them? Why his performance was subnormal? Did you investigate the causes? What kind of support his HOD give to pull the performance? Who gave him motivational support?
The second failure is communication with the employee. Occasionally, there could be delay on settlement of the dues. Were you in constant touch with the employee and moreover how this delay was communicated?
The next failure is improper separation from the company. Why there was delay? Who was responsible? Is it system failure or there is system but people failed the system? If latter, what action will you take for the unreasonable delay?
Now you say that you wanted to give negative remarks in the experience letter. In spite of receiving court's summons, if fiendishness within you pops out, if wisdom has not prevailed upon you, then god bless you gentleman!
Thanks,
Dinesh Divekar
P. S.: - Possibly, my post could be strong worded. However, it is more on unprofessional handling of the entire entire sequence of events. Therefore, please do not take it personally.