Understanding Full and Final Settlement: Can We Delay FNF for Misconduct or Poor Performance?

I would like to understand the Full and Final Settlement Procedure of an employee in the following cases:

1) Misconduct / Disciplinary Issues

2) Termination on the basis of Non-Performance

How many days does the company take to complete the FNF process in both cases, and can we hold back the FNF for an individual?

Hi Kunal,

Full and Final settlement of the employee cannot be held back by the employer even if the reason for separation is misconduct, disciplinary issues, or non-performance. However, if the nature of misconduct is related to financial loss incurred by the company, misappropriation of funds, or any loss made to the company, in such cases, the employer has the right to hold the settlement and conduct legal proceedings, like suspension followed by a domestic enquiry.

Thank you for your response.

In the case of termination based on performance, do we need to prioritize clearing the full and final settlement, or should it also align with the policy of 30-45 days?