How Should HR Handle Requests for Extra Salary After Termination or Resignation?

Dear Team,

We have terminated three staff members, but the company agrees to pay their salary for the number of working days along with full and final settlement. Despite this, in this tough situation, an employee is asking for a two-month advance salary, which is against the law. Can anyone give suggestions? As the HR department, what necessary actions should be taken against such staff members?

Even if an employee resigns, the company agrees to pay the salary for the number of working days. However, an employee is unnecessarily requesting an extra 15 days' salary due to medical reasons for resignation, and the company immediately released the staff from services upon accepting the resignation. In such a case, demanding extra salary from the company is not appropriate. Can anyone suggest what actions should be preferred with employees? The company can pay the salary for the number of working days only, not extra salaries.

Thank you.

When any contract of employment gets terminated for whatever reason, the immediate follow-up process is the final settlement of all the dues pertaining to the terminated contract. Over and above the statutory dues, the exiting employee can ask for something more. Perhaps you might have mistaken it as an advance. If the demand seems reasonable to you in the wake of discharge during the lockdown and you're willing, well, consider complying with the demand fully or to some reasonable extent. Otherwise, you can simply reject it when the termination is lawful and the F&F already offered is strictly as per law and reasonable as well.

Understanding Notice Period Clauses in Appointment Letters

I would like to understand what clause you have mentioned for the notice period in the appointment letter in cases of resignation and termination. For example, if you have mentioned a one-month notice period during resignation, then the same should be applicable when terminating employees. In a normal scenario, when an employee resigns from a company, we ask them to serve the notice period or provide salary in lieu of the notice period. Therefore, when terminating employees, the employer has to pay the salary for the notice period to the employees.

I don't think the company should take any action against the employee because it is a fact that in this crisis situation, it will be very difficult for anyone to find a job. Therefore, you must also consider things from a humane perspective and settle matters by maintaining a neutral approach.