Employee Termination: How Quickly Can We Finalize His Settlement After Notice?

We have given notice of separation to one of our employees due to the redundancy of the post. The company has provided a full 90 days' notice to the employee and is paying his monthly salary on time. How soon can we complete his full and final settlement?

In Section 5 of the Payment of Wages Act, 1936, it is mentioned that terminal dues are payable by the second working day following the date of termination. Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated.

You can refer to this provision for guidance.