Is Full & Final Settlement Possible After Termination for Data Theft in India?

Hello all, I have a query regarding F&F as per Indian Labor Law. Is an employee eligible for F&F settlement if he/she is terminated by the company on grounds of illegal activities and data theft from the company?

Hello, it is really shocking to know that an employee can act in such a dishonest manner.

Termination and Forfeiture Procedures

Now, to the query. I am sure that the services of the employee must have been terminated after holding a proper domestic inquiry and following the principles of natural justice. The fact of forfeiting his/her terminal dues, with the quantum of it, must have been mentioned in the termination letter, including gratuity, if payable, under the PG Act.

If this clause has not been mentioned in the termination letter, then a corrigendum should be issued by the Disciplinary Authority or by the HR Head with the approval of the Disciplinary Authority. If this procedure is not followed, forfeiture of the payable amount, no matter what the quantum is, shall be liable to be challenged in the Court of Law.

The F&F is out of the question in the case of termination for theft. The employee is eligible for F&F, but the settlement gets adjusted to the loss or damage caused, as per the law.

Hello, The F&F is a compulsory process in the case of separation of an employee. Termination is a form of separation. Please complete this process on time and ensure it is signed by the concerned employee. Failure to do so could lead to potential trouble for the employer if the employee decides to file a case against his/her termination.

Thanks and regards,

Hello, F&F is the process in which employers demonstrate that there is nothing pending from their side. In this case, the employee is eligible for any amount that remains after deducting any dues, including fines and losses to the company. It also helps the employer avoid any future legal complications.

Regards, Sunil