If an employee is terminated due to any reason, in our case, it's non-performance. Then in the Full and Final settlement reason, it needs to be mentioned as Date of Joining is April 26th, 2021, and Date of Leaving (terminated on) December 6th, 2021 (Total of 7 months). Or can we give a regular Full and Final settlement letter like we give to all other employees who resign after serving the notice period.
From India, Mumbai
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From India, Mumbai
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It is your choice whether the employee gets a normal F&F or one specifically stating she has been terminated.
From India, Mumbai
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2501From India, Mumbai
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It is not clear whether the organization has been given a reasonable opportunity to the employee to improve upon his/her performance-related issues. Even after providing a reasonable opportunity, the concerned employee has not been able to improve the performance level; then, it is better to ask for resignation, which is better for both the employer and employee. Full and Final settlement should be as per the policy of the organization without depriving the employee. There is no need to serve the notice period if the employee had been allowed time to improve the performance level earlier.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531
www.usdhrs.in
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531
From India, New Delhi
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Dear Colleague,
As rightly guided by our colleagues:
Add:
- Kindly ensure you have given all reasonable opportunities to the employee to improve performance. Provide adequate time for the employee to explain his/her side regarding the performance challenges. If you have done so within the mentioned time period, it is not correct to refer to a "performance gap."
If you have supported/provided every opportunity and have sufficient records to prove this, then if you decide to conclude the services based on performance grounds, consider it a win-win situation:
- Issue a separate letter outlining the performance gaps and state that the employee will be relieved from service on these grounds.
- However, in the full and final settlement (F&F) and relieving order, refrain from mentioning anything that could adversely impact the employee's future employment. Conduct a standard relieving process as documented in a separate letter to protect the management's interests.
From India, Chennai
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As rightly guided by our colleagues:
Add:
- Kindly ensure you have given all reasonable opportunities to the employee to improve performance. Provide adequate time for the employee to explain his/her side regarding the performance challenges. If you have done so within the mentioned time period, it is not correct to refer to a "performance gap."
If you have supported/provided every opportunity and have sufficient records to prove this, then if you decide to conclude the services based on performance grounds, consider it a win-win situation:
- Issue a separate letter outlining the performance gaps and state that the employee will be relieved from service on these grounds.
- However, in the full and final settlement (F&F) and relieving order, refrain from mentioning anything that could adversely impact the employee's future employment. Conduct a standard relieving process as documented in a separate letter to protect the management's interests.
From India, Chennai
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Former employee saying that he will collect FNF cheque when he is available. What if 3 months pass away and the cheque expires? Will it be the company's responsibility to reissue a new cheque? The former employee can't remove 1 hour from his schedule to attend FNF.
From India, Mumbai
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From India, Mumbai
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Dear Colleague,
Keep that expired cheque for your records. Prepare a fresh cheque. If all dues are collected from the employee, then send the cheque by post under Registered post or do the F&F by online credit. There ends the job. Keep records for your reference and for any litigation later; you may produce this. The company will have thousands of other jobs than to follow someone for their F&F. In case the previous bank account was closed or if the cheque is also returned undelivered, then deposit the same to the Labour Authority who has jurisdiction under the Payment of Wages Act with details of the employee and other particulars in a clear letter. There ends our job as required by law.
From India, Chennai
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Keep that expired cheque for your records. Prepare a fresh cheque. If all dues are collected from the employee, then send the cheque by post under Registered post or do the F&F by online credit. There ends the job. Keep records for your reference and for any litigation later; you may produce this. The company will have thousands of other jobs than to follow someone for their F&F. In case the previous bank account was closed or if the cheque is also returned undelivered, then deposit the same to the Labour Authority who has jurisdiction under the Payment of Wages Act with details of the employee and other particulars in a clear letter. There ends our job as required by law.
From India, Chennai
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Sayali,
This is 2021. Why are you making a cheque and asking him to collect it? You are asking why he can't take an hour to come and settle it, but to me, it would look like you are specifically harassing him. You want him to take time off from his current (new) employment, then travel (whatever time it takes him) to come and collect his FNF.
Either he is not bothered with your amount or he does not have the time.
What stops you from:
a. couriering the cheque (with proof of delivery obtained)
b. asking him for his bank details (which you should actually already have) and remitting the money in NEFT / RTGS?
In either case, you can always send a WhatsApp or email to him informing him of the action taken and informing him that since he has not come, this is the basis of FNF and its the final settlement.
It would be a simple thing to do.
From India, Mumbai
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This is 2021. Why are you making a cheque and asking him to collect it? You are asking why he can't take an hour to come and settle it, but to me, it would look like you are specifically harassing him. You want him to take time off from his current (new) employment, then travel (whatever time it takes him) to come and collect his FNF.
Either he is not bothered with your amount or he does not have the time.
What stops you from:
a. couriering the cheque (with proof of delivery obtained)
b. asking him for his bank details (which you should actually already have) and remitting the money in NEFT / RTGS?
In either case, you can always send a WhatsApp or email to him informing him of the action taken and informing him that since he has not come, this is the basis of FNF and its the final settlement.
It would be a simple thing to do.
From India, Mumbai
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Full n final settlement.doc
Full & Final Payment.xls