Hi, I am a fresher in HR, working as an HR executive in a startup BPO for the past 2 months. I have the following queries. Please help me out:
1) Can we terminate a permanent employee or a confirmed employee if they are not performing?
2) In the full and final settlement, if an employee resigns without serving a notice period, do we have the right to deduct their basic salary for one month or gross salary for one month? When should we pay them their FNF? Is it after 45 days from the date of resignation or 45 days after the completion of the notice period?
3) When should we provide the employee with a relieving letter?
Thank you.
From India, Mumbai
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1) Can we terminate a permanent employee or a confirmed employee if they are not performing?
2) In the full and final settlement, if an employee resigns without serving a notice period, do we have the right to deduct their basic salary for one month or gross salary for one month? When should we pay them their FNF? Is it after 45 days from the date of resignation or 45 days after the completion of the notice period?
3) When should we provide the employee with a relieving letter?
Thank you.
From India, Mumbai
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Termination of Employment: Ensuring Fair Process
You cannot terminate the service of an employee without giving them an opportunity to be heard. Non-performance is an acceptable ground sufficient for termination, but it should not happen in a day or week. Before initiating such a step, they should be given a warning letter and provided an opportunity to improve their performance. Otherwise, their termination will be challenged as victimization, for which they may be reinstated if the Labour department intervenes.
Salary Considerations for Notice Pay
Salary for the purpose of notice pay shall depend upon the policy of the company. In the absence of any Standing Orders in this regard, the statutory salary, i.e., the Basic salary and the dearness allowance, shall be taken as salary for both termination wages as well as notice pay from the employee.
Full and Final Settlement
An employee whose service has been terminated is entitled to receive a full and final settlement of salary due within the close of the second working day following the day of their termination. The same shall apply to cases of resignation also. Therefore, the date of relieving is very important. If they have been in the notice period, the same should be treated as preparing their full and final settlement, and extending settlement for a further period of 45 days is unfair and illegal unless otherwise agreed upon by virtue of standing orders.
The relieving order should invariably be given on the date on which they are relieved.
Regards,
Madhu.T.K
From India, Kannur
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4537You cannot terminate the service of an employee without giving them an opportunity to be heard. Non-performance is an acceptable ground sufficient for termination, but it should not happen in a day or week. Before initiating such a step, they should be given a warning letter and provided an opportunity to improve their performance. Otherwise, their termination will be challenged as victimization, for which they may be reinstated if the Labour department intervenes.
Salary Considerations for Notice Pay
Salary for the purpose of notice pay shall depend upon the policy of the company. In the absence of any Standing Orders in this regard, the statutory salary, i.e., the Basic salary and the dearness allowance, shall be taken as salary for both termination wages as well as notice pay from the employee.
Full and Final Settlement
An employee whose service has been terminated is entitled to receive a full and final settlement of salary due within the close of the second working day following the day of their termination. The same shall apply to cases of resignation also. Therefore, the date of relieving is very important. If they have been in the notice period, the same should be treated as preparing their full and final settlement, and extending settlement for a further period of 45 days is unfair and illegal unless otherwise agreed upon by virtue of standing orders.
The relieving order should invariably be given on the date on which they are relieved.
Regards,
Madhu.T.K
From India, Kannur
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Full n final settlement.doc