Respected Professionals,
I want to know regarding F&F settlement in case of termination. We had terminated an employee on an immediate basis due to non-performance. He was still on probation, but even after warnings, his performance did not improve. While processing his full and final settlement, we found that he did not fill out his timesheets for the single day when he was in the organization (this is one of our policies to fill timesheets timely).
So, in this case, is the company bound to pay his full and final amount? Also, I would like to know what the mail content could be to inform him about the same.
Waiting for the prompt response.
From India, Delhi
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1I want to know regarding F&F settlement in case of termination. We had terminated an employee on an immediate basis due to non-performance. He was still on probation, but even after warnings, his performance did not improve. While processing his full and final settlement, we found that he did not fill out his timesheets for the single day when he was in the organization (this is one of our policies to fill timesheets timely).
So, in this case, is the company bound to pay his full and final amount? Also, I would like to know what the mail content could be to inform him about the same.
Waiting for the prompt response.
From India, Delhi
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Dear Nidhi Singh,
The newly appointed employee did not perform to the expectations of the company. For the underperformance, your company has terminated the employee. However, the question arises as to whether you had communicated in writing what the performance expectations were and if he accepted this official notice.
Secondly, if the employee did not meet your performance requirements, then you have already imposed a punishment. However, there can only be one punishment for one misconduct. "Termination from employment" is the most severe punishment. So, where is the justification for withholding the employee's dues? Why consider giving an additional punishment for the same misconduct? This goes against the principles of natural justice.
If the employee failed to fill in the timesheets, when was this discovered and by whom? Did the employee's reporting manager or supervisor bring this to the authorities' attention? If the timesheets were not completed on time, was an official warning issued to the employee in question? If not, who is at fault? Is it the defaulting employee or his seniors?
In summary, I recommend that you pay the employee his dues up to his last working day and close the matter. Regardless of the type of misconduct, every employee is entitled to receive their salaries and wages until their last working day.
Thanks,
Dinesh Divekar
From India, Bangalore
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The newly appointed employee did not perform to the expectations of the company. For the underperformance, your company has terminated the employee. However, the question arises as to whether you had communicated in writing what the performance expectations were and if he accepted this official notice.
Secondly, if the employee did not meet your performance requirements, then you have already imposed a punishment. However, there can only be one punishment for one misconduct. "Termination from employment" is the most severe punishment. So, where is the justification for withholding the employee's dues? Why consider giving an additional punishment for the same misconduct? This goes against the principles of natural justice.
If the employee failed to fill in the timesheets, when was this discovered and by whom? Did the employee's reporting manager or supervisor bring this to the authorities' attention? If the timesheets were not completed on time, was an official warning issued to the employee in question? If not, who is at fault? Is it the defaulting employee or his seniors?
In summary, I recommend that you pay the employee his dues up to his last working day and close the matter. Regardless of the type of misconduct, every employee is entitled to receive their salaries and wages until their last working day.
Thanks,
Dinesh Divekar
From India, Bangalore
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Hi Nidhi,
During probation, if the employee is covered under the definition of "workman" under Section 2(s) of the Industrial Disputes Act, 1947, and has completed 240 days, they are entitled to be paid retrenchment compensation simultaneously with the act of termination. Employers must comply with this legal requirement. I hope that when you terminated his services, he had not completed 240 days in your organization.
S. K. Mittal
9319956443
From India, Faridabad
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During probation, if the employee is covered under the definition of "workman" under Section 2(s) of the Industrial Disputes Act, 1947, and has completed 240 days, they are entitled to be paid retrenchment compensation simultaneously with the act of termination. Employers must comply with this legal requirement. I hope that when you terminated his services, he had not completed 240 days in your organization.
S. K. Mittal
9319956443
From India, Faridabad
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The denial of F&F benefits for not filling up the timesheet is not proper and justified. Filling the timesheet is to indicate the amount of time spent on each job assigned. It is not the only job the employee was assigned. So you need to either construct his timesheet or presume, in general, that he has worked on all the days and pay accordingly. The principle of 'no work, no pay' is not attracted here unless you can show that the employee has not done any work, as is evident from his timesheet. But before drawing a conclusion, you need to seek the views of the concerned employee. You can write, stating that while considering F&F settlement, it is noticed that the time logs are empty and there is no account of the work done since ../../.. So in the absence of such details, it is not possible to consider the payment of any compensation or benefit.
From India, Mumbai
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From India, Mumbai
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Dear Madam,
You will appreciate that the subject of an employee's termination is to be handled carefully.
Simple termination during the probationary period is subject to the notice period stipulation in the appointment letter as well as following the due process of law, particularly if the termination is due to any misconduct or performance issue, as in your case.
It is not clear from your post whether you paid due attention to both. There is an impression that perhaps you acted hastily in the termination process.
Normally, a probationer is terminated for any reason whatsoever on the last day of the probation period to avoid legal complications. Another HR practice is to obtain his/her resignation, allowing them to leave without any blemish on their career.
You mentioned that you had warned the probationary employee about unsatisfactory performance. I hope you did so in writing and also for not maintaining the timesheets.
Regarding his Full and Final (F&F) settlement, you should proceed to pay all his dues if he has worked for the full period. For his alleged non-submission of the timesheets, he cannot be solely blamed as there are also laxities on your part.
It would have been legitimate to withhold the F&F settlement if the employee's conduct had caused any monetary losses, which does not seem to be the case here.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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You will appreciate that the subject of an employee's termination is to be handled carefully.
Simple termination during the probationary period is subject to the notice period stipulation in the appointment letter as well as following the due process of law, particularly if the termination is due to any misconduct or performance issue, as in your case.
It is not clear from your post whether you paid due attention to both. There is an impression that perhaps you acted hastily in the termination process.
Normally, a probationer is terminated for any reason whatsoever on the last day of the probation period to avoid legal complications. Another HR practice is to obtain his/her resignation, allowing them to leave without any blemish on their career.
You mentioned that you had warned the probationary employee about unsatisfactory performance. I hope you did so in writing and also for not maintaining the timesheets.
Regarding his Full and Final (F&F) settlement, you should proceed to pay all his dues if he has worked for the full period. For his alleged non-submission of the timesheets, he cannot be solely blamed as there are also laxities on your part.
It would have been legitimate to withhold the F&F settlement if the employee's conduct had caused any monetary losses, which does not seem to be the case here.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Mr. Vinayak and Mr. Divekar have clearly and concisely brought out answers to the query.
Non-filling of timesheets is not that big an issue to withhold F & F.
Non-submission of the daily timesheet should have been monitored, and the employee cautioned by the immediate supervisor/superior, etc.
A lot depends on your appointment letter and the terms of the accepted probation period norms.
I do hope the company has followed the norms of notice and counseling during probation and, still seeing no improvement, terminated him.
Individual employees make mistakes, but the organization, with its own checks and counterchecks, is expected to be more correct and complete in its responsibilities.
Paying F & F will be a good HR practice and will keep the company's name on a higher pedestal as one that honors its side of responsibility towards employees.
Withholding should be only as a last resort with absolutely documented reasons that are justifiable in a court of law.
From India, Pune
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Non-filling of timesheets is not that big an issue to withhold F & F.
Non-submission of the daily timesheet should have been monitored, and the employee cautioned by the immediate supervisor/superior, etc.
A lot depends on your appointment letter and the terms of the accepted probation period norms.
I do hope the company has followed the norms of notice and counseling during probation and, still seeing no improvement, terminated him.
Individual employees make mistakes, but the organization, with its own checks and counterchecks, is expected to be more correct and complete in its responsibilities.
Paying F & F will be a good HR practice and will keep the company's name on a higher pedestal as one that honors its side of responsibility towards employees.
Withholding should be only as a last resort with absolutely documented reasons that are justifiable in a court of law.
From India, Pune
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Dear Ms. Nidhi,
In all fairness and professional ethics, and legally, you are bound to carry out full and final settlement of the account and pay the dues as per the terms of the appointment/contract/agreement, including any applicable compensation.
Best Wishes,
Syed Arshad H. Rizvi
From India
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In all fairness and professional ethics, and legally, you are bound to carry out full and final settlement of the account and pay the dues as per the terms of the appointment/contract/agreement, including any applicable compensation.
Best Wishes,
Syed Arshad H. Rizvi
From India
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If a employees failure to perform its obligation amounts to a fundamental non-performance, the organization may terminate the contract.
From India, Pune
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From India, Pune
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A good query Nidhi and contribution by the team. I view the same as already expressed above. In all fairness and ethics, an employee on probation or otherwise cannot be deprived of being fairly treated and cannot hold his full and final settlement. Of course, for the reason of non-performance, the probationary employee may be terminated immediately. Not filling a day's sheet does not justify any reason to hold final settlement.
Regards,
Brijesh Jadhav
From India
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Regards,
Brijesh Jadhav
From India
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Please refer to the appointment letter of that employee (hope the employee has also signed). The clause of termination is mentioned in the appointment letter, i.e., in general, the employee is put on probation for 6 months or one year. This will be evidence in case of any dispute as the employee has given his consent for the same.
From India, Dehra Dun
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From India, Dehra Dun
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