Hi,
I am a fresher in HR. Working as an HR executive in a start up BPO since 2 months. I have following queries: Pls help me out...
1) Can we terminate a permanent employee or a confirmed employee if he is not performing?
2) In full n final settlement if an employee resigns without serving a notice period then do we have a right to deduct his basic salary of 1 month or gross salary of 1 month and when do we pay him his FNF? Is it after 45 days from the date of resigning or 45 days after the date of completion of notice period?
3) And when do we give him a relieving letter?
From India, Mumbai
I am a fresher in HR. Working as an HR executive in a start up BPO since 2 months. I have following queries: Pls help me out...
1) Can we terminate a permanent employee or a confirmed employee if he is not performing?
2) In full n final settlement if an employee resigns without serving a notice period then do we have a right to deduct his basic salary of 1 month or gross salary of 1 month and when do we pay him his FNF? Is it after 45 days from the date of resigning or 45 days after the date of completion of notice period?
3) And when do we give him a relieving letter?
From India, Mumbai
You can not terminate the service of an employee without giving him 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 he should be given a warning letter and given an opportunity to improve his performance. Otherwise, his termination will be challenged as victimisation for which he may get reinstatement if Labour department is intervened.
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, ie, the Basic salary and the dearness allowance shall be taken as salary for both, ie, termination wages as well as notice pay from the employee.
An employee whose service has been terminated is entitled to get full and final settlement of salary due within the close of the second working day following the day of his termination. The same shall apply to cases of resignation also. Therefore, the date of reliving is very important. If he has been in notice period the same should be treated as preparing his 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 he is relieved.
Regards,
Madhu.T.K
From India, Kannur
4250Salary 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, ie, the Basic salary and the dearness allowance shall be taken as salary for both, ie, termination wages as well as notice pay from the employee.
An employee whose service has been terminated is entitled to get full and final settlement of salary due within the close of the second working day following the day of his termination. The same shall apply to cases of resignation also. Therefore, the date of reliving is very important. If he has been in notice period the same should be treated as preparing his 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 he is relieved.
Regards,
Madhu.T.K
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Full n final settlement.doc