• Employee reliving - final settlement - formalities

Dear Sir,
An Employee worked with us for 19 years  as a clerk, Last week there has been some miss behavior  attitude towards day to day office activities.
In a state of anger the employee expressed the desire to quit and requires settlement.

Now we require some guidance from your side , like:
1. On discontinuance of the service what are the obligations required to be fulfilled and secured 
before reliving the employee with settlement amount and gratuity.
Any thing to be taken on non judicial papers, etc.

Kindly guide for smooth roll out.

Reply me at : reimds@yahoo.co.in
Asked 2 years ago in Labour from Chennai, Tamil Nadu
1. Are you thr employee or the employer?

2. If you are the employer desiring to release the employee fro his services, engage a local lawyer  to guide you in the matter.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
229 Consultations
5.0 on 5.0
1. Just expressing to quit in a fit of anger does not amount to resignation of an employee working for 18 years,

2. You need to have his proper resiagation,

3. On receipt of his resignation letter with proper notice, you shall have to make ready to settle all his dues on the last day of his working,

4. On the last day of his working , you should settle all his dues and issue him a release order.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
229 Consultations
5.0 on 5.0
1. No, this is not the way an employee is released legally,

2. Follow the procedure suggested above first,

3. Pay all the dues through cheque/DD.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
229 Consultations
5.0 on 5.0
Based on the employee's resignation letter, the date on which he desires to be relieved has to be looked into.  If there is a notice period, on either side, i.e.,employee & employer, check that with reference to the desired date of relieving and act accordingly. Then you have to prepare the acceptance of resignation letter and the date of relief  of the employee from the service of the company  and inform the employee and name the other employee who should take charge of his work.  The employee has to prepare an inventory to show what all the official documents are there in his possession and hand over all the official documents & petty cash, if any, to the other employee who is taking charge in his place. Then the employer has to prepare the resigned employee's dues like Salary due, Leave encashment due, Bonus due, Gratuity due etc.. and any recoveries to be made out of this due amount.  PF forms have to be filled and to submit the same to PF department. Any important pending work can be got done from the employee, before he is relieved. Payment due to the employee have to be made through crossed cheque or DD only and obtain acknowledgement for the same from employee and also a paper publication of public notice, if need be, informing the public that such & such an employee is no longer in service with us from such & such a day and any acts or things in relation to the company which are committed by the employee subsequent to the date of relief from the company is not binding on the company.
Shashidhar S. Sastry
Advocate, Bangalore
1233 Answers
59 Consultations
5.0 on 5.0

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