We are a small setup of 25 employees based in Noida. We have ambiguity regarding the duration for full and final settlement of the employees after their separation (Voluntary or involuntary). The FnF amount includes the unpaid salary, leave adjustments, allowances and bonuses etc. All is paid at once during FnF.
I have 2 questions:
Is there any specific law/ guideline regarding the timeline of the settlement that we should follow?
I would request you to share the law as applicable.
How is the salary for that particular period paid? For Eg: If an employee’s notice period starts from 25th Jan, then his Jan month salary will be included in the routine payroll or will it be included in FnF? Or can we pay salary till 24th Jan in the payroll and the salary for the days of notice period in the FnF settlement?
Request you to kindly shed light on this.