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Firing an Employee : Legal considerations startups should know

Sometimes businesses have to make the the hard decision of Firing an employee. It could be over bad performance or a breach of contract. It often gets messy. The eLagaan team explains what you need to consider before firing an employee.

The key to smoothly letting go of an employee is to start right in the beginning when you are hiring someone. Make sure that a proper offer letter  is drafted & terms are clearly defined while hiring.

Before you go ahead and let go of your employee, we recommend that you should try your best to provide them opportunity to improve.  If there are no improvements, a proper notice should be given. Also it is highly recommended that you ask the employee to resign rather then you firing them.

Before you let them go, make sure that you complete the Full & Final settlement related to accounting/Finance. Also, the employer should consider getting a no-due declaration from the employee before issuing the relieving letter and making the the settlement.