[fireant911]

yasir,
My wife is an Human Resources Manager and although she knows nothing about your question, I have been around her long enough to know the answer: pay the employee what is owed (including any accrued vacation) and move on. It is not worth trying to do any 'adjustments' regardless of how valid they may appear. The courts will look harshly upon your behavior if it ever makes it that far and you will be paying much, much more than advertising and the associated expenses of locating a replacement.