Dinesh Divekar
Business Mentor, Consultant And Trainer
Malikjs
Gm (hr)
Amruta AB
Still Trying To Be An Expert
Charanjit Kaur
Manager (hr)
+3 Others

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Dear All,
After full and final settlement of an ex-employee, many a times there is recovery from him/her. Some times when the amount is negligible and we can let go of it. But sometimes the amount can not be ignored. In such cases employees go absconding, don't pick up your calls or reply to your mails. We only sit waiting for the mails/cheques/response and they never come. How to deal with such cases. Are there any agencies doing such a work for business recoveries? Kindly guide.

From India, Pune
dear
if your outstanding is justified than you can file a case against individual for recovery.
these type of procedures are very lengthy and takes lot of time .you have to spend lot of amount to hire good advocate still chance to getting recovery is less.
regards
js malik

From India, Delhi
Dear Amruta,
An employee owes something to the company then how come it is not discovered in full and final settlement?
If this is what happening then you need to improve your way of working. Improve your records management. Periodically obtain signature from the employees on the loan cards. Obtain agreements from the employees for the usage of company-given items and so on.
Constitute internal audit team. This team should inspect the records of every department. Tell every department to maintain their own inventory. HOD of each department is responsible for maintaining this inventory. He/she should do handing/ taking over of this inventory whenever he/she goes on long leave.
If you do all this, possibly it will increase job of HODs but you will be organised surely.
Ok...
Dinesh V Divekar




From India, Bangalore
Thank you Mr. Malik and Mr. Divekar.
Referring to Mr. Divekar's question at the start-
Every time employee doesn't need to have any loan issues with the company.
As per the policy we have three months of notice period. so that's how, many a times, they need to pay us this notice if they resign with immediate effect. As far as loans and other financial issues are concerned, we have efficient system in place. But still, few just go absconding and we keep following up/wait for months.

From India, Pune
Dear Amruta AB,

I am confused how can there be notice period recovery for absconding employees. In most of the organisation when employee is absconding then hr will follow due procedure and terminate the employee and issue voluntary absconding letter. In this case there will be no notice period recovery (organisation is terminating employee because employee lost lien over job) and hr will not give reliving letter.

Now if employee resign from the job but do not serve notice period. Then at time of Full & final settlement hr will know that there is recovery and reliving letter will not be issued till all due is paid. If employee require (most of employee require) reliving letter and positive feedback while PE check then he will clear dues.

It is not advisable to use agents for recovery because it can create legal issues and same time organisation image is on stake. If you want to revocer money than follow legal procedure. I will suggest if you are having lots of resigned recovery cases then check your policy. Might be your notice period duration is not reasonable. (It is found that if for entry level notice period is high than chances of recovery are more because profile do not justify long notice period.)

For more HR related information: White Eagle: Reporting To Two Bosses

From India, Hyderabad
dear sir I am working with a company where hrd is not implemented till date ad they hired me for this purpose so kindly guide me hw 2 implement hrd in this company kin
From India, New Delhi
You can have a system of getting clearance/ no dues certificate from all the deparments before doing the full and final settlement for every employee leaving the organozation.
This would help you.
Thanks & Regards,
Avika Kapoor

From India, New Delhi
In such cases the company should not issue any experience & relieving letter. You can also share the way ex - employee has behaved in case of verification from new employer. You can state that separation was not clean however except for long legal battle there isn't much that can be done.
From India, Chennai
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