Employee Comes After One Year For Settlement? - CiteHR
Saswatabanerjee
Partner - Risk Management
Hr@bmcgroup.in
Hr Executive
Globaloverseas144
Soical Compliance Auditing
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Ankita1001
Sr. Hr Executive @ Polymerupdate
Sreeram70
Manager
Meenu08
Hr Professional

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I require your kind advice on this matter. We had an employee working for about 4 years, who quit us more than one year ago in 2012 because he got a better job opportunity. He had served only 25 days notice against a notice of 2 month, and then after receiving that particular month's salary, stopped coming to the organization, as he wanted to join some other organization early and was not willing to serve complete notice period. He was at a senior position. He didn't even come back to us for final settlement.

Now after about more than one year he calls up HR and is asking for PF withdrawal. Though we have no problem in doing that obviously, we will process his PF. However can we ask him to first settle his dues with the organization as he stopped coming without information and he owes payment of his remaining notice period to the organization which he didn't clear? let him pay the organization the remaining dues esp when he didn't leave on a perop

Please advise.

Hi Meenu,

I can understand such situations are too cheesy to be taken a firm stand at.

However after analyzing the situation, I find it best to have this practice -

1. Firstly decide what is the due on the person, it is important the due are cleared from either side.

2. I didn't understand your statement - "He had served only 25 days notice against a notice of 2 month, and then after receiving that particular month's salary, stopped coming to the organization"

Usually if a person is putting down the paper, the person do not get salary in between and gets it only as F&F.

3. Nonetheless, as you said your notice period clause is 2 months (60 days)

The person served only 25 days i.e. 60-25 = 35 days are still to be served.

Now depending on your company's policy what you can do is either of the two -

... < a > Either you deduct the salary of 35 days in the F&F (or ask him to pay you)

... < b > Deduct the leaves to his credit from the 35 days and deduct salary only for the balance notice. For eg say the person still had 10 leaves to his credit, deduct those from notice. so ideally he's to serve you 35 - 10 = 25 more days so deduct salary for those days.

4. I am sure since the F&F was not given, he might not have collected his relieving and experience letter as well.

5. I am not sure if PF can be claimed or not as there is some time period in which one has to claim it which i am unsure of but you seeked advice on how you should process the salary payment or due clearance I have tried to advice the best I can.

Hope it helped.

Hi Ankita,
The suggestions given by you have always been very knowledgeable and helpful :-).
Just to add on to the information, the employee can claim for his PF within a period of 3 years, post which, it is used up for development purpose (which means we will not be able to claim it from the Government thereafter).

Please ask for clear the balance dues from him and then you can issue a releaving letter and clear his EPF form etc..
Sir, PF is an amount into the account of Employee, no employer can stop the employee for the with drawl, yes in case where the employee is due to pay or clear the amounts to the employer, the employer may take a cheque may be of post dated and clear the account.
Thank you so much for your kind advise, Ankita.
Yes I understand your point. I have another question in a different context and situation. Let's say if an employee works for a month in the organization and absconds from the organization without any charge/handover and then comes after six months and claims for his settlement.
Legally till how long as HR we are supposed to keep records/ f and f details of an absconding employee. what if an employee comes after one year.
Pls suggest.

Thank you so much for your kind advise.
Yes I understand your point. I have another question in a different context and situation. Let's say if an employee works for a month in the organization and absconds from the organization without any charge/handover and then comes after six months and claims for his settlement.
Legally till how long as HR we are supposed to keep records/ f and f details of an absconding employee. what if an employee comes after one year.
Pls suggest.

Thank you so much for your kind advise.
Yes I understand your point. I have another question in a different context and situation. Let's say if an employee works for a month in the organization and absconds from the organization without any charge/handover and then comes after six months and claims for his settlement.
Legally till how long as HR we are supposed to keep records/ f and f details of an absconding employee. what if an employee comes after one year.
Pls suggest.

Hi Meenu,

Absconding is an issue and the way to handle it depends on the kind of tenure the person has served with you.

For example, there are few people who come to your place for a few days or say a week and then vanish, what can be done? You surely don't want to hire them back. That is it.

But say a person has worked with you for considerably longer duration (12+ months or so) though we would mark him/her absconded, we may want to atleast chat when he/she comes back for his/her F&F.

======================================

About keeping employee records -

If you have extended an appointment letter to anyone, it is your duty to keep in file the documents of the person - copy of residence, photo id copy, and certifications copy (if needed). These photocopies should be attached with the appointment letter that bears the acceptance signature by the person.

Every data of the person's performance like - appraisal results year-on-year, any achievements he got, leave forms, etc should be filed in duplicate in the records.

Ideally you should be maintaining the records of people who resigned or left for certain duration (I think for 5 years)

I hope this clears your doubts on how long should the data be preserved.

===========================================

If a person absconds in one month's time,

Keep the records as I had already mentioned.

If the person's salary for the previously worked month was already disbursed and if there are no dues left, I don't think there's anything left. Ideally a person would not want an experience letter for one month. But if they need a relieving letter, what to do? You can ask him to give a resignation letter. Ensure that it is not backdated.

You can hand over the relieving letter dated the current date and in the letter you can mention that "The person is relieved of all his/her roles with effective (back date)"

If the person had not taken his salary for the previous period of his work rendered, what to do?

He may claim for F&F.

As a goodwill I don't think it is very correct to say a no on the face of it.

You can instead call the person to meet you for this.

Ask for the absconding reasons and then justify if that was right.

You can explain the company's policy and say there's nothing to be done to give you the claim.

All these again depends on the termination policy of your firm.

Honestly there's no one best practice we can adopt for all as the policies and regulations changes from firm to firm and ideally from case to case basis.

I always say that as HR we deal with human (who are all different) and not robots. So don't just nail the rules. Even if you do, atleast be open to listen to them and then explain to them why you can't do it.

Hope this helped.

PF department pays interest on the amount in your account for 3 years after the last deposit. Thereafter, the interest is stopped.
The money is still yours and it can and will be available for withdrawal at any time that you want.


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