Saswatabanerjee
Partner - Risk Management
Eswararao Ivaturi
Ex-manager (pers&adma)
+5 Others

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Greeting of the Day !
Ours is a small manufacturing company with a work force of 50 employees. One of our old employee (above 5 years) wants to resign and then join back again with a new appointment . .His contention is that he needs money.
This employee is the most experienced one in his job that required sustained training. Though we have a doubt about his leaving our company but we have not been able to find out the truth.
We want to support him on the face value of it but still want to keep company's interest in good place.
What should we do so that truth can be brought out as even in regular communication with him he is not sharing his inner thoughts.
What should be our action so that he does not leave the company after receiving his dues .
Kindly guide us in the issue .
Thanks & Regards
Chetna

He needs money - Is it the only reason of him to resign?? -- then if you truly wanted to retain him, announce a incentive programme for all the employees who's tenurity is good and could talk to the management for considering a good hike for employees whom you think would be critical to run few important tasks) (since if you just please him with a hike or a bonus, other employees might be de-motivated) hence its better to consider all the employees than him alone.

Why does he want to join you back?? Doesn't he have anyother opportunity elsewhere with his experience and knowledge? Does he target his Gratuity if so, I dont think it is not that very big. Does your company have anyother benefits than ur competitors (just think of this, you would understand)

No employee would be willing to give you the exact reason for moving out. Please do not expect anyone to give him and you cannot expect so from the employee. Paying the employee does not give you rights to interfere in his decisions if he does not permit you so.

Thanks,

Priya

Thanks for your quick reply. kindly suggest whether :
Is it legal to get him sign a bond for his continuation with the company.
Is is a common practice to use pf and gratuity in the said manner.
The market scenario is not great and there is groupism and regionalism associated with this case. We are already paying best in industry with many benefits like uniform, meals and other employee benefit schemes.
Your valued feedback is greatly appreciated.
Regards

Chetana7426,
What is the qualification of employee, age, year of service with you, Salary, Current designation, role, responsibilities, designation, ?
Please share you give you more inputs to take decision....

He may be offered loan, interest free or min interest rate, from the company at to meet his requirement.
The company is thinking about offering him interest free loan. The employee in question has just finished payment of his earlier loan. This has been our company policy to support our workers as most of them are from rural background and not educated enough.
But sometimes, it seems they have taken this support for granted and show resentment by not working efficiently in case it is denied. (only in a few cases)
The employee in question is a graduate and has been working on a simple design software. His salary is quite handsome in comparison with his responsibility and market .We have been developing and supporting him throughout his 5 years with us...He has been performing well all these years. But recently few of his friends has left the company and joined elsewhere. His performance for the past six months has not been satisfactory(family issues).
Can a bond or legal note can be made while giving him loan?
How to safeguard the interest of the company in resolving the matter?
Regards

An undertaking should be taken from him that loan money will be adjusted against his gratuity /salary in case unable to liquidate prior to leaving company/retiring. Further, he can appraised to improve efficiency post loan sanction/solving his financial problem.
Subject - Re: Employee wants to resign and then join back to encash his PF and Gratuity dues
Financial worries may cause problems in performance. Provide him financial support (Loan ) & start deducting monthly installment against the financial help. This will realise him that you have helped him. Also issue him expectation letter, wherein you can mention about his best performance required for comapny.
I hope this will enhance his performance
SDP

It is usually observed that employees in financial problem approach with a loan request. In this case request for PF withdrawal indicates the employee is either planning to join your direct competitor or start out on his own and towards this is trying to circumvent the possibility of the organisation delaying his PF transfer / withdrawal as the case may be. The best option would be to counsel the employee to understand his real issue and offer him an interest free loan with agreed deduction from salary and other dues accrued.
Dear friends, as rightlsaid,
employer has to extend the
financial help to such a needy employee, but if the intension of the employee is to leave thecompany one
cannot stop him. Ofcourse
the inner view of the employee cn be known on indirect enquiry from the
co-workers close to him.
Allowing resigntion and re-
joining of an employee is
not a healthy practice for
the organisation. Sanction
\'Special loan\'and the recovery methods can be adopted.
This is apractical view which has been experienced.
Hope this may be helpful to
some extent,
Best wishes.
Eswararao Ivaturi.
known. It can only be possible
to some extent if


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