Consultant In Education, Real Estate, Home
Asso.prof.(commerce & Management) Pg
Soft Skill Trainer / Hr Consultant - India
Manager - Hr Excellence
Career Management, Talent & Capability
Asst. Hr. Manager
Asst. Er. (it Securtities) In Hr
It's a kiddish notion. Your appointment letter on company letter head is as valid a document as a stamp paper.
In stead of looking at legal options to handle such cases, in my opinion, you should look at your recruiting practices, in order to have good hires. In addition to that, make a provision for notice period, so that whosoever is leaving the organization, transfers his/her responsibilities and exit becomes smooth.
16th September 2013 From India, Delhi
16th September 2013 From India, Ajmer
Usually as a standard practice, Appointment Letter is prepared on the company's letterhead with all the terms and conditions stated. The salary breakup and also the notice period is mentioned in the appointment letter. Penalties in regards to non adherence to the notice period is also mentioned in the appointment letter.
One an employee accepts the Appointment Letter after joining an organization, he / she accepts with all the terms and conditions stated by the Company. Incase the employee leaves the Company and does not adhere to the clauses of notice period or final settlement as mentioned in the Appointment Letter, then the Company has rights to take a legal action against that employee.
Since, Appointment Letter is signed by the authorized signatory appointed by the Company, therefore, Appointment Letter can be made on Company's letterhead also. Preparation of appointment letter on stamp paper is not necessary.
16th September 2013 From India, Mumbai
17th September 2013 From India, Chennai
You may be following HR practices but are you following right practices in right way! Some of the members have rightly pointed out the drawbacks of having appointment letter on stamp papers. You need to understand that even if you want to take some legal action, a company letterhead is as valid a document as stamp paper.
In addition to this, you should also agree with the fact that a person may not be able to recover/collect all dues in the notice period unless and until your notice period is as long as three months or so, and in this period you do not tell your employee to initiate new sales and be focused only on collection.
One way to curb this menace at your organization to have innovative salary methods directed at retention. The way that comes to my mind is :
1. Hire candidates at 10 - 15 % higher than average market salary. You will get quality candidates who are serious about their job and it will be difficult for them to find jobs in companies from same industry becoz their package will be higher than average.
2. Retain the extra 10-15% in fixed deposits of bank. Give your employee normal bank interest on this amount.
3. Have a time period , let us say one year, before you make this payout. This will stop employees from going away before completing this period.
4. If they still leave, the money shall be left with you.
17th September 2013 From India, Delhi
Your Letter Head is Enough. But if u have any doubts on the employee, u can take separate written document from that person. There is no need on stamp paper. It is enough on white paper also. That document is legally strong and if possible try to take two witnesses also.
Thanks & Regards,
J. Srinivas M.s.c LLM
18th September 2013 From India, Hyderabad
So do some introspection first.
18th September 2013 From India
Rather than having offer letter on Stampaper, You can introduce a Bond during the Joining. The terms of the bond should be clearly mentioned in the offer letter. The Bond will be a Legal document and If any one breaches it shall face action ( Except in some Cases-Medical , etc)
18th September 2013 From United States, Buffalo
The company letter head is enough for the offer and you may have look on below suggestions.
1. Making a bond (1/2 Years) with employees at the time of joining.
2. Keeping some caution money in monthly salary with your side and that should be aware of employees. That can be provided at the time of final-settlement if he/she is a clean exit. If you are giving travel allowance, Give the allowance for last month along with the current salary and current allowance in next salary.
3. Pls have a look into the employees problem or the reason to leave the company without clearance.
4. Try to resolve the employees problem in market and The relation between the manager and employee.
Asst. Manager - HR
18th September 2013 From India, Bangalore
The issue are not clear in your question. Under what circumstance the marketing people are supposed to clear the dues ? why legal action is to be initiated against the employees who have either resigned or vanished ?
will you please enlighten me in this matter
18th September 2013 From India, Bangalore
As others said letter with your terms & conditions duly signed by the authorised signatory and accepted by endorsing thereat should suffice. But if you choose it should be on a stamp paper it doesn't perse invalidate the contract between you and the candidate. What is more important is your offer, unambiguous, specifying the T & C which are legally valid and the acceptance of the same by the candidate.
20th September 2013 From India, Bangalore
As pointed out by others, your question is not clear enough. What I understand is that the Sales People leave while the accounts they are handling still owe the Company some money. And you want the sales people to leave only AFTER they have collected such monies.
If so, rather than the sales people you need to look more closely to your Credit Terms .. if all the sales people are doing is follow those, then how can you hold sales people responsible for a management policy ?
And, as said by others also, stamp paper will only make good people shy away..
20th September 2013 From United States, New York
20th September 2013 From India, Bangalore
Thank you so much for the great response indeed, I got the directions and took out the middle level conclusion of win win situation, as we have issued appointment letter on Letter Head and the conditions which was important for us, we took them on stamp paper.
21st September 2013 From India, Ajmer
"we have issued appointment letter on Letter Head and the conditions which was important for us, we took them on stamp paper."
:-) Sorry but You have missed the whole point completely. A company letter head duly stamped and signed by the authorized signatory is and will always be considered a valid LEGAL document in any court of law and tribunals. So if you have done what you said you have done, then believe me it hasn't changed the status quo except for the fact that now you feel mentally reassured... A sense of false security has been created...That's all.
But the issue still remains. Why is it happening? and happening so frequently that you are pressurized to look at ways to ensure they can be
forcefully stopped. Why? why not just look at the root cause and remove the cause and have a happier organization.
Are you or the management even aware of the implication of taking legal action against an employee for this purpose? Very soon the news will spread and you will stop getting good or even average guys to join you. The only people who will join you would be misfits who are either desperate or don't have skills to be employed anywhere. Yes this problem will stop but so will organizational growth.
Every sale has three components... Price, delivery and payment terms. If money is stuck in the market, then you definitely need to look at your order acceptance process. I can understand one person or maybe 2 leaving you like this but the way you have reported this issue, i presume that the number is quite large and hence high receivables are being reported... but that's a sales process issue not a terms and conditions issue...
But To each, His own... Cheers!!
25th September 2013 From India, Delhi
Am curious to hear from the Questioner as to if indeed this is the case. If so, and even then they are getting " employees" accepting their terms on Stamp Paper well then those " employees" must be either desperate or foolish. Both of which are not happy signs...
Just my thoughts...
1st October 2013 From United States, New York
Appointment letters with all the conditions of appointment, with an enclosure of acceptance format is usually designed and issued on the company's letter head duly signed by the concerned appointing authority of the company.
Issue is about action regarding "The vanishing employees, who are supposed to collect the market dues and to make them responsible or how to initiate legal action against them"
This happens when the sales or marketing employees are entrusted with cash collection of sales proceeds. When a sales or marketing persons are entrusted with cash collection,the usual practice is to collect an undertaking of acceptance to deposit adequate Security or Caution Deposit, before duty report. In few cases an undertaking on non-judicial stamp paper along with Two sureties and also with Two witnesses is being taken before accepting his/her duty report. When an undertaking is being taken on company's letter ,along with two witness, it is more than enough. How ever few companies who are over cautious, usually collect such an undertaking on non-judicial stamp paper.
Please consult the Soft Drink/packed food/ Commercial gas distributors for appropriate method they follow, because such practice of cash collection at the time of delivery is in practice.
I feel your concern is addressed
3rd October 2013 From India, Bangalore