Dear Friends,

Inspite of noticing that there are too many discussions on absconding cases, I'm seeking help on the same subject.

I've joined a manufacturing unit and is informed by the MD that there are too many absconding employees who have left the organisation without serving the notice period. This has been hampering the projects undertaken by the organisation. During the discussion he acknowledges that he happens to lose his temper at times and has been taking the employees on task as he finds few of them lethargic in discharging their duties. A similar situation is seen with top management guys too wherein few after serving the organisation for over 3yrs have left overnight.

I 'm not exploring the options to taking action against the absconding employees but instead would like to take control of the situation and ensure that henceforth anyone who is leaving atleast serves the notice period so that the organisation will have time to identify a suitable candidate.

MD wants an immediate action on this and has suggested to retain the original certificates of the employees or retain 20% of the salary and deposit it into fixed accounts such that we can ensure that the cases of absconding drops down.

Please suggest if this can be exercised or any other alternative solutions.

Thanks & Regards,

Pramod

From India, Hyderabad
I am based in the UK and am not a HR expert. However, after reading previous posts on this topic, I am rather disturbed at your idea of retaining original certificates. I think it is highly unethical and could even be illegal.
Put yourself in the shoes of those that have left or going to join. How would you feel if 20% of your wage was withheld as surety? What do you mean by 20% of salary (One month salary or one year)?
I think the MD has to undergo a therapy for anger management, if that's the cause of people leaving. If senior management staff have left overnight, has the company done any exit interview by mail to find out why they have left?

From United Kingdom
While there is nothing in law to stop you from keeping original certificate of new employees, it will be a problem if you do not return it. Or I. Case one certificate is damaged or lost. Further, the candidate can make a police complaint and your managing director (and you your self) would be in jail for not retiring the certificates.
For existing employees, asking for these certificates would be change of terms of employment and it can not be done without their individual approval. This would be covered by industrial disputes act. Also there may be clauses in the standing orders that do not allow you to do this.
The other idea - holding back 20% of salary, is illegal. It is a violation of payment of wages act. You will be liable to penalty for the same.
At best, you can have retaintion bonuses for those who do not leave in a hurry. However considering the reason for absconding cases, I ahve my doubt whether that will work.

From India, Mumbai
Hello Pramod,

Simhan & Saswata Banerjee have already given the views about retaining Certificates.

However, I don't want to get into THAT angle at all.

MAYBE a MUCH BETTER & EASIER solution to the problem would be for your MD to change? It's in HIS interest more than that of any employee, including you.

Let's look @ it this way--HALF the problem is already solved, since your MD realizes & accepts that his temper isn't cool all the while. Most CEOs/MDs in such situations just fail to see that THEY are in fact the problem, rather then the employees who abscond. So, to that extent, you have a half-solved problem already.

I would suggest that he take some professional help to enable him to add soft-skills to preempt such situations in the future. This would be much easier to handle for him rather than getting into all the consequences of situations [most of them that even he wouldn't be able to visualize initially] that COULD arise from taking the Original Certificates.

Also, suggest DON'T under-estimate what Saswata Banerjee mentioned: ".....candidate can make a police complaint and your managing director (and you your self) would be in jail.....". I have seen this happen in the very city where you work recently--luckily for the Employer, the employee was in the wrong on a few other counts.

You also need to ensure that this is the ONLY reason why employee abscond--or are there any others that still haven't come-out into the open?

The reason I think this SHOULD be checked-out is: it's understandable top management guys leaving as they would be, most likely, in direct contact with the MD on a daily basis. But, how come the lower-rung employees also are absconding? There COULD be >1 reason contributing to this situation.

Rgds,

TS

From India, Hyderabad
Please make your MD understand the ground realities. He cannot run his organisation like his home ! There are various rules and guidelines, and laws to support employees. Such rules were evolved the world over because of misuse of authority of bosses like yours !
Instead of threatening, holding back money, original certificates etc, you can consider giving promotions and increments cumulatively for the years of service rendered.
Similarly, one of the reasons for the employees leaving the organisation, could be the attitude of your boss. It is better to bring the errant employees to the discussion table, motivate them, train them and make them assets for your organisation.
Best wishes

From India
Dear Pramod,
You have received some excellent suggestions and pointers from HR experts. As you can appreciate from the following link Leaving the dream: Infosys battles worker exodus | Reuters even large firms are having problems of attrition.
Could you also kindly give more information about the size and the nature of the business. From the information given in your last message, it is not clear whether the MD is qualified or not. Being young, it should be possible to change and keep his cool.

From United Kingdom
Anonymous
1

Dear Pramod,
I didn't have that much of experience that the above friends have. I thought you are forgetting that, you also an employee of that company. Employee leaving the company with out prior intimation means, they are facing the problem with the management. weather it may be a salary delay, work pressure or it may be other. So, my simple suggestion is think your self from the employee end, but not from the management side. then you will easily sort out this issue.
Moreover, try to interact with the employees and allow them to share their problems with you. If it is reasonable then put it in front of your MD.
Apart from this if you proceed with certificate holding or Salary holding, as the above friends said, you and your MD may have chance to face the legal problems.
Please excuse me, if my suggestion is worthless and if I said anything wrong......

From India, Hyderabad
Dear Pramod,
I didn't have that much of experience that the above friends have. I thought you are forgetting that, you also an employee of that company. Employee leaving the company with out prior intimation means, they are facing the problem with the management. whether it may be a salary delay, work pressure or it may be other. So, my simple suggestion is think your self from the employee end, but not from the management side. then you will easily sort out this issue.
Moreover, try to interact with the employees and allow them to share their problems with you. If it is reasonable then put it in front of your MD.
Apart from this if you proceed with certificate holding or Salary holding, as the above friends said, you and your MD may have chance to face the legal problems.
Please excuse me, if my suggestion is worthless and if I said anything wrong................

From India, Hyderabad
Employee on joining may be required to write a bond with surety of two serving employees for serving for a stipulated period,say, 5 years.Before leaving the employee has to deposit the amount,or,face forfeiture of all his dues with the company alongwith recovery of the amount from the employees standing as surety.
From India, Bokaro
Hi Pramod,
see if your employees are leaving organization with out notice it means they are not satisfy else they afraid that if they inform management then they may torture them on handing over issue or any other problem.
MY suggestion is to start doing smooth exit of employees don't torture them. Conduct Exit interview and analyze why employees are leaving and try to solve that issue.
On your part of retaining original certificate its totally illegal you cant do that if you have done then you might get into dilemma at any time. you can retain salary but as a part of retention bonus.
issue appointment letter to all employees make them aware about notice period . If some one leaves immediate after the salary paid with out serving notice you can deduct their salary as per notice period mentioned in appointment letter. if still F & F amount is recoverable then send legal notice of recovery. Practice this thing hope you find better way ahead.
Thanks,
Suman Singh
9736428872

From India, Chandigarh

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