It has the potential to create a bad name for the company.
what do the doctors say about her illness,state of health and prognosis?
Based upon doctors report you can take action.
As far as her work goes,ask some suitable person to check and take over the files,property etc and make a official list which can be got signed by the lady when she comes out of hospital.
In some cases you can waive notice period.
The moment the lady gets discharged from hospital the company can think of accepting her resignation.
4th August 2015 From India, Pune
Before providing comments, it is pertinent to know certain information.
What is the designation of the woman employee? What kind of work she is doing? How many persons report to her? What about her manager? Did he do workload analysis of her work? Why she said that she is will not take work pressure any more? Do you have employee separation policy? Does she have job at hand or she has resigned out of frustration?
When you hospitalised the woman employee, what doctors said? What is the diagnosis?
As of now let her take rest. When medical authorities provide fitness certificate to attend duties then only tell her to attend the duties. In the meanwhile, start looking for her replacement.
By the way, parents have blamed your organisation for deterioration of her health. Their blame carries no meaning. Just ignore it. Be in constant touch with the hospital and keep yourself updated about her improvement.
Rules are equal to all. Therefore, she is ought to serve the notice period. She must hand over charge of her duties properly. If she fails to do that then put on hold her Full and Final Settlement (FFS). Issue notice to her accordingly.
4th August 2015 From India, Bangalore
4th August 2015 From India, Kolkata
5th August 2015 From Pakistan, Karachi