Labour Law & Hr Consultant
Labour Law Advocate
+1 Other

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Dear Seniors,
one of our employee has gone on unauthorized leave cited the family problem after the few days he has verbally said he will join from next week but after the week he called me saying that he don't want to do job in our company however he is also asking for pay his due. pls guide me in this situation legally can i hold his F&F and PF, Bonus, etc.
Thanks & Regard

Dear Raman,
Your employee seems to be of a wavering type. So don't take serious note of his verbal communications.Ask him to report for duty forthwith. If he submits his resignation in writing and if you are willing, accept the resignation subject to his fulfilment of the notice period obligations,if any stipulated already. Otherwise, deduct the sums from his F&F other than gratuity.

Dear umakanthan sir,
he is ready to submit his resignation with out serving notice period but i don't want to accept his resignation nor want to pay his F&F inclusive bonus,
pls clarify is it legally valid to hold his F&F and bonus,

Dear Raman,

The doctrine of displeasure or discretion has no place in settling the statutory dues to an outgoing employee unless the exit is dismissal on the ground of some serious misconduct. Your annoyance might have been caused by his unauthorised absence followed by his proposed resignation without serving the notice period. What would be the terminal benefits available to a resigning employee by way of F&F? - gratuity, encashment of eligible leave,if any at his credit,unpaid bonus for the previous accounting year,caution deposit,if any made by him on his appointment, endorsement of the employer for foreclosing his P.F account and what else? Gratuity can not be forfeited or withheld for resignation without acceptance. Even in the absence of the employer's endorsement, a subscriber can close his PF A/C. Only bonus and leave salary can be adjusted against his dues to the company but can not be denied outrightly.So, better indicate to him firmly that his resignation would be accepted subject to the fulfilment of the exit clauses only.

First do not entertain any verbal communication.
Since the employee is on authorised leave, you can initiate a domestic enquiry and take actions accordingly (it will be time consuming as well as legally expensive).
Now if the employee tenders resignation, you can accept it on the ground that he must serve the notice period or pay the equivalent amount in lieu thereof. But you cannot reject his resignation straight way. Moreover, statutory dues cannot be hold until the said employee has been terminated for some serious misconduct (again to prove misconduct, you have to hold enquiry).

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