An employee is terminated for non-performance and misconduct on 01st April and employee needs to complete the exit formalities like handing over the ID card etc... but if the employee says that due to ill-health he has gone to his hometown and he won't be able to come to the office to handover the ID Card, What are the options available to the HR for completing the exit formalities smoothly?
The employee has not been paid a salary for the month of March as he had to complete the exit formalities.
The employee is insisting to release the payment as he has to pay hospital bills.
Will it be a wise decision to pay a certain amount of salary to the employee now and when he completes the exit formalities release the full and final amount?

From India, Mumbai
Dinesh Divekar
Business Mentor, Consultant And Trainer
Management Consultancy

Dinesh Divekar

Dear member,

An employee was terminated from the services on account of underperformance as well as misconduct. However, on the date of termination, he did not attend to his duties. So has he been terminated in absentia or what?

Before taking the decision of termination, did you conduct the domestic enquiry? If yes, then did the employee depose before the enquiry? When the enquiry was in progress, was there any verbal discussion with the HR professional on what are the requirements in case if he were to be terminated?

If the date of termination is 1st April, then when he was communicated that his services have been terminated and how it was communicated? Was there an unreasonable gap between the date of termination and communication on the punishment awarded? In the termination letter, were the conditions of separation clearly specified?

The employee says that he cannot come to the office and deposit the identity card as he is in his hometown. But then before proceeding to his hometown, why he did not hand over the identity card and then proceed to his home town? If the employee is unwell then what proof has he submitted to prove his illness?

You contend to release partial payment and pay the balance on completion of the discharge procedure. However, it could set a wrong precedent. "Humanitarian ground" this phrase look good in the mouth of the politicians but not necessarily those who run the business enterprise. The employees must work within the framework of the discipline. Whoever breaches that framework has to pay a price for it. I recommend you taking a decision impassionately.


Dinesh Divekar

From India, Bangalore
Hello Dinesh,
Thanks for your reply.
The Employee was given previous warnings verbally and in writing. Still the very next day he remained absent without intimation. He was contacted but he did not revert. Hence the decision was taken due to his unprofessional behavior.
After almost 1 week he was contacted again by the HR so that he can come to office and complete the exit formalities, at that time he informs that he is out of town and he cannot come back to submit the ID card
Before proceeding to his hometown, he should have contacted us and handed over the identity card and then proceed to his home town but he did not.
Now he is following up by sending emails that he wants to pay his hospital bills he needs money.
Please advise

From India, Mumbai

Salary cannot be withheld for non-completion of exit formalities (handing over of I-card) -S. K. Mittal 9319956443
From India, Faridabad
Sir, I am serving as an Assistant Registrar HR at, my question is that some of our faculty members resigned during the commencement of the Semester. We have withheld their salaries on non-completion of exit formalities. is it ok?
From Pakistan

In case the employee concerned is covered as per the Payment of Wages Act 1936, then the provisions of Section 10 (2) of the Act have to be followed, which reads as follows:

(2) Where the employment of any person is terminated by or on behalf of the employer, the wages, earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated:

Provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognised holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated.

It appears your industry is not covered in the Payment of Wages Act 1936 and so the provision would not apply. Hence you can insist on the return of the ID Card before the payment is released. However looking at the issues in hand, you can tell him to courier it and submit the tracking number before a part of the salary is released. However, you may insist on the completion of exit formalities before settling his full and final account.

From India, Mumbai
Dear Sir,
Thank you very much for replying on my query.
Yes we have advised him to mail us the ID card and once that is completed we will release the payment.
But he is writing emails that we are being inhuman towards him by holding his salary he has 3 kids and family to take care and that since he is without job he will commit mass suicide with his family.
This is not a practice to hold back any employee's salary. In fact its the part of exit process that every employee has to follow.
Is threatening the company with Suicide attempts correct?
Who is harassing here by writing all such emails?
Kindly advise.

From India, Mumbai
Can we reply to his email with suicidal threats stating as below:
"We hope, you know and understand that committing suicide and even giving suicidal threats is considered illegal as per Indian Law. We might be forced to take a legal action by reporting to police about your suicidal threats to us."
How should we reply to his emails ?

From India, Mumbai

Yes, indeed faced with such a threat we had made a police complaint and persuaded the Police team to visit him late in the night. That did the trick and the next day morning he came with folded hands and apologising. Such a treatment is needed in some cases but may not be appropriate in this but the letter as proposed shall go.
From India, Mumbai

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