Dealing with Absconding Employees: Asset Recovery and Legal Actions

Dear All,

One of our clients, a marketing company, is facing a problem regarding employees who abscond along with the assets of the company. The cost of the assets ranges from Rs. 5000 to Rs. 15000. The company deducts PF from the salary of its employees.

Other facts:

1) Some of the employees are not traceable.
2) Employees who are traceable are not ready to pay for the outstanding assets in their names, and their PF balance is not enough for full and final settlement (since this will lead to a loss for the company).

So, I want to know what action the company can take, considering the overall benefit to the company regarding the cost as well as legal aspects.

Anticipating some good responses.

Regards,
CA. Lavkush Somani

Dear Lavkush,

This is a common issue with the marketing guys. They tend to leave the company without handing over the necessary items to the company.

In your case, send an absconding letter to the employees at both their corresponding and permanent addresses, which they provided at the time of joining, through Registered AD.

After 15 days, if you do not receive any response, send a follow-up letter with some modifications. For instance, mention that the first letter was sent on [date], but there was no response. By giving them another chance, send this subsequent letter.

If there is still no response, consult with a legal expert and consider filing a FIR against them. Additionally, consider publishing it in newspapers. However, taking such actions could potentially ruin their careers permanently.

Before proceeding with this step, discuss the matter with your employer and seek legal advice. To file a FIR, you must have all the necessary evidence regarding the items that were taken and their importance.

Do not adjust their PF with the Full & Final Settlement.

AMATYA

Hi!

I agree with Amatya. As a precaution for the future, please consider keeping some kind of deposit for new joiners, if possible, to avoid such situations.

Thanks & regards,
Janavi

Each and every letter should be sent through registered post with acknowledgement due. Refer to the previous letter in the subsequent letter as stated by Amatya. Before filing an FIR, you should try to talk to some of the nearest friends of that absconding fellow.

Saikat

Dear Lavkush,

The suggestion provided by Amatya is being used by us in our company for dealing with absconding employees. To prevent such scenarios in the future, we can conduct proper reference checks and address verifications (both present and permanent addresses) during the recruitment of such individuals. Depending on the requirements, an outside agency can be involved for this purpose.

Swati