Employee Resigned and Skipped Notice Period: Can We Legally Claim Their Last Salary?

Hi Seniors,

If an employee submits their resignation on the 20th in writing but does not come to the office and informs their line manager telephonically after 5 days that they will not be joining, and they do not require a relieving letter from the company as they are transitioning to a completely different field. The employee was with the company for only 2.5 months, yet their salary account was credited for that month. Can the company claim that amount from the employee and take legal action if they do not compensate the company?

Regards,
Durga

Dear Durga,

Do not take tension. He has just served for 2.5 months. What compensation do you want from him?

If your appointment letter has this clause, then you can file a civil suit against him and wait for 10-12 years to get the judgment.

Regards,
J. S. Malik

Hi Mr. Malik,

Actually, he did not serve the notice period. Moreover, he did not work the last month completely but still received the total salary for the month. He neither submitted his corporate SIM card nor used it for two months. Now, he has vanished. We have been sending letters to his address but have received no reply. Finally, we sent a letter mentioning that if he does not pay the money with interest to the organization, necessary legal action would be taken against him. Can we actually do that?

Hi seniors,

One employee of our organization ran away with a company loan. Even though we have been given fake addresses on resumes. What should be done now?

With regards,
Meenakshi Khurana

Dear Durga/Meenakshi,

You can take legal action, but the procedure in India is very lengthy. This type of case will be filed in a civil court, and their procedure is so lengthy that you cannot wait. If you know where he is working, write a letter to his present employer by mentioning all this story.

Thanks,

J. Smalik

Hi Durga,

I agree with Malik's suggestion. Write to his current company about his misconduct. Send someone over to his house to talk to him directly about paying back the money and returning the SIM.

And Meenakshi,

You can approach the local police station and file a cheating case. That's much faster than approaching the court. Try to talk to his friends or colleagues from the company. They would at least have a fair idea as to where he lives and what he's up to.

Do let us know how you handled these issues and what the outcome was. It would help us too if we face such situations in the future.

Dear Durga,

Be calm and handle the situation in a way that ensures you take care of the company's reputation in the market.

Suggestions:
1. Don't process the payroll for the month in which the employee submits a written resignation (regardless of whether we accept the resignation or not). You can include the amount in their Full and Final Settlement.
2. If the employee quits without serving the notice period, we will be on the safer side since we are holding the amount anyway.
3. I am concerned about how the salary gets credited for non-working days. It should not be credited in advance. Consider revising your payroll policy in terms of duration and delivery.

Wishing for a smooth settlement of the issue.

Regards,
Dan

Dan is absolutely right. You need to change your payroll policy. You should not take any action against him if you do not have sufficient clauses in your agreement or in your appointment letter.

Sending him so many letters and reminders for paying back the salary drawn along with the interest is not good. If this thing comes out and if he sues you for any harassment issue, it will be a great hype in the media, and your company will lose reputation in the market. I think your reputation in the market will cost far more than the salary and mobile bills he has enjoyed over time.

Regards,

If salary is not credited for this month even after good performance and working for the whole month without any leaves, then what is the necessary action to be taken with that company. Please let me know ASAP.

Dear All,

My friend is working in an organization where she has submitted her mark sheet and signed a bond for one year. The condition in the bond states that if she leaves the job before one year, she has to pay two months' salary or work for two months without pay. If she leaves the job before one year due to health reasons, should she give them two months' salary, or can she leave by providing a medical certificate?

Can you advise me on whether this is legal or not?

Thanks & regards,
Shekhar

Hi Shekhar,

Legally, an employee has to adhere to the company policy. It would depend entirely on the nature of the issue the employee is dealing with. Management can always make a decision if the reason is serious, but if it is merely a ploy to leave the company, it could pose a problem. The organization can take legal action or blacklist your name, which could create issues during reference checks.

JC

Hi Durga/Menakshi,

These days, whenever companies are inducting fresh recruits into their workforce, they verify and cross-check the antecedents of the employees through agencies for referral checks. You may communicate to him/her that if the outstanding amount is deposited back, you will be forced to give negative censure to the verifying agency, which may affect their future employability. This approach has worked for us; you may try it at your end and observe the difference.

Regards,
Kapill

Hi Durga,

This is a common problem that we all face in the market. Now, the question is, what should we do? Shall we ignore or neglect this type of person without doing anything, or should we take any initiatives? In this case, I quite disagree with my other CHR friends. We must take some legal actions against those persons who think that the company won't do anything. Whether a notice is given or not, we should make it clear that if the company rules are not followed, there could be problems. The reason for all this is to ensure that tomorrow no one in our company does the same. Right?

Now, what legal steps can your company take?

Firstly, your company can file a civil suit to recover any excess money paid in the form of salary. The amount may be less, but the intention of your company would be to set an example that such actions should not be taken. Yes, it will take a long time, but considering the consequences, we can't just sit idle. As a friend once said, cases don't always take 10-12 years in all courts.

Another action your company can take is to file criminal complaints related to that SIM card and all other matters against that person. This may not stand legally, or you might not prove your legality in the end, but the intention of your company would be clear – to teach a lesson and set an example. This will make that person have to be present in court on every date, taking leave from work. Even a single absence can lead to a warrant. So, leaving all work aside, they will have to come. Additionally, someone from your side should also be present in court. It may not be easy for any individual in any organization to stand up like that.

I understand that Indian law procedures take time, but they also yield results. Better late than never.

Therefore, I would suggest your company take legal actions against this individual, without worrying about the expenses and time consumption. This will not affect your business, as the top management does not need to spare time to handle this case, while the other person has to spare time, money, and much more.

I hope this helps.