Employee Left Without Notice: How Should We Handle His Payment Demands?

Dear Experts,

One of our employees worked with our company for 7 months without serving the notice period; he left the organization. Later, we sent the final settlement sheet deducting the notice pay. Now he is saying that we should not hold his payment. Additionally, he is asking for the LTA, Bonus, and incentives, which we give only if an employee completes one year with our company. This individual has now sent an email stating that he will give us 10 days to pay his dues. How can we deal with this issue?

KINDLY HELP ME OUT.

Thank you.

Dear,

Please go through the terms and conditions of employment as given in the appointment letter and then take necessary action accordingly.

Regards,
R.N. Khola
(Labour Law & Legal Consultants)
09810405361

Hello and good evening, everyone. Can anyone please help me with the comparison between all the pay commissions till date? It's urgent.

Dear Experts,

One of our employers worked with our company for 7 months without serving the notice period; he left the organization. Later, we sent the final settlement sheet deducting the notice pay. Now he is saying that we should not hold his payment. Additionally, he is asking for the LTA, Bonus, and incentives, which we give only if an employee completes one year with our company. This individual is now stating in an email that we have 10 days to pay his dues. How can we deal with this issue? KINDLY HELP ME OUT.

When you believe that you are wrong, just pay and clear it. As per the rules, you cannot withhold anybody's salary and statutory bonus because if the employee approaches the labor court, your management will face problems. Just check your company's rules and regulations or standing orders on this basis. Consider the appointment letter you provided to the employee. If the employee has made a mistake, then document it with a notice, conduct an inquiry, and proceed accordingly.

Ramnath

Hi All,

Mr. Ramnath has provided the most appropriate solution for your query, Rithik, which includes all the parts. This means that if you have filed everything, then there is no need to worry. However, if there is anything that has been left out, you need to verify the details before you proceed with any steps.

Ashwani R

Hi,

Whenever an employee leaves, before finalizing the full and final settlement, the employer should obtain a resignation letter from the employee. This practice helps to resolve issues related to labor disputes. In terms of recovering notice pay, you should follow the conditions outlined in the appointment letter; however, notice pay recovery should not exceed one month. In the case of bonuses, an employee who has worked for 30 days or more and receives a Basic+DA salary up to Rs. 10,000/- per month will be eligible for a bonus. As for LTA and incentives, please refer to the terms specified in the appointment letter.

Regards,
Sunil

Dear Questioner,

Please pay bonus, incentive, and LTA on a monthly basis and settle their full and final dues. As per the rules, the employer does not have the right to hold or not pay any amount except until disciplinary action is issued in writing.

Thanks,
Nisy

Hrithik,

In my opinion, the organization has jumped to a conclusion too early. It appears that he has formally resigned but left earlier than the notice period, based on which you have committed to the full and final settlement.

I think the incentive should be performance-based, so you could decide based on his contribution and the terms of the agreement from the appointment letter. LTA is payable once every two years on claims made, so you may decide based on any such proofs submitted. Also, you might want to pay him a prorated monthly balance after tax deductions to maintain a good image for the organization.

Under the circumstances cited herein, there is absolutely nothing the ex-employee can do. Please don't buckle under such threats; on the contrary, tell him that a suitable reply will be given through your lawyer in court.

Regards.