Strategies for Employee Recovery, Full & Final Settlement, and HRD Implementation

Dear All,

After the full and final settlement of an ex-employee, many times there is a recovery from him/her. Sometimes when the amount is negligible, we can let go of it. But sometimes the amount cannot be ignored. In such cases, employees go absconding, don't pick up your calls, or reply to your emails. We sit waiting for the mails/cheques/response, and they never come. How to deal with such cases? Are there any agencies that handle business recoveries? Kindly guide.

Dear,

If your outstanding is justified, then you can file a case against the individual for recovery. These types of procedures are very lengthy and take a lot of time. You have to spend a lot of money to hire a good advocate, and still, the chance of recovery is less.

Regards,
JS Malik

Dear Amruta,

If an employee owes something to the company, then how come it is not discovered in the full and final settlement? If this is what is happening, then you need to improve your way of working. Improve your records management. Periodically obtain signatures from the employees on the loan cards. Obtain agreements from the employees for the usage of company-provided items, and so on.

Constitute an internal audit team. This team should inspect the records of every department. Instruct every department to maintain their inventory. The Head of Department (HOD) of each department is responsible for maintaining this inventory. He/she should conduct handovers of this inventory whenever going on extended leave.

If you do all this, it may increase the workload of the HODs, but it will bring about organization.

Best regards,
Dinesh V Divekar

Thank you, Mr. Malik and Mr. Divekar.

Referring to Mr. Divekar's question at the start - every time an employee doesn't need to have any loan issues with the company. As per the policy, we have a three-month notice period. Therefore, many times, they need to pay us this notice if they resign with immediate effect. Regarding loans and other financial issues, we have an efficient system in place. However, some employees abscond, and we keep following up/waiting for months.

Dear Amruta AB,

I am confused about how there can be a notice period recovery for absconding employees. In most organizations, when an employee is absconding, HR will follow the due procedure, terminate the employee, and issue a voluntary absconding letter. In this case, there will be no notice period recovery (as the organization is terminating the employee because the employee lost lien over the job), and HR will not issue a relieving letter.

Now, if an employee resigns from the job but does not serve the notice period, then at the time of Full & Final settlement, HR will realize that there is recovery, and a relieving letter will not be issued until all dues are paid. If an employee requires (which is the case for most employees) a relieving letter and positive feedback during a PE check, then they will clear their dues.

It is not advisable to use agents for recovery because it can create legal issues, and at the same time, the organization's image is at stake. If you want to recover money, then follow the legal procedure. I would suggest that if you have many resigned recovery cases, then check your policy. It might be that your notice period duration is not reasonable. (It is found that if the notice period is high for entry-level positions, the chances of recovery are higher because the profile does not justify a long notice period.)

For more HR-related information, visit: [White Eagle: Reporting To Two Bosses](http://kuldeeprathore.blogspot.com/2009/08/i-work-for-reputed-company-as-hr.html)

Dear Sir,

I am working with a company where HRD has not been implemented to date, and they hired me for this purpose. Kindly guide me on how to implement HRD in this company.

Thank you.

You can have a system for obtaining clearance or no-dues certificates from all departments before completing the full and final settlement for every employee who is leaving the organization. This process would be beneficial for you.

Thanks & Regards,

Avika Kapoor

In such cases, the company should not issue any experience or relieving letter. You can also share the way the ex-employee has behaved in the case of verification from the new employer. You can state that the separation was not clean; however, except for a long legal battle, there isn't much that can be done.