Hi Jayanthi,
What your management has requested you to do is absolutely right. Irrespective of his previous employer relationship, he is still supposed to serve the notice period or do what is necessary (as per your appointment letter details).
Consider him like any other employee who has left your organization without any information.
I assume that the new company he has joined, the HR there would ignore. However, talk to them, send an email, and ask them to respond to it. I don't think you will be spoiling someone's career here. What about the vice-versa? The company having to suffer with recruitments and additional training for the next few months for a new hire?
Balaji: It may be too early to assume that the company policy is bad, and so someone quits the place without informing. I don't disagree with that either. But let's not generalize. Maybe he could not put up with a new culture, or the previous company could really make him come back because of the "relationship" they have.
This happened in one of our hires, where he hired a person (a very nice, honest individual). A few weeks after joining our company, his previous employer's MD, MD's wife, and children together went to this person's house - sat for 4 hours, convinced the candidate's wife and parents, and begged through to come back. I did not initially believe that story, and spoke to the MD himself directly and asked if there was any truth in this... the MD "apologized" to me and told me that he cannot afford to lose his best employee and said he will refer other people through his friends... but not this person.
I understood the candidate's dilemma at that point. He felt bad that he could not continue with us, and he felt bad that his MD went to his house directly and asked him not to move.
Very senior role... Factory Manager!
So you see - can't blame that the company is bad... situations may arise that people will just have no choice. Well, we did not ask him to serve notice as it was just 2 weeks since he joined us. Till today, he is in touch with me for referring candidates for a few positions.
And this is for Taz.India.
I think you are planning to look out for an HR job... for that you need to at least "act" like an HR if you really can't be one! :-)