Employee Changed Passwords on Last Day: How Should We Handle His Relieving Letter and Settlement?

Hi!

An employee of the IT department at our company, on the last day of his notice period, changed the various passwords of the system. His full and final settlement is still pending, as is the relieving letter. He is refusing to disclose the passwords until his full and final settlement is completed. What steps can we take?

1. Can we mention his misconduct in his relieving letter? If yes, could I have the wording for the same?

2. What about filing a police complaint?

Dear Gurmohan,

The incident illustrates the lack of trust in the management. Your company needs to conduct an Employee Satisfaction Survey. The instance demonstrates what is in the minds of employees.

Now you have two options. One is to succumb to the pressure of the exiting employee. Give him F & F Settlement on one hand and take passwords from another. This is what we see in our films when the Mafia trades.

On the flip side, if you exercise this option, it will send a wrong message to all other employees. They will perceive management as a weak entity and will find newer ways to do some arm-twisting.

The second option is to file a police complaint. But then check with the legal experts first under what law provisions can be booked. Going to the police is always a nasty affair. But then if required, you need to do that. Retrieval of data stuck in the system will obviously take time. Can you afford to wait?

Legal action will take time, but it will send a message to all the employees that your company's management stands for something.

Once the whole thing is settled, the earlier your management takes steps to create an atmosphere of trust the better. Nothing substitutes trust. In this very forum a couple of weeks/months ago, a story was circulating that during 26/11, employees of the Taj protected their rooms and restaurant guests without bothering about their own safety. Why did they do this? It is because of their trust in their management.

It's a great warning to your management, and the earlier your management wakes up, the better for them and the company as a whole.

Ok...

Dinesh V Divekar

Thanks, Dinesh. However, you have jumped to a conclusion a bit too soon. Just to tell you, this is just a one odd case that has cropped up in the entire 20-year history of the company. My main query remains unanswered regarding mentioning the incident in the relieving letter.

Dear Gurmohan,

When I posted my comments, my objective was not to offend you but to make you aware of the simmering discontent within your organization. No trouble comes without forewarning, and this could be a jolt pending a major tremor.

I have given you two options. You need to choose either one. Yes, it is a Catch-22 situation. But then everyone passes through these situations.

Ok...

Dinesh V Divekar

Dear GurMohan,

This is a common story for all organizations. We cannot satisfy everyone. Yes, you can mention the same in the Experience Letter as this is a gross misconduct. I will provide you with the exact statement that can be furnished in his Experience Letter. If he is dissatisfied with the management and policies, this is in no way acceptable behavior from his end.

Complete his F&F and keep his Experience letter on hold. Also, you can lodge a complaint against the employee. Please check with the legal advisor.

Do you have any proof that he has changed the password?

As stated by Ravi, a No Dues Certificate is required for Full & Final Settlement.

I would disagree with Dinesh. Without knowing the details of the organization, he had directly mentioned a lack of trust in management and employee satisfaction survey.

Dear Gurmohan,

The employee is holding the company to ransom. In fact, as an IT personnel, passwords and other details in IT are the most important information which he has to provide to the company before his Full and Final settlement. Additionally, the company has the authority to search his personal computer/laptop if there are doubts that he might have infringed upon company information.

You can proceed to file a police complaint against the employee. Simultaneously, engage a lawyer to issue a legal notice to him and also inform him that his name will be published in the newspaper if he does not adhere to the company's handover process as requested by management.

Furthermore, assure him that the company will provide him with all his dues and payments.

Regarding the relieving letter, if your company truly wishes to damage his career, please mention the misconduct or let him depart peacefully.

Sample

(Source: free writing employment termination letters examples, samples, and templates of employment termination, employee grievance, discipline hearing cover letters)

Name,
Address,
Date,

Reference

Dear Mr./Ms.,

Further to our meeting of (date), we (regretfully) confirm that your employment with us is terminated with effect from (date).

As stated at our meeting:
- The employer must clearly state reasons for termination, including transgressions and relevant policies if applicable.
- The employer must clearly state previous warnings, informal, formal, written, etc., and circumstances, the person's response, and subsequent behavior/performance for each warning.
- Also, mention his resignation letter date and reference.

Clearly state requirements regarding the return of documentation, equipment, car, submission of final expenses claims, and any other leaving administration issues.

Clearly state the position regarding the employee's right of appeal, the appeal process, and timescales if applicable.

Mention that due to his position in the company, the company may call upon him for reasons.

(Optional sign-off: Thank you for your past efforts and all the best for your future endeavors.)

Yours sincerely,

Name and Position

(Highly recommended: attach, at the foot of the letter, refer to a copy of your written disciplinary process, and also attach and refer to copies of written/printed evidence gathered during the employee's case. This enables employees to understand clearly the case against them, the process, and their rights during the disciplinary process, which are central to the principles of employment dispute regulations.)

(Optional section at the foot of the letter, requiring the person to sign to confirm receipt of the letter and any attachment(s) by returning a signed copy of this letter.)

Hope this is helpful.

Regards,
Ukmitra

Dear Gurmohans,

Under such circumstances, when there are apprehensions on both sides due to mutual mistrust and no party is willing to lose, and your organization does not want to take legal action due to time, cost, and other hassles, the best course of action is to draft a suitable Memorandum of Understanding (MOU) and have it executed at both ends in the presence of labor authorities or an agreed-upon arbitrator. Terms and conditions can be clearly defined to be binding, and in the event of any violation by either party, the third party will have the final say, and the terms and conditions of such a settlement shall be enforceable.

S. C Verma

Well, I think Mr. Dinesh is correct. This might be just one instance in the company, but you should take care that this one instance doesn't become a major issue in the future. I would suggest setting this as an example for other employees, sending a message to the rest of the employees that no matter what, the company will not bend down with regard to its code of conduct. Hence, kindly seek legal help and let others know that the organization will not tolerate any such nuisance, no matter what!

Dear Gurmohans,

Before taking any step against this employee, just call him once and discuss the pros and cons of all this with him. Try to make him comfortable so that he understands the situation. Also, talk to his fellow colleagues so that you can gauge his conduct with them. Only then should you proceed with any further steps.

Dear Guru,

I truly believe that there are instances when employees try to force opinions and actions on the management. In this particular case, it is too much for the management to consider things in favor of the employee since he is engaged in activities that are costing the company a lot of time and stress.

The employee should be called for counseling and persuaded to reveal the system passwords. If this does not happen amicably, the judiciary should be involved with the consultation of the Company Legal Team.

Thanks

Dear Gurumohan,

Following are the views.

a) No way can the breach of trust be tolerated; it is sufficient to file criminal proceedings under various sections of the IPC.

b) The very fact that this person was in charge of IT and had access to the passwords is enough to imply that nobody else could intentionally change the passwords.

c) There is no requirement to provide him with a letter of relieving. You may publish his photograph along with his misdoings in the leading newspapers and inform the public that he has no relation to the company and his credentials of working with your company cannot be relied upon. This needs to be done in addition to the police complaint.

d) The police complaint may also indicate his demand for the money (F&F) for disclosing the changed passwords, which amounts to a criminal act.

Under no circumstances should an organization bow before someone who holds it for ransom for illegal and criminal activities.

Kind regards,

Dayaannd L Guddin

HR Advisor

BOBST INDIA