How Can We Manage Full and Final Settlements for Early Leavers Without Annual Benefits?

Request suggestion...

In our organization, there is a trend of employees leaving the job before completion of the notice period (1 month). For these people, we have to face much hassle while processing for the full and final settlement of the candidate, issuance of Release letter, etc.

How to tackle such situations... Please note, we have nothing as such called an annual component of the employees (like leave balances, medical allowance, or other allowances) to be adjusted with the notice pay.

Cheers,
Suchandra

Hi Suchandra,

The best thing in this scenario may be to not release the relieving letter and experience letter, and you can also hold back the last settlement salary. Actually, it is not required to do this, but if you manage to pretend this in a way that all the employees become aware of something like this happening in HR, it will make everyone aware of their notice period, and the result would be a changed attitude towards the completion of the notice period.

Hope this may help you.

Best Regards,
Gunjan

Hi Suchandra,

The organization has a policy of either one month's notice or one month's pay. This kind of situation that you are talking about generally takes place in sales organizations where targets are given to the employees. There is a lot of pressure from the boss in this regard.

Sometimes, employees can't take this much load and leave without informing.

Exits are of three types: Resigned, Absconded, and Terminated. Your problem is of the Absconded type.

To avoid chaos, full and final settlement should be done for the employees who have performed well in their service period. We can't hold back their exit salaries just because they didn't give a notice period. It might encourage a person to file a case, which in turn could spoil the company's image.

Factors like employee's performance, conduct, and behavior should be taken into consideration while doing the full and final settlement. As you have already mentioned that your organization doesn't have any leave encashment policy or something, then full and final settlement would become easy.

We can issue a Relieving letter and an Experience Letter. For a non-performer exit employee, a Relieving letter can always be issued, and for a good performer, an Experience letter, but only after the full and final settlement.

Hey Guys! Wake up. Good topic to be discussed!

Regards,

Chaitali Surat, Gujarat

Hi,

I have some confusion between "absconded" or "abandoned" from the services. Are they both the same or do they have different meanings?

Regards,
Poonam Sonawane

Hi Poonam,

There is a difference between "Abandoned" and "Absconded".

"Abandoned" refers to employees who have been terminated or let go.

"Absconded" refers to employees who have left without informing.

Hope this helps.

Regards,
Chaitali
Surat, Gujarat

Hello Suchandra,

Well, it's hard to say that it doesn't happen in any organization... I'm sure that all of us here would agree.

We would classify any "no-shows" beyond a period of three days under employees who have abandoned their jobs. For those "abandoned jobs," we provide no experience certificate or full and final settlement. They are considered "terminated," and we record it in their files. This is to ensure appropriate communication to anyone who might call in for an employment verification.

Hope this helps.

Joshua

Dear Friend,

Please add a clause in the appointment letter stating that candidates are required to provide a notice period or make a payment in lieu of it.

Regards,
Jaya 😊

Hi friends!

Thank you a lot for all your suggestions. Actually, for cases of absconding or termination, it's easier. But when somebody is not completing his/her full notice period and in some cases, their immediate line manager has no option left but to release the person, then what?

I'm gone, guys... Few more suggestions required.

Regards,
Suchandra

Hi,

I agree with Jaya's comment that in the appointment letter, there should be a clause stating that there has to be one month's notice in either case if either party wants to separate. Additionally, in the case of employees not serving their notice period or leaving before that, you can deduct the notice pay for the days they are not present. Furthermore, the relieving letter and full and final settlement copy should be given only on the day of separation, i.e., the last day of the notice period.

Hi,

The best thing you can do is to inform the employee to read through the appointment letter issued to him. It will be clearly mentioned that in case of resignation, one month notice is required or 1 month salary in lieu of notice. So, if an employee is leaving without serving the notice period, during the final settlement, deduct that amount for the short notice or for not serving the notice period. And most importantly, spread this information to existing employees.

A question for suggestion: In our organization, there is a trend of employees leaving the job before completion of the notice period (1 month). For these people, we have to face much hassle while processing the full and final settlement of the candidate, issuance of the Release letter, etc.

How to tackle such situations? Please note, we have nothing called an annual component of the employees (like leave balances, medical allowance, or other allowances) to be adjusted with the notice pay.

Cheers,
Suchandra

Hi,

The best thing you can do is to inform the employee to read through the appointment letter issued to him. It will be clearly mentioned that in case of resignation, one month notice is required or 1-month salary in lieu of notice. So, if an employee is leaving without serving the notice period, during the final settlement, deduct that amount for the short notice or for not serving the notice period. And most importantly, spread this to existing employees.

Regarding your question and suggestion, in our organization, there is a trend of employees leaving the job before completion of the notice period (1 month). For these people, we have to face much hassle while processing for the full and final settlement of the candidate, issuance of Release letter, etc.

How to tackle such situations? Please note, we have nothing as such called an annual component of the employees (like leave balances, medical allowance, or other allowances) to be adjusted with the notice pay.

Cheers,
Suchandra