Senior Employee Left Without Notice: How to Handle the Three-Month Salary Clause?

One of our senior employees left the job without a notice period. According to the appointment letter, he is required to pay three months' salary to the company if he leaves the job without intimation or a notice period.

Request for Letter Format

Please provide a letter format in which the company will not pay the full and final amount, or the employee needs to deposit three months' salary first.

Regards,
Vikram Kumar

If the terms of employment mention that the employee has to give three months' notice and the employee has accepted those terms of employment, then what is wrong in giving notice if the employee does not abide by those terms of employment? All that Kumar is asking is to send a letter to the absentee employee. For sending a letter to the employee, what violation of law happens, can you please elucidate?

Procedure for Handling Employee Abandonment

For Vikram: If any employee abandons the employment, it is customary to send the notice to the last known address of the employee by registered post A/D. Since this is a senior employee, send a second notice after one month. If no communication is received, then conduct the domestic enquiry. If the delinquent employee fails to appear before the enquiry, management is free to strike his name from the rolls of the company.

I will send you the draft of the letter, but as of now, let me wait for the reply from Laxmi.

Thanks,

Dinesh V Divekar

Handling Employee Departure Without Notice

If terms and conditions are agreed upon in the appointment letter, then there is no need to wait for any proceedings except to arrange deduction from his/her full and final settlement if any. Otherwise, the employer has the right to seek a remedy from the proper forum. Simply send him/her a letter with reference to such and such clause of the appointment letter. You are liable to pay the payment in lieu of notice period for 1/2 or 3 month(s), whatever the period may be. The company has the right to file a petition against you if you fail to comply with the notice within 15 days of the receipt of this notice.

If the company has sufficient retirement benefits for the individual, then there is no need to ask for legal proceedings. The company has the right to deduct the said amount from his retirement benefits such as Provident Fund, Gratuity, Leave encashment, due bonus, etc.

Use of Soft Language in Communication

Please use soft language when you are writing a letter to your employee, whether he/she is senior or junior.

Sincerely,
Tanveer Ahmad Malik

I agree with Mr. Dinesh. The employer, in this case, has full authority to withhold the relieving letter of such an employee and term it as a case of absconding if there is no response from the employee even after sending a notice.

Warm Regards,
Tamanna Mehta

Thank you all for your suggestions. @DInsesh Sir, please send me the draft. I am waiting, sir. How can I approve our appointment to the Labour Department? If I do not approve the appointment letter to the Labour Department according to your suggestion, then I have no right to deduct three months' salary or take any suitable action. Am I still able to take action?

Regards,
Vikram

Dear Vikram,

As of now, please issue a simple notice of absence. Let's keep it straightforward. The rough draft could be as follows:

Date: -

To,

Mr. _______ (name of the employee)
Employee No. _____
_________ (address of the employee)

Absence from Duties

1. Your attendance records indicate that you have not reported for your duties since _____ (date). We have not received any communication from you regarding your absence, nor have you applied for leave before being absent from your duties.

2. Your unauthorized absence from duties is being taken seriously. You are hereby instructed to report for your duties immediately. Failure to do so even after receiving this letter will result in severe disciplinary action against you.

_________ (name of the signatory)
_________ (designation of the signatory)

Send the above letter by Registered Post A/D. When issuing letters for disciplinary reasons, ensure your language is assertive and carries the necessary impact. The employee's seniority does not affect this approach.

If the employee complies and reports, issue a show-cause notice and request an explanation. If the explanation is satisfactory, allow the employee to resume duties. If unsatisfactory, termination may be considered.

If the employee fails to respond or acknowledge the registered letter, proceed with a second letter referencing the first letter and outlining the consequences of unauthorized absence as per employment terms.

Should there still be no response, initiate a domestic enquiry through a third letter requesting attendance.

Based on the enquiry officer's findings, management can make a decision on termination. Note that the enquiry officer's role is to establish culpability, not recommend punishment.

Send the termination letter to the employee via registered post.

This procedure ensures a legally sound termination process. Adherence to these steps provides protection against potential challenges. Following these steps offers solid evidence of adhering to principles of natural justice, deterring interference from labor authorities.

In the case of the employee holding company items, mention this in the initial letter. For high-value items, consider filing a police report after ensuring sufficient evidence of the loaned items not being returned.

Regarding potential police action for non-compliance with the appointment letter terms, seek legal advice for clarity. Taking such action can signal the management's resolve and deter misconduct.

Regards,
Dinesh V Divekar
Beware of false knowledge; it is more dangerous than ignorance.