How Should I Handle a Resignation When the Employee Refuses to Serve Notice?

Guidance Needed for Handling Resignation and Notice Period Issues

I need your valuable guidance. One of my staff members has submitted his resignation. He is unwilling to serve the one-month notice period and instead wants to be released in 15 days. During this period, he is on leave and refuses to complete his pending work. In this situation, what action can I take against him? Should we issue a termination letter even though he has already resigned? Management has advised against paying him in full and final settlement. In response, he has threatened to take the matter to the Labor court. As an HR professional, what steps should I take in this situation?

Regards,
Vrushali Saraf
[Phone Number Removed For Privacy Reasons]

If the employee is NOT ready to serve the notice period, you can deduct his salary (basic) for the notice period. You can go through the appointment letter given to him if any. As he has already resigned, there is no question of termination. Hope this is of some help.

Regards,
Rajeev Dixit

Steps to Handle Employee Resignation Without Notice

1. Do not terminate.

2. If the condition in the appointment stipulates that he has to serve a notice period of, say, 30 days, you can adjust from the money due to him.

3. Mark him absent for those 15 days and send a letter to him stating that he is being marked absent as he has not submitted a leave application.

4. If he has submitted a leave application, adjust it against any Earned Leave available.

5. Send an acceptance letter indicating the adjustments and also ask him to produce a clearance certificate. Thereafter, if he wants to take up the matter with the Labour Department, let him. You have a strong case.

You also need to determine whether he is a workman under the Industrial Disputes Act. If not, then he can file a petition under the Shops and Establishments Act if there is any such provision in your state. Please verify.

Regards,
Sivasankaran

Don't terminate him. Since his appointment order holds the clause of one-month notice pay, treat his absence against his EL credit and work out the full and final settlement by adjusting the EL days. Send the full and final settlement by cheque to his last known address by registered post with acknowledgment due. Don't transfer the money into his bank account or send the cash through someone.

Since the cheque has not been received by him, keep the money with you for three years and then remit the same to The Secretary, Concerned Labour Welfare Board as unpaid money towards the employee.

Regards,
Raju

The management has every right to deduct the salary as notice pay if that clause is mentioned in the appointment order.

Regards,
Sebastian K. S