Ex-Employee Left Without Settling Client Payment: Can We Involve His Current HR?

One of our ex-employees, Mr. X, resigned from our organization in December 2011. He did not properly complete his relieving formalities. We have a specific issue where a customer, previously managed by him, owes the organization Rs. 11 Lakhs. It is the ex-employee's responsibility to collect this payment from the customer. Despite multiple follow-ups with both the customer and the ex-employee, the payment is still outstanding.

Additionally, the ex-employee owes the organization Rs. 40,000/-. We are aware of his current employment. Can we apply pressure by contacting his senior officers or HR department?

Kindly advise on how to handle this situation.

Reason for Resignation

What is the reason for resignation?

Recovering Amount Due from the Customer

Now, can you recover the amount due from the customer?

Employee's Responsibility in Recovery

If the customer is not interested in paying the amount, is it solely the employee's responsibility to recover the due amount?

You should find a way to recover the amount from the customer. You may issue a legal notice to the customer with the help of an advocate.

Employee Responsibility

An employee is a representative of the organization. They are responsible for representing the organization on its behalf, and all responsibility and accountability lie with the organization. The employee will only be held responsible if they commit a breach of trust between the customer and the organization. The employee is responsible for only Rs. 40,000, which they owe to the company.

Settlement Considerations

Have you given full and final settlement to the employee? You can adjust Rs. 40k with their full and final settlement.

Ethical Concerns

Are you the owner of the organization? Why do you want to harass an ex-employee to recover 11 lakhs from the customer? Has the employee taken the amount from the customer?

If you are an employee and when you leave the organization, the owner starts doing the same thing to you, how would you feel?

I request that you do not harass others.

Regards,
Manjay

Thank you for your response. He has resigned from his position due to a better offer and opportunities in a leading organization. We have not yet settled his dues; the amount of 40k, which he owes to the company, is pending after adjusting his settlement amount.

Commitment on Customer Payment

At the time of relieving, he had committed and assured that the customer payment of Rs. 11 Lakh would be collected before January 2012. However, he is now not taking any responsibility for the customer payment or his personal dues.

Kindly provide your suggestions.

You may issue a notice for the recovery of 40K to the ex-employee. He is in no way responsible for the recovery from the customer. You have to deal directly with the customer and issue a legal notice to the customer.

Regards,
Manjay

Releasing him without any written consent is just a foolish act. However, now issue him a letter for the settlement of accounts and responsibility for the recovery of dues. Anyhow, if he accepts and promises for a future date, then it may serve as evidence.