Employee Quit Without Notice: Should We Pay Her Salary and Provide a Relieving Letter?

One of our confirmed employees quit the organization without any notice period. Thereafter, she sent us a resignation letter stating she is quitting the company with immediate effect and claiming salary and a relieving letter. However, as per her appointment letter, she was required to serve a one-month notice period and hand over the job properly, which she failed to do.

Kindly let me know if it's advisable to pay her the salary and relieving letter.

Regards,
Vijay

Legally, every employee is bound to serve a notice period as per the organization's appointment letter (and not as per the offer letter) signed by him/her. After serving the notice period, the organization will complete the exit formalities, including full and final settlement, and will provide an experience letter and/or relieving letter.

However, the HR/respective authority can waive off the notice period in special cases and can ask the employee to pay a certain amount as a notice period buyout (please check whether you have this clause written in the appointment letter provided by your company).

Moreover, after meeting her and understanding her genuineness in leaving the company on such short notice, the HR/respective authority can still pay her salary and provide a relieving letter on humanitarian grounds.

Hope this helps you.

Regards,
Gaurav Khandelwal

No employee is encouraged to go on leave or abscond and suddenly send a resignation letter while demanding salary. It is suggested to advise the individual to come to the office, serve the notice period, properly complete the handover-takeover formalities, and then claim the salary.

Payment of Salary in Lieu of Resignation

Payment of salary in lieu of resignation depends on the company's HR policies. It is important to inform the individual to adhere to the company policies.

Regards,
Kumar

Handling Employee Resignation Without Notice

The employee, after the appointment, is bound by the terms and conditions of the appointment order. If she is not attending the office without prior sanction of leave, it has to be viewed seriously. If the management is forcing the employee to resign, then the above is not applicable. However, if she is absent without permission and has submitted the resignation letter, then the management has to send her a letter asking for an explanation for her absence. They should also inform her that she has to serve the notice period as per the terms of the appointment, or she must pay the specified amount (one month or two months or whatever is mentioned in the appointment letter) to be relieved. However, the management has the right to waive the notice period depending on the circumstances.

There has been an error on the part of the management, prima facie, to the effect that it kept quiet even though the employee concerned unauthorizedly absented from service for a substantial period. However, the management has to write to her seeking her explanation for having absented from duty without any information/permission, failing which her services shall be terminated with effect from the date from which she has been absent. In view of the position explained, the question of acceptance of resignation does not arise. However, in the case of her reporting for duty and explaining to the satisfaction of the management the reason for her absence in the manner as described above, she may be allowed to join, and her resignation be accepted after serving the notice period, or the management may set off the period by recovering the pay/amount due to her.

Please remember that cases regarding unauthorized absence from duty should be processed (after the permissible period) without any loss of time to control the vice of employees' unauthorized absence from duty.

Regards,
S.K. Johri

Handling Salary Release in Special Cases

Releasing salary in special cases, like this, depends on the HR policies of the organization. Check at your level whether this kind of situation has occurred before and what the final conclusion was if it did. Simply follow that principle.

Drop her an email to inquire why she left the organization without providing proper information (if you wish to do so).

Do not communicate with her over the telephone or mobile (strictly follow this). Cooperate with her if she replies.

I think you asked the question wrong. You probably meant, is it advisable not to pay her salary and give the relieving letter. You can always give it, though not required by law; that is a business/management decision. Nothing stops you from doing that. If you do not wish to give her the salary, etc., the following facts are in your favor:

1. She did not give notice when she left.
2. She did not complete her handover.
3. Even though she sent her resignation letter afterward.

You are under no obligation to pay her salary or give her an experience or relieving letter. Many companies, in such cases, keep in their personal files a computation of demand and set it off against their salary dues to that employee, and in most cases, it would be in the negative. If you do give her the salary and experience letter, please remember that you are then encouraging others in the company to do the same.

Termination of Employment Contract

The contract of employment can be terminated at any time by either party by complying with the terms of employment. Normally, it can be terminated either by serving a notice as prescribed in the engagement letter or by paying in lieu thereof. If your terms of engagement contain such a clause, you should accept the resignation by adjusting the pay against the notice period. However, you cannot stop the full and final settlement of outstanding dues. You also have the discretion to waive the notice period in special cases.

Disciplinary Action Post-Resignation

Disciplinary action could be taken against an employee during their service period and not afterward. Once they have resigned, there is no merit in taking such action at this stage. That action should have been taken much earlier.

When any employee in the organization is absenting unauthorizedly, you need to send them at least two notices. The first one will ask for an explanation for their absence and request them to resume their duties immediately. The second notice, if they do not respond, states that their services are terminated from the date of their absence and they are not eligible for any benefits they were previously entitled to. If this had been done, this confusion would not have arisen.

Regarding Your Query

Since the lady did not serve the required notice period, the outstanding amount can be recovered from her, and the remaining amount can be included in her Full & Final settlement. Issuing a relieving order is a secondary concern because she has not completed the necessary relieving formalities and has not been officially relieved; therefore, a relieving order is not required.

Experience Letter

As for the experience letter, it is a certificate that certifies an employee's service in the company. It is issued to employees who have behaved well. The management should provide it willingly and not under duress. The decision to issue the letter lies with the management.

From a humanitarian perspective, not issuing the relieving order could impact her future career opportunities. Without the experience letter, she may face difficulties in showcasing her experience elsewhere and negotiating a higher salary. This could have long-lasting negative effects on her career.

Considering these factors, you can make an informed decision. If you aim to deter the employee from repeating the same behavior elsewhere, you may choose not to issue the letters. This can serve as a lesson to other employees. On the other hand, issuing the letters and resolving the matter discreetly can prevent the employee from unnecessary hardship. It is advisable to maintain a professional approach throughout.

Regards,
Bharghavi

Every company has its own HR policies and practices. So, just go through your company's HR policies and find out what terms and conditions are mentioned in such a case. If there is a provision for a notice period, then it is definite that some ancillary provisions are also made to meet the situation.

Steps to Handle Non-compliance with Notice Period

Check what steps are given therein if any employee doesn't follow the proper channels of leaving the company. In this unexpected world, no one understands when urgency arises, so being a human being, you should treat this matter as a special case if the reason behind it is genuine.

Regards,
Usha Singh

First of all, she has to complete a one-month notice period before she will be eligible to receive any payment. You may provide her with the full and final settlement based on your policy after deducting the one-month notice period.

Regards,
Rajbir

First, you should talk to the employee to understand why she has resigned immediately. Does she know that upon resignation, she is required to provide a notice period? Unfortunately, many managements seem to be disregarding the impact on employees' lives. For instance, an employee may have received a better opportunity, but the management insists on the notice period. During this period, the management should make alternative arrangements, but they often fail to do so. Subsequently, they request the notice period once again. This delay could result in the cancellation of the better opportunity. This is when the management should act promptly.

Regards,
V. Subbarao

It depends on the problem. You need to talk to that employee in person, call that person to the office, and find out what the exact problem is because everyone has different problems in life. Being an HR professional, we need to identify the exact reason why the employee behaved in that way. If you can help that person in any way, then try to do so. Also, try to retain that employee if they are productive for the company. Even if it's our enemy and they come to us requesting information, we have to face them because HR must serve its purpose.

As I mentioned, if you are committed to your company, consider not paying your employee's last month's salary as a fine or a reverse settlement for not completing the service period. However, try to provide the relieving letter. Alternatively, if you believe the problem was genuine, make sure to pay her salary as well. We can provide you with various ways to handle the situation, but it all depends on the policies of your company and how much support you can offer.

I hope this helps clarify the approach you could consider. Let me know if you need further assistance.

I don't understand why all our colleagues are explaining what you should do when all the mistakes are on the part of the employee who has left the services without intimation, prior permission, or sanction of leave. She is bound to follow the rules and regulations and the appointment terms and conditions in letter and spirit. Only then will she have the right to raise the question of her dues and the relieving certificate.

Since she is basically at fault, you should act against her on disciplinary grounds and first issue her a charge sheet for her unauthorized absence from duty. Call for her written explanation, and if not satisfactory, order a domestic inquiry into the charges and then take suitable action, including termination or dismissal of her services on disciplinary grounds as per the certified Standing Orders of the company or the model standing orders.

She is certainly not eligible for the final settlement or the relieving/service certificate. Deal with her firmly.

All the best.

Regards,
Joga Rao