How to Handle Employees Ignoring Resignation Policies and Involving Police?

We have certain policies in our organization for resigning from the job. This is a standard practice in all industries, involving giving proper notice in advance and handing over duties and responsibilities. We have obtained signatures on the aforementioned policies from all employees. However, some of the workers are not adhering to these guidelines and are coming in for settlements. When we refuse their requests, they approach the local police station. The authorities also visit our office and insist that we pay settlements. Please advise me on this matter.

Regards,
Sunil

You must handle the situation diplomatically. Please invite the police officer into your office, offer him a cup of coffee, and explain that this case falls outside your jurisdiction. It will be addressed by the District Labour Inspector. You can politely guide the officer to direct the complainant to the ALC's Office.

Ensure you have all relevant documents prepared for your defense. It is important not to deny anyone's final settlement, and obtaining a signature for non-settlement goes against the law. Deduct the Notice Period pay from the Full and Final Settlement, settle the remaining balance, and issue the relieving letter, Last Pay Certificate, and Experience letter after completing the clearance formalities.

I agree with what Bhaskar is saying. Complete the formalities of the full and final settlement as per the policies of the company. Issue recovery letters to the workers if required, but complete the legal process.

You may issue relieving/experience letters which may contain a remark that the employee left the organization without completing the proper process of relieving (although it will be unethical/unjust). This will send a signal to other employees that if they leave the service without following the process, they will get such letters.

Regards,
Preetam Deshpande

Agreeing to what you mentioned, "Further, you cannot deny anyone's final settlement, and obtaining the signature for non-settlement is also against the law."

Deduction from Notice Period Pay

I would also like to know your remarks on, "You can deduct the Notice Period pay from his F&F Settlement and settle the balance amount and issue the relieving letter, Last Pay Certificate, and Experience letter after completing the Clearance formalities."

In certain cases, except when the employer feels the situation of the employee to be genuine. If employees keep on doing so, how would the company ensure the handover of tasks and run its functions properly? Mere settling employees' accounts and issuing them a relieving certificate is one side of the coin, but the motto of the company behind having a notice period policy is not deducting and saving money. Like Sunil has mentioned, it is quite obvious that one after the other all employees have started this practice. I would call this an integrity issue on the employee's part too. If employees start threatening companies like this, how are they supposed to run their functions smoothly?

Inquiry on Employee Behavior

Can you please mention what set/cadre of employees are doing so? What reasons do they give for not serving the notice period? Please cite the reason(s). What steps have you already taken to date (before posting this thread)? This would help members to think beyond that. Is there any pattern you've observed or any specific department or HOD involved in this behavior?

Anticipating your reply.

Regards

Non-Payment of Wages: Legal Remedies

Any matter pertaining to the non-payment of wages is of a civil nature, and the police cannot interfere unless fraud is alleged by the employees. The only remedy the employees have is to approach the Assistant Commissioner of Labour or the Industrial Court under Section 28 of the M.R.T.U. and P.U.L.P Act, 1971, if the case is in Maharashtra.

Regards,
S.M. Paranjape, Adv (Labour law consultant)
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