How to Handle an Ex-Employee Demanding Payment After Leaving During Bond Period?

Handling Employee Disputes During Bond Period

A senior engineer left the job during the bond period. He had signed a bond for a year. While leaving, he claimed the bond is illegal. We requested him to serve a minimum of one month. He agreed but left in one week after too many arguments and denied any one-month commitment. We had problems with the project he worked on. We gave him part payment and asked him to sign all receipts.

We did not give him a release letter, and we promised to pay the due amount of the last month later (just to get him out of the office and stop his arguing). He called and wants his due payments after three months. He wants to visit the office and create a ruckus in front of other employees. He is working somewhere but not disclosing details on social media profiles. He still maintains our firm as the present employer on social media.

Seeking Advice on Managing Difficult Situations

How to tackle this over-argumentative and stubborn person? We know bonds are not accepted in courts.

Thanks,
Palak

You do not have to worry about it, but let me know if you have given your promise in your paper stating that you will pay him the rest of the amount later. If yes, you are supposed to pay, but you can still take a stand and mention that the project he worked on was incomplete, causing the company to face a loss. He has also not served the one-month notice period as clearly mentioned in his appointment letter (I hope it was so).

Try to explain all these points to him; if he is not willing to accept, you can inform him that you will involve the police (just to indicate that you are prepared to escalate the situation).

Frankly speaking, you cannot do much if he uses your company name on social media, but if he profits from it or if he deals with your clients using your company name, then you can definitely file a case against him with the required evidence.

Regards,
M. Kannan

Not in writing, but we have receipts signed by him even for the payment he did not receive. Last month, the amount was rupees 18k. We paid 5k and promised to pay any remaining amount due later, as he was not leaving the office until 10:30 at night, and we wanted to get rid of this "determined" guy who was simply not ready to leave the office.

You can clearly explain to the employee that since he has not served the required notice period, the amount has been deducted for that purpose. Furthermore, if he is unwilling to listen, you can inform him that legal action may be necessary if he does not cooperate.

However, it is essential to gather evidence to support the decision of not paying him, in case he decides to pursue legal action. In the meantime, it is advisable to avoid engaging with him.

Regards,
Ashutosh Thakre

Handling Social Media Misrepresentation and Unwanted Visits

If your company feels uncomfortable with his actions, such as using the company name on social media sites, you can send him an email suggesting the removal of your company name. Also, explain that legal actions could be taken against him if he does not stop using your company name.

Regarding his wish to visit the company, simply reply by stating that visitors are not allowed at the company unless there is a business need (which should be one of your company policies). Ask him to address the matter through email (or office phone if necessary).

Regards

Please look into the appointment letter issued to him and don't worry about the bond, etc. Send him a notice and ask if a one-month notice period was mentioned.

If you have his appointment letter, which is duly signed by him, then there should be no problem. But ensure that there is a clause in the appointment letter which states that in case the employee leaves the organization, he must serve 1, 2, or 3 months' notice, or in case the company asks him to leave, the company is liable to pay 1, 2, or 3 months' notice as applicable.

In the event that the employee has only served 1 week, you can deduct the rest of the amount from his full and final settlement. You may also choose not to provide him with his relieving letter as he has not served the appropriate notice.

Bonds are illegal, but the rest of the formalities must be in place, which he has not completed.

Regards

From what I read in your post, your actions are highly unethical and unprofessional. The engineer was working for you and he resigned. You wanted him to leave without serving notice and gave him part of the payment due to him, making him sign receipts saying he got the full amount. Now you are denying him the payment that you promised.

Legal Implications

From a legal point of view, coercing someone to sign a false receipt is an offense that can get you into trouble. If the payment of 5K is made by cheque, then you have more of a problem as he has proof that you did not clear and have got a false/forced receipt. He can even claim it to be forged.

Project Completion and Evidence

Do you have the necessary details of his incomplete projects, and have you sent him the necessary evidence? He can very well claim that he was willing to complete but was asked not to continue thereafter.

No, we wanted him to leave with notice. He initially agreed but later said he wouldn't continue for even one month.

Attribution: https://www.citehr.com/464380-ex-emp...#ixzz2XQ7DDyFv

He can very well claim that he was willing to complete but was asked not to continue thereafter. He initially agreed to serve for 1 month, then he "forgot" that he agreed! When he did not receive the full payment and release letter, he changed track and again became ready to serve for 1 month. We were fed up with his "anger" responses.

Somehow, I am not getting the full picture. In many cases, it is just better to pay what you promised and get rid of the nuisance value. Otherwise, you have to decide to stand firm and say: you did not serve the notice period, we are deducting the same, and after that, there is no money we owe you. And security will not allow you inside the office. But can you do that?

We pay by cash and get receipts signed. We already paid some amount to resolve the nuisance peacefully. His sudden appearance may be due to the moral support of present employees, as they could not blackmail the firm into increasing salaries.

Your last post reveals that there are underlying problems with your HR practices. Otherwise, how are other employees morally supporting him?

Regards,
Varghese Mathew

Maintaining Employee Responsibility and Decency

Tools do not inherently keep employees responsible and decent. You need to select the right person, provide a good and fair work environment, and have effective leaders at work to ensure things generally stay in line.

In the past, people relied on references and family background (in Kolkata, all job applications used to state: "I am from a respectable family"). Today, this does not matter as much. Release letters are not even required by all employers. Many would believe someone who claims, "I am being victimized by my previous employer, and they are not giving me my release." With the current talent crunch and high recruitment costs, an employer might just say, "Okay."

If the employee has gone off track by not serving the notice period or being stubborn, then you have also not followed the correct path by obtaining his signature on an amount he did not receive under false pretenses. Two wrongs can never make a right!

When you mention the moral support of present employees, it suggests that current employees are well aware of the situation. How do you expect employees to behave responsibly or be engaged? Present employees can either help enhance or damage your image.

There are many articles available on this site that can give you a fair idea of retaining employees. An experience letter can never guarantee to keep employees "responsible and decent." There are many ways to demonstrate the experience a person possesses or the kind of work a person is capable of doing if you do not issue a "release letter." If you want your employees to be consistent and perform well, then even your management style needs to follow suit! Do your employees have clarity on job expectations? Do they receive timely feedback about their performance? There are too many questions to be asked! You could also seek the help of a professional consultant to direct and guide you, your department, or management.

For a quick review, do read: How companies retain high potential workers - Times Of India, Retaining High Potential Employees | Strategic Human Resources Management | SHRM India

Addressing HR Issues with Ex-Employees

There are a few things that strike me:

• The company has not respected its own commitment to pay the balance amount.
• The company has deliberately taken a receipt signed by the employee for the amount it has not paid.
• Your own employees are supporting the ex-employee.

All these indicate the company's attitude and significant HR issues. Don't be surprised if the ex-employee files a case against you, as you have already admitted that the ex-employee is very stubborn and what he is asking for is what the company had promised him.

It is in the company's best interest to make a proper full and final settlement and pay the amounts that are legally due to the employee. Never forget that a separated employee is also your brand ambassador, and with today's technology, he is more powerful.

Regards,
Preetam Deshpande

We got the payslip signed for safety. We did not say we would pay the amount. We asked him to sign old payslips, and the manager also got last month's payslip signed. As we had not calculated the losses or the amount he should pay for not serving the notice period, he asked for the dues amount, and we told him we need to calculate whether we need to pay or receive money. Our HR consultant has advised us not to pay anything or provide any documents as he was abandoning the work. He was talking nonsense all day. He agreed to stay for a month. Then after a few days, he said he doesn't remember anything. We can't document everything in writing. We had to urgently hire a less skilled person at a higher pay due to his sudden change of mind.

Annual Pay Settlements and Employee Turnover

We settle increments and pay once a year. Employees negotiate hard to get their best pay structure. Problems arise when a competitor offers a "better package." They drop everything and run for a "better" brand and pay. They don't even want to hand over the job or serve a minimum of one month. They want higher pay when the project is in a critical stage. They ask for an increment when another person with a similar skill set has just left.

MNCs and Employee Release Protocols

Most MNCs ask for a release letter and confirmation from the previous employer regarding the employee's attitude. We give the best ratings to most individuals.

Regards,

You can very well choose not to pay dues as suggested by other members. Your first post mentioned that you promised to pay the remaining amount. However, your latest post states that you did not commit to paying the amount. It's all contradictory! It appears from your posts that you have already formed a belief in your mind. If employees are leaving at a critical stage of projects, then you need to seriously consider devising a policy and implementing checks. I am sure your consultant can assist you with this.

By the way, you wanted to know if you are supposed to pay or not, and I believe that has been answered. When you talk about confirming from MNCs, it largely pertains to the date of joining, leaving, reasons for leaving, and sometimes about remuneration too. You need to actively investigate reasons and conduct some fact-finding/probing.

I have seen people stuck with unwavering loyalty to companies that offer competitive remuneration, employee-friendly policies, and a positive work atmosphere, even with small and medium companies. I know of employees who, for various reasons, have left MNCs and are enjoying being a part of such companies.

Dear Palak,

Concerns About the Bond Period

You mentioned a bond period in your post and also mentioned that he broke the bond. What sort of bond was that? Also, as you mentioned that he was a Senior Engineer and you must have not given him any sort of training, I am getting a strong feeling that he might be right in saying that the bond was illegal, and this is the only reason you are not able to take strict action against him. Otherwise, it was simple; you could have adjusted his salary against the short notice period.

Reviewing HR Policies

I guess the problem is with your HR policies, and seriously you need to brainstorm on streamlining them. Be on the right side of the law, and you will be able to take action against the employees who are creating disruption or indiscipline at your workplace. Then, you would not need to make false promises, and this is why I guess Saswata was not getting the clear picture.

Regards

You lend books to the employees and ask them to use open-source community forums to learn. You are not teaching but asking them to take advantage of free resources to learn. So, how is this considered training at all? They can do this at home without your help. If this is what you are doing, the bond is definitely invalid. The consultants come for problem-solving of your specific projects, not for conducting classroom sessions on open-source technologies, I am sure. (Note: I do a lot of work with open-source technology, so I know exactly how things work in it.)

Do not argue with such employees. Let him go to court. Definitely, he will opt to go to court. You just keep telling him that management is not allowing you to process his payment and settlement. Bonds are not accepted in court, but we have to maintain the importance of the bond. We are entrusting the keys of our important business to such employees' hands, so we have the right to enforce the bond.

Regards,

Understanding the Challenges with Open Source Developers

I told you, I do a lot of work on open source. I know many of the FLOSS trainers, how they work, and how such software companies operate. From what you've said so far, I can easily deduce what has happened.

I don't know your background or position, but I assume it's HR. Your approach seems misguided. Your focus appears to be on keeping developers under control, which never works. Here, your bond is illegal. Even if it were legal, it wouldn't be effective. Enforcing a bond is too expensive. The employee can't be forced to work and might simply claim they don't have money. Plus, they could accuse you of harassment as the reason for leaving. No court will order recovery from personal assets like a house or car.

Even if you were to succeed, it wouldn't help. It's not that employees will stay on after that; it's that no one will join. The message will spread quickly across the user group. In extreme cases, the community might blacklist you and refuse any guidance, or even the FSF could audit you for misuse of GPL.

I understand your problem. Open source developers are very difficult to find, and there are few courses for them. Large companies like TCS and Wipro provide full classroom training for up to 3 months to meet their standards. In such a scenario, if you think you can retain people by restraining them, there is no hope. Incidentally, the new employer might even be willing to pay for the court case. 

Provide classroom sessions as proper training if you think it will make them better developers and more productive for your company. Don't think you can get away with making documentation to enforce a bond. The cost of training would be divided into a per-head cost, and the figures wouldn't help you enough. (Again, I know how your industry works.)

Sorry, members, I wrote a long post which may not be strictly in line with the thread and original question. I hope it helps us all to understand the scenario better.

Regards

Dear Palak, do not argue with such employees. Let him go to court. Definitely, he will opt to go to court. You just keep telling him that management is not allowing you to do your payment and settlement.

The Importance of Bonds

Bonds are not accepted in court, but we have to keep alive the importance of the bond. We are giving the keys of our important business to such employees' hands, so we have the right to get the bond.

Naresh, you are making a statement where you say bonds are illegal and still you need to "keep alive the bonds"! Isn't your advice itself unethical when you realize that it cannot be sustained in the court of law? HR's job is to ensure that we retain the people within the legal framework and also advise the management on what is ethically and legally right and wrong. Imagine the damage one could do to his or her company when one says that he will resort to illegal things for retaining the employee. Bondage and slavery do not gel well in today’s business environment. If your company is small, it could be swallowed by the court cases that it will be inundated with.

I believe Cite HR is a community where we must give right, legal, and ethical advice and not give advice that is based on crookedness or truancy. Hope you take this in good spirit.

Regards,
Naresh

Well, I think if you have given a signed letter mentioning that you will pay the due amount, then you should pay. However, you can tell him that the company faced a huge loss as the project on which he was working was not completed, and he also didn't serve the notice period. I can say it was a mistake since you have given the signed letter. It would have been better if you had settled all the things earlier by mentioning all this when he was leaving the company.

Also, concerning social profiles, you can't have control over them, so it would be better if you leave it.

Kindly check whether the payment was made by cash or cheque. If it was cash, it doesn't matter. If there is a legal case, you may need to appear in court to confirm that he received 18k.

Tighten security measures to prevent him from filing a petition against you in a nuisance case. Publish in a magazine that he is no longer associated with your company, and your company is not responsible for his business decisions. This will have a different impact on his reputation and his new company.

Different cases should be handled differently.

Regards