Is It Permisible For An Employee To Impose Loss To Company Due To Poor Performance And Still Get Paid His Salary???

H.M.MOHSIN PERVAZE
Dear Liza

You already have some great inputs from TajSateesh, RajKumar and other members.

You hadn't mentioned whether you had paid them any salary at all throughout the period they worked. From going through the posts and your replies, I get the idea that you had placed strong reliance on them and so are enraged when they turned you down. Being an Engineer yourself you shouldn't have let these guys have freedom to do stuff you won't want them to. Its also surprising that this has gone unnoticed by you all this while. When an employee has shown his intent not to continue service, you should have immediately taken steps for securing your data and all that has their access from the office and from outside. Perhaps you must have been affected emotionally when this happened that didn't allow you to think much. You're also acknowledging that they were working hard to get the system up as you been with them personally. Imagine a situation, the project was going on successfully and completed to a state of 95% and suddenly your engineer resigns for a better prospect and quits the job. I am narrating this situation as almost every employer faces the same issue nowadays with a lot of jobs for employees like fishing inside the fish tank at your home. As others said you need to be prepared to face it. But however you're ready to solve a 1000 hurdles, you might face 1001 and that's common in any business, but it is very complicated in a startup firm where the Capital is too low and all the money goes out from an individual's pocket. Also how did the second person resigned at the same time, was he not competent enough to do it without the Senior.

How can they harm your data when you have their documents in your possession. As TajSateesh said, you could get a legal advise as you got proof for them manipulating with your systems.

All the best, but remember focus mainly on the progressive aspect and try and maintain a backup option unlike before, than worrying over the failure.
Raj Kumar Hansdah
Dear Liza

Notwithstanding what has been said earlier, indiscipline or wilful damage or causing loss of company's property including any "work-in-progress" whether tangible or intangible products such as those related to data, software programs etc. should be viewed seriously and strict action can be taken on these acts of misconduct - whether they are stated or implied.

As already advised, you may seek legal advice on this and force the ex-employees to un-do or compensate the damage to the extent possible or permissible.

Recovering compensation for any wilful damage including theft (of tangible or intangible products in any stage of development) to an extent permissible or possible is entirely lawful. However, please note that this is entirely different from any "business loss" for which employees are not directly responsible.

Accordingly, you may follow-up this aspect while doing the Full & Final settlement and settling their outstanding salaries.

Also, you are at liberty to record appropriate remarks in the Relieving Letter or Experience Letter which can reflect the true state of their contributions (or lack of it) during their tenure with your company.

Hope you would go ahead with a fair and legally-compliant line of action on this.

Warm regards.
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