Understanding Resignation Process, Salary Settlement, and Employee-Employer Relationship

Dear All,

Please advise me, what is the meaning of resignation? The reason for asking is that when I informed my department that someone has submitted his resignation, the department told me that we can't remove his name from the roll; we can only hold the salary.

So, now please advise me, can I remove his name from the roll, or only hold the salary?

Dear Anurag,

The legal definition of resignation could be, "The formal notice given to an employer of voluntary termination of employment by an employee." There are no laws governing employee resignations, but proper etiquette should be followed in order to avoid parting on bad terms.

When an employee submits his/her resignation and quits the job, the employee-employer relation ends itself. So, on the question of "Removing the Name" of a resigned employee, I suggest that his/her name can be removed from the rolls of the company, and the full-and-final account of the employee should be settled.

However, on the question of holding salary, I would like to inform you that if an employee has properly resigned from the job and been relieved from the services of the company, then his/her salary cannot be withheld by the employer under any circumstance. It could create problems for the employer if the ex-employee complains against it.

Whereas, if there is any so-called "Notice Period" factor, then in that case, the solution can differ from case to case.

So, if there is any such thing, please let us know.

What should we do if the employee is not coming for his/her full and final dues? Will he/she be on the roll until his/her full and final?

Regards,
Anurag

If an employee submits their resignation from the job and it is accepted, or if they stop coming to work, the employee-employer relationship comes to an end. After that, their name should be removed from the company roll. It doesn't matter whether their Full and Final (FnF) settlement is completed or not.

However, if the employee does not come to settle their FnF, then in this case, just prepare the FnF Statement. If the amount is payable, send the FnF Statement along with the cheque to the employee's address via Registered AD. If the amount is recoverable, send the FnF Statement along with a covering letter. In that letter, advise the ex-employee to clear the dues and send a Demand Draft (DD) in the name provided.

I hope this clears up any doubts. Cheers.