Navigating Employee Departures: Are We Legally Bound to Settle Without Resignation?

Dear Seniors,

Greetings of the day! I need your help regarding issues related to the full and final settlement of employees (Staff cadre).

Case

Presently, 2-3 marketing staff members have left the company without providing any formal resignation letter. They were not performing well, and as a result, they did not receive any increments. Therefore, we can say that both parties (employer-employee) are unsatisfied. Some of them have joined another company, while some are still idle. In summary:

1. Employees did not provide any resignation letter and left the company.
2. We want to settle their full and final amount at the earliest.
3. We have contacted them several times, but they have not come to our Head Office for the settlement. They may be busy or not interested in doing so.

Query

As an employer, are we legally obligated to proceed with their full and final settlement even though they have not responded to our oral reminders?

If we are legally bound, what should be the next steps or solutions in such a case? Please guide.

Please let me know if there are any further details required. Thank you for your assistance.

Best regards

The case you have presented is that of abandonment of services by the employees, irrespective of their cadre and the reasons associated with it. The legal course open to the management is taking disciplinary action against the absconding employees and dismissing them after a domestic enquiry, whether they take part in it or not.

If you proceed with the F&F settlement voluntarily, taking one-sided action without serving them with a show cause notice for their act of willful desertion from duty and allowing them to defend their position would not only be illegal but also encourage other employees to engage in such indiscipline. This could allow them to leave the company abruptly at any time, to the detriment of the company.

In the present case, you are not obliged to proceed with the F&F settlement, as the cases clearly involve abandonment of service and unauthorized absence on the part of the employees. This makes them liable to disciplinary action and termination from service as a punishment for their indiscipline. Additionally, they have engaged in illegal dual employment while still on your company's rolls, for which your company can take legal action against them. The other company can also terminate their service due to this illegal act.

Therefore, issue them a written show cause notice.

I hope this helps.