Absconding Without Notice in India: Can Companies Take Legal Action Against Employees?

If anyone absconds from a company without paying the notice period amount or serving the notice period, can the company take legal actions against the employee? The company is based in India.

If you have signed a bond or agreement, then only you can seek legal action. If not, you can withhold his FnF (Full and Final settlement) and relieving letter.

You can only hold onto his F&F and relieving letter; otherwise, what else can you do? Further, you can recover the notice period of one month, depending on the position he was working in. If the employee falls under the category of a workman, then only one month's notice period is legally recoverable, not more than this. The IESO/Shop Act recognizes a notice period of one month.

In the case where an employee is working in the capacity of a supervisor/manager, then the notice period as per his contract of employment shall be recoverable through a civil suit. This further depends on the facts and circumstances of the case.

Contrary to what was stated above by a learned fellow member, I would like to state that even if he has signed a bond/indemnity, you cannot hold him. In such a case, it will also not be tenable in court.

Dear Sneha,

With respect to your post regarding legal action against an absconding employee, I would like to explain that the terms of the appointment letter will be considered as the basis to decide the course of action. The notice period or payment in lieu of the notice period is applicable when an employee wants to resign from the service. In this case, you state that the employee is absconding, i.e., he is absenting himself unauthorizedly. Therefore, in the present case, the action as provided in the rules or appointment letter for unauthorized absence has to be taken. Such action would be legally valid in terms of the appointment letter or rules of the Company.

If an employee has committed embezzlement/fraud or any other kind of criminal breach of trust, then your company can move the court by following the due procedure of the law.

This is all that your company can do. You cannot recover any kind of payment in lieu of notice or compensation unless your company can substantiate heavy loss on account of the employee's absence. But in that case, the terms of the appointment must contain a condition to this effect.

It is suggested that the appointment letter needs to be drafted carefully with relevant terms and conditions for the future.

Regards.

Procedure for Removing an Employee from Muster Rolls

Supporting the above query, please provide inputs on the following:

Please share the procedure to remove an employee's name from the muster rolls if he/she absconds from the company without resignation and service of the notice period.

Legal Implications of Termination from Muster Rolls

What would be the legal implications an employee can raise if a company terminates an employee from the muster rolls?

Regards,
Sekhar

Your query is about how to remove the name of an absentee employee who has not resigned or given notice. The golden rule in such cases is to refer to the terms and conditions of the Appointment Letter and the disciplinary rules of your company. However, in the absence of any written rule on the subject, a written notice should be sent to the absentee employee, intimating the fact of their unauthorized absence from the respective date. An opportunity must be given to them to report to duty immediately. It should be further intimated that the services of the absentee employee will stand terminated without any further reference or notice if they fail to report back to duty by the due date.

After the expiry of the due date, if the employee does not report back to duty, a written letter should be sent to the last known address stating that their services stand terminated and their name is removed from the muster rolls of the company.

If the above procedure is followed, the absentee employee cannot claim any compensation through any court except the dues of wages, if any, that may be payable to them subject to the adjustment of the company's outstanding, if any.

Regards,
Srivastava C.M. Lal

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