How to Handle an Employee Who Left Without Notice and Is Now Threatening Your Company?

Dear all, I require all of your valuable suggestions and inputs on the matter below.

Employee Departure Without Notice

One of our senior accountants left our organization on 11-07-14 without a resignation letter or any information. When we contacted him after a week, he claimed to be ill and unable to return to the office. He stated that he would rejoin once he recovered.

Discovery of New Employment

Later, we discovered that he was working at another company and was not actually ill. His current HR confirmed his employment from 12-07-14 and provided us with his appointment letter.

Termination and Threats

Subsequently, we sent him a termination letter on 25-07-14 and also mailed it via speed post. However, he is now threatening our management.

Password-Protected Files

Furthermore, we found that all important accounting files are password-protected, and he used the software 'Folderlockfree' to hide tax-related files, which are also password-protected.

Salary Demand and Threats

He is demanding payment for his 11 days of salary and threatening to report us to the sales tax and excise office if we refuse. It is important to note that he is not entitled to any salary as per our company policy since he did not serve the required 30 days notice period. While we are willing to pay him, we need the passwords from him first. Despite our requests, he refuses to cooperate and return to the company. He has also been verbally abusive to our managers and made false allegations against me, the HR.

Police Complaint

We filed a written complaint against him at the local police station, but they did not provide a resolution or register our complaint.

Could anyone please suggest how to handle this situation with such an employee and prevent similar incidents in the future?

Thanks and Regards,

Amit Kumar

The way you have expressed the issue in your quote, it is evident that the said employee is not loyal to the company. He left the company without furnishing a proper resignation and handing over. Kindly let us know under what circumstances he did so (such as any negative instances in your company) because any senior person will not do so without a reason.

Anyhow, what he has done is neither ethical nor professional. You might have a copy of his appointment letter duly signed by him. Just send an official letter to him quoting the clause of resignation/termination and notice period. Since he has not served the notice period, the same can be waived off in his Full and Final settlement.

Furthermore, if he is not providing you the passwords, you may seek help from any IT expert. If it's not working, you may proceed with legal action against him.

Regards,
Prabhat

Legal Implications of Dual Employment

Generally, companies mention in the offer letter that an employee cannot take up full-time employment with another company simultaneously. If your offer letter has this clause, then what your employee has done is illegal, and it is a valid clause for dismissal. No notice period is required from the employer under this circumstance.

Handling Cybercrime and Intellectual Property

You can lodge a complaint against the employee with the Cybercrime division. When an employee resigns or is terminated, he is bound to submit all assets of the company to the employer. Files are intellectual materials of the company, and he is supposed to hand over those too. If he refuses to share the password, it amounts to a gross violation, and even a criminal case can be registered with the cyber cell.

Addressing Threats and Compliance

You say that he threatens to complain about Sales Tax and Excise. He can do nothing if your company has not done anything wrong on the tax front.

Public Notification and Legal Consultation

Send a registered post or speed post. If he doesn't oblige, publish it in the newspaper that 'Mr. X has not been reporting to duty since 12th April and was found to be working with another company. Therefore, his services were terminated on 25th April. Customers, vendors, and the general public are informed that Mr. X is no longer on the company's payroll and are cautioned not to deal with Mr. X regarding any transactions with the company.'

Check with the company's advocate on this.

I agree with the opinion of Mr. Shivaramakrishnan, who has guided you suitably. Since your account has crossed all the limits as an employee of the company, he deserves severe punishment. In this connection, I suggest you follow the law. Send a notice to him for his unauthorized absence or absence without leave as per your Certified Standing Order. If not, follow the Model Standing Order. Call for his explanation, showing cause why disciplinary action should not be initiated against him for his alleged unauthorized absence. If he fails to submit his explanation, then order a domestic inquiry by appointing an Enquiry Officer. Send an inquiry notice to him stating the date, time, and place of the inquiry. If he fails to attend the inquiry, conduct the proceedings ex-parte. Upon receipt of the findings from the Enquiry Officer, pass an order for his dismissal from the services of the company.

In the meantime, please keep his present employer, where he is working, informed in writing and mention all his attitudes. Let them realize that they have selected the wrong person. Without relieving him from the existing company, the next company should not appoint him, which is against ethics, and, in fact, they should demand a relieving certificate. This is against the law. Also, make a complaint in writing to the Labour Commissioner of your jurisdiction and request their intervention in the matter. As this is a case under the Industrial Disputes Act, 1947, all these should be resolved within the purview of the law. In such a case, the police cannot register your case unless it involves fraud, cheating, theft, etc., as per Sec.420 of the Indian Penal Code. Still, it is advisable to seek legal opinion from your Advocate.

My Contribution to the Forum

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Regards,

Adoni Suguresh

Sr. Executive (Pers, Admin & Ind. Rels) Rtd

Labour Laws Consultant

Dear Mr. Adoni/All Members,

Please accept my heartiest thanks for all your valuable suggestions and feedback. Our files have been unlocked with the help of an IT expert, as suggested by you. I will discuss this case with my director based on all your suggestions.

Thanks & Regards,
Amit Kumar