Employee Left Without Notice: Do We Need to Settle Their Final Pay?

Employee Leaving Without Notice Period

Our company employee left the company without a notice period. Is it compulsory to give him the full and final settlement? If not, what can the employee do against the company? If yes, what about the notice period?

Thanks and Regards,
Talib Ansari

What is the exit clause in your company? Was the employee on probation or was he a confirmed employee? What was the notice period clause mentioned? Technically, deduct the notice period as per the company policy and then pay his F&F (if any balance). But first, you need to be very clear about your company's exit clauses to ascertain the Notice Period Pay deductions.

Regards,
Ashutosh Thakre

When an employee leaves without notice, you should do the following:

1. Send them a notice asking them to return to work and serve their notice period.
2. If they do not respond, compute the cost of the notice period, the cost of equipment, etc., with them, and any other losses caused by them that you are allowed to recover (refer to section 6 of the Payment of Wages Act).
3. Pass entries in accounts debiting the amount to their salary and keep detailed documentation of the same in the file.
4. If there is a balance left after that (from the salary for days worked but not paid), you need to enter that in the unpaid wages register. You are not under any obligation to remit the money to them. Let them come and settle (which they probably will not). In fact, your notice should say that they need to pay the notice amount.
5. Please note that after a period of 3 years, the balance amount needs to be paid to the labor welfare fund.

Regards,