Employees Absconding.... Need To Take Immediate Action

Dear Friends,

Despite noticing the numerous discussions on absconding cases, I am seeking help on the same subject.

I have joined a manufacturing unit and have been informed by the MD that there are too many absconding employees who have left the organization without serving the notice period. This has been hampering the projects undertaken by the organization. During the discussion, he acknowledges that he happens to lose his temper at times and has been taking the employees to task as he finds some of them lethargic in discharging their duties. A similar situation is seen with top management personnel too, wherein a few have left overnight after serving the organization for over 3 years.

I am not exploring options to take action against the absconding employees, but instead, I would like to take control of the situation and ensure that henceforth anyone who is leaving at least serves the notice period so that the organization will have time to identify a suitable candidate.

The MD wants immediate action on this and has suggested retaining the original certificates of the employees or retaining 20% of the salary and depositing it into fixed accounts to ensure that the cases of absconding decrease.

Please suggest if this can be exercised or any other alternative solutions.

Thanks & Regards,

Pramod

I am based in the UK and am not an HR expert. However, after reading previous posts on this topic, I am rather disturbed at your idea of retaining original certificates. I think it is highly unethical and could even be illegal.

Put yourself in the shoes of those who have left or are going to join. How would you feel if 20% of your wage was withheld as surety? What do you mean by 20% of salary (One month salary or one year)?

I think the MD has to undergo therapy for anger management if that's the cause of people leaving. If senior management staff have left overnight, has the company conducted any exit interviews by mail to find out why they have left?

While there is nothing in law to stop you from keeping the original certificates of new employees, it will be a problem if you do not return it in case one certificate is damaged or lost. Furthermore, the candidate can make a police complaint, and your managing director (and you yourself) could be in jail for not returning the certificates.

For existing employees, asking for these certificates would be a change of terms of employment and cannot be done without their individual approval. This would be covered by the Industrial Disputes Act. Also, there may be clauses in the standing orders that do not allow you to do this.

The other idea - holding back 20% of salary - is illegal. It violates the Payment of Wages Act, and you will be liable to a penalty for the same.

At best, you can offer retention bonuses for those who do not leave in a hurry. However, considering the reasons for absconding cases, I have my doubts about whether that will work.

Hello Pramod,

Simhan & Saswata Banerjee have already provided their views on retaining certificates.

However, I don't want to get into that angle at all.

Maybe a much better and easier solution to the problem would be for your MD to change? It's in his interest more than that of any employee, including you.

Let's look at it this way—half the problem is already solved since your MD realizes and accepts that his temper isn't cool all the time. Most CEOs/MDs in such situations fail to see that they are, in fact, the problem rather than the employees who abscond. So, to that extent, you have a half-solved problem already.

I would suggest that he seek some professional help to enable him to add soft skills to preempt such situations in the future. This would be much easier for him to handle rather than facing all the consequences of situations (most of which he may not initially visualize) that could arise from retaining the original certificates.

Also, don't underestimate what Saswata Banerjee mentioned: "a candidate can make a police complaint, and your managing director (and you yourself) could end up in jail." I have recently seen this happen in the city where you work—fortunately for the employer, the employee was in the wrong on a few other counts.

You also need to ensure that this is the only reason why employees abscond—or are there any others that have not yet come out into the open?

The reason I think this should be checked out is that it's understandable for top management executives to leave, as they would most likely be in direct contact with the MD daily. But how come lower-rung employees are also absconding? There could be more than one reason contributing to this situation.

Regards,

TS

Please make your MD understand the ground realities. He cannot run his organization like his home! There are various rules, guidelines, and laws to support employees. Such rules were evolved the world over because of the misuse of authority of bosses like yours! Instead of threatening, holding back money, original certificates, etc., you can consider giving promotions and increments cumulatively for the years of service rendered.

Similarly, one of the reasons for the employees leaving the organization could be the attitude of your boss. It is better to bring the errant employees to the discussion table, motivate them, train them, and make them assets for your organization.

Best wishes

Dear Pramod, You have received some excellent suggestions and pointers from HR experts. As you can appreciate from the following link Leaving the dream: Infosys battles worker exodus | Reuters, even large firms are having problems of attrition.

Could you also kindly give more information about the size and the nature of the business? From the information given in your last message, it is not clear whether the MD is qualified or not. Being young, it should be possible to change and keep his cool.

Dear Pramod,

I didn't have as much experience as the friends mentioned above. I thought you might have forgotten that you are also an employee of the same company. An employee leaving the company without prior intimation indicates they are facing issues with the management, whether it's due to salary delays, work pressure, or other reasons. My simple suggestion is to consider the situation from the employee's perspective rather than solely from the management side. By doing so, you will be able to address this issue more effectively.

Furthermore, I recommend engaging with the employees and encouraging them to share their concerns with you. If these concerns are valid, you can then escalate them to the Managing Director.

In addition, if you decide to withhold certificates or salaries, as mentioned by the friends earlier, both you and the Managing Director may face legal consequences.

Please accept my apologies if my suggestions are not valuable or if I have made any incorrect statements.

Thank you.

Dear Pramod,

I don't have as much experience as the friends mentioned above. I want to remind you that you are also an employee of the same company. When an employee leaves without prior intimation, it usually indicates issues with the management, such as salary delays or work pressure. My suggestion is to try to see things from the employee's perspective rather than just from a management point of view. This approach might help you resolve the issue more effectively.

Furthermore, I recommend interacting with the employees and encouraging them to share their concerns with you. If the issues raised are valid, consider discussing them with your Managing Director.

Additionally, proceeding with actions like withholding certificates or salaries, as suggested by others, could potentially lead to legal complications for you and your MD.

Please forgive me if my suggestions are not helpful or if I have misspoken.

Thank you.

Employee upon joining may be required to sign a bond with the surety of two serving employees to serve for a stipulated period, for example, 5 years. Before leaving, the employee has to deposit the amount or face forfeiture of all his dues with the company along with the recovery of the amount from the employees standing as surety.

Hi Pramod,

If your employees are leaving the organization without notice, it means they are not satisfied, or they may be afraid that informing management will lead to mistreatment regarding the handover process or other issues.

My suggestion is to start conducting smooth exits for employees and avoid mistreating them. Conduct exit interviews to analyze why employees are leaving and try to address those issues.

Regarding the retention of original certificates, it is completely illegal to do so. If you have already done this, you could potentially face a dilemma at any time. While you can withhold salary, consider offering it as a retention bonus instead.

Ensure that all employees are issued appointment letters to make them aware of the notice period. If someone leaves immediately after receiving their salary without serving notice, you can deduct their salary as per the notice period outlined in the appointment letter. If there are still outstanding dues, consider sending a legal notice for recovery.

Implement these practices, and hopefully, you will find a better way forward.

Thanks,
Suman Singh
9736428872

I read a piece of news about Diwali gifts given by the Chairman of Hari-Krishna Exports, Savjibhai Dholakia, to his employees. I wonder if any employee will leave the organization. If organizations treat their workers in such a generous manner, the attrition rate will certainly decrease.

Here is the link to the article: [Diwali gift: Flats, cars, jewellery to 'loyal staffers'](http://www.thehindubusinessline.com/news/diwali-gift-flats-cars-jewellery-to-loyal-staffers/article6519875.ece)

On the other hand, I wonder if the news is even true, and to what extent.