Can We Terminate an Employee Who Verbally Resigned but Never Submitted a Letter?

Dear Seniors, Since April 2015, one of our laborers has not been attending work. He verbally agreed to resign from his job, but to date, he has not submitted his resignation letter to the company. Consequently, we sent a warning notice to his home address via registered post. However, as the employee has relocated to a different place, the letter was returned to us. Can we consider the returned letter as documentation to terminate his employment with our company? Alternatively, do we need to take any further action on this matter? Your clarification would be greatly appreciated.

Regards,
Renu

Put up a notice on the company notice board about his prolonged absence (if permitted by your standing orders). If possible, check his current address through the bank account where the pay was being deposited earlier. A copy of the returned registered letter with post office remarks can be kept on record. After that, you can terminate the employee.

Dear Renu, While any employee remains absconding for a long period of time, the case should be closed by issuing a Show Cause Notice within a 48-72 hour time frame. The notice should be sent through email as well as registered post. In this case, if you don't receive a satisfactory reply or no reply within the time frame after receiving the notice, then the employment stands terminated automatically as per the clause that needs to be mentioned in the notice.

Proof of Permanent Address

Now coming to your query... Do you have any proof of the permanent address the employee submitted at the time of joining? If yes, then the letter sent to that address would be considered delivered even if the employee changed their address. You can take action as per the warning letter. Remember to send the notice/warning letter through mail as well because in case you fail to deliver the letter to the home address, at least the mail delivery will enable you to take immediate action.

Action Without Permanent Address Proof

In case you don't have any permanent address proof of the employee and you only sent the letter to the address mentioned in your database, then in this scenario, the case cannot be closed. To address this, you may collect the employee's email ID and send them a Show Cause Notice as mentioned above and close the case within 48 hours.

Please note that the definition of absconding and the actions taken against it should comply with the standing orders of your company.

Regards

Dear Mr. Roy,

Thanks for the clarification.

We do have the permanent address of the laborer. I had sent the warning notice to that address only. However, he changed his residence to another location. He doesn't have an email address as he is illiterate. Additionally, he is not answering his phone. Therefore, based on your suggestion, I believe we can close his file with the returned letter received back from the post office.

Kind regards,
Renu

Termination Without Inquiry: Steps to Follow

Termination without conducting an inquiry will result in the employee being reinstated with back wages. Please follow these steps:

1. Send a show cause notice through RPAD/Speed Post so that you can track it. For double safety, send a person, preferably a security guard, to ensure the workman is not there. Obtain a deposition.
2. If no reply is received and the letter has been returned, send another inquiry notice.
3. Let this also go undelivered.
4. Conduct the inquiry, and on the first day of proceedings, document all details and adjourn for 10 days.
5. Send a copy by post, and if it is returned undelivered, mark it as such.
6. Start the inquiry on the second date, record the employee's absence, and adjourn for another 10 days. Send the proceedings, and note that the next hearing will be ex parte. If it is returned undelivered, document this.
7. Record all details, send the inquiry report and a second show cause notice before terminating. Provide a 10-day notice period. Then issue the order of termination.

Your efforts will be appreciated even if the person appeals to the APEX.

Thank you.

Dear Mr. Roy, Thanks for the clarification. We do have the permanent address of the laborer. I had sent the warning notice to that address only, but he changed his residence to another location. He does not have an email address as he is illiterate. Furthermore, he is not responding to his mobile phone. Therefore, based on your suggestion, I believe we can close his file by sending a returned letter with a cover from the post office.

Kind regards, Renu

If you have proof of a permanent address, such as a voter ID card, ration card, or government bank account, then the letter you sent would be considered delivered to the correct address. In this case, for safety measures, you can follow the advice given by Mr. Naathrao or publish a notice in the local newspaper and in the newspaper of his area. Alternatively, you may send an informational letter to the Gaon Panchayat Head of his village and resolve the matter within 2-3 days.

However, if you do not have any of those documents as proof of a permanent address, there is a risk that it may be perceived that you intentionally sent the letter to the wrong address to close the matter. In such a scenario, you may opt for the newspaper and Gaon Panchayat options.

I do not fully agree with Mr. HR Roy. Although you have sent the warning letter to the address provided by the employee in your Nomination/Joining forms and issued the appointment letter with the same address, you may consider closing this case as Long Term Leave of Absence (LOP) without further intimation. Your Appointment Letter may contain provisions stating this. If necessary (in case of any issues regarding the handover of documents, settlement, or cash), you may file a complaint at the nearest police station. I hope this information is helpful for your query.

The matter is being made complicated. It is a simple case of an employee absconding without informing the employer, and such cases are quite common. The employer should give notice to the registered address (hometown/village) and local address by registered post to obtain proof of delivery or receive remarks from the postman indicating non-availability of the addressee on record. The unopened cover with the postman's remark should be kept on file.

Additionally, send at least one more letter to the same address after a gap of, let's say, 7 days and maintain a record of it. It is essential to adhere to what is outlined in the standing orders. Send an SMS to the registered mobile number and save the SMS. Consider placing an ad in the local newspaper.

Furthermore, as a proactive measure, include a clause regarding termination in case of unauthorized absence. Finally, if there is no response, send a cheque for Full and Final settlement after adjusting all dues. Keep a record in case the cheque comes back undelivered.

Addressing Unauthorized Absence and Disciplinary Action

I take a little liberty to add one sentence in the matter of Mr. Pasupathieswaran's opinion. To notify his unauthorized absence in the local newspapers and direct him to join immediately, failing which disciplinary action will be initiated. If he fails to return to duty within the stipulated time, you should publish an enquiry notice for disciplinary action, fixing the venue, date, and time. This is in lieu of the notices sent by you that were returned undelivered. One more thing to add here is that your employee must have provided his permanent address for communication. Any letters/notices sent by the employer to the address provided by him shall be deemed as served. If returned, please preserve it as a record to produce as evidence in the enquiry.

In the interest of the principle of natural justice, the law does not permit the termination of any employee, whatever may be the violation of his employment rules or applicable standing orders, until and unless we complete the Domestic Enquiry process and prove the charges leveled against him, by giving him an opportunity to defend himself. The other aspects have been well explained by our learned members, and there is no need to repeat.

Regards,
Adoni Suguresh
Labour Laws Consultant