Absconding from a Job: Can It Affect Your Salary Recovery and Credit Score?

Absconding-Related Issues

If a salesperson is earning around $10,000 as their salary and leaves the company without any intimation, would that be considered absconding? In that case, does the company have the right to recover the amount as salary or notice period recovery? If the employee does not require a relieving or experience letter from the company, would the employee need to pay any such amount or not?

Impact on Credit Score and HR Issues

One more question: If a person absconds from a company, will it be displayed or impact their credit score (CIBIL) or other HR-related issues? Also, if the person does not disclose details about their previous absconded company to their new employer...

Regards, Gokulesh

Understanding Absconding and Its Implications

Abscondence by an employee automatically results in the abandonment of employment, which is a clear-cut misconduct. However, deciding on the abandonment of employment initially is a matter of fact, as it revolves around the lack of prior intimation, authorization, and further communication in this regard. If the employee remains incommunicado even after the employer's call to report back for duty or explanation, then only it could be concluded as a case of abandonment of employment.

Once such a decision is taken by the employer based on the facts, the next logical step is the termination of the services of the absconding employee after following the legal procedures. Termination of employment for any proven misconduct like abandonment of services precludes the employer from the recovery of any sums from the dismissed employee as per the contract of employment, other than the recovery of any outstanding loans and advances or property of the employer entrusted to him or its current value. The orders of termination itself would be self-explanatory.

Abandonment of services by an employee will have no impact on their CIBIL unless they face hardship in meeting existing financial commitments due to this. Disclosure of the facts of previous employment or its suppression will have its own impact on future employment, depending upon the rules of the prospective employment only.

Regards

Thank you, Umakanthan sir. Here, I would like to know if the employer sends the F&F letter asking for a payment of Rs.6300/- after deducting my earnings for 13 days. If I fail to make this payment within 7 days of receiving the letter, the employer has stated that legal action will be taken, and my new employer will be contacted. I am wondering, in this scenario, what should I do if I choose not to disclose my previous employment with this organization to my new employer and do not require a relieving letter or experience certificate? What course of action would you recommend in this situation?

Be honest and settle the outstanding amount that is due. Equity and fair play must always be practiced. Law will protect a person if he is law-abiding. Trying to play truant will result in stress, anxiety, and consequences that emanate from acts of omission and commission. So be true and fair.

If your version of the entire episode is true (of course, it is beyond any doubt from your last post that you are revealing the actual facts in installments, that too not complete yet), it appears to me that your previous employer and yourself are trying to outwit each other. You might have actually abandoned your previous employment for obvious reasons of unsatisfactory working conditions like overwork, poor remuneration, etc., and the new offer might have been more attractive and urgent. But what prevented you from resigning from your job formally after fulfilling the notice conditions? Again, why did you wantonly suppress the fact of your previous employment and the circumstances of your abandonment of it to your new employer?

Your previous employer's present move of initiating legal action for the recovery of the balance notice salary after deducting your salary for the days you worked will not withstand judicial scrutiny as there was no resignation from your end. If he treats it as abandonment of services, at best he can terminate you only after observing all the procedures. So, it is clear now that he has not yet terminated your service on abandonment charges so far, and that's why he threatens you.

My suggestion under these circumstances to you, therefore, would be to settle the issue with your previous employer amicably now.

Absconding from service is misconduct for which the service of an employee can be terminated. However, in order to determine absconding from service, ample opportunities are to be given by the employer to the employee, requesting him to join/resume the duties and provide an explanation. It is better to take a step by initiating disciplinary proceedings.

In your particular case, it is advisable to settle the matter amicably as already mentioned by the Ld. forum members.

Consequences of Leaving a Job Without Notice

When you leave your job without intimation, the previous employer is within their rights to recover the notice pay not completed. Whether they will do so depends on the amount involved and the disposition of the HR department, among other factors that are difficult to predict. While they may have sent you a notice to complete formalities, it's doubtful they would pursue the matter further.

Deciding Whether to Disclose Previous Employment

Whether it is a good idea to withhold information about your previous employment from a new employer is your choice and judgment. If it was a very short period that makes no difference to you, it might not be worth mentioning. How the previous employer knows your current employer is unclear, and you have not provided details. The reaction of the new employer is something you will need to assess.

Impact on CIBIL Score

CIBIL is affected only by defaults on financial commitments made to financial institutions, banks, and credit card companies for loans or transactions. It cannot be affected by a failure to pay for the notice period. If your previous employer is a bank and tries to use CIBIL to cause trouble, you can inform CIBIL that the negative entry is false, and they will reverse it.

Regards

Hello,

Any salesperson who doesn't have any reports under him, irrespective of designation and salary, the responsibilities are under the purview of the Sales Promotion Employees (SPE) Act of 1976, which in turn attracts the Industrial Disputes (ID) Act of 1947. The so-called gross misconduct of absconding from service cannot be taken for granted unless proved.

The employer has to follow due process to terminate an employee. Does this fall under natural justice?

One fine day, an employee comes out of the Intensive Care Unit (ICU) and becomes expensive for the company.

Thank you.