How Can a Startup Handle Frequent Employee Absences Without Resorting to Termination?

Hello,

In my office, two employees are taking leaves frequently. According to company rules, we allow only 1.5 leaves in a month, but they take more than 5-7 leaves. Verbal and final warnings have already been issued. They are repeating the same thing for the past 3 months.

Our company is a startup, and we don't want to reduce company strength by terminating these two employees. Please suggest what we should do?

Komal A. K
HR Executive

Dear Komal,

Sometimes, harsh decisions have to be made by management to instill discipline within the company. You can try to counsel the employees, and if they are not receptive, you can suspend them for a week after conducting a proper inquiry. If there is still no improvement, then you may need to terminate those employees. Failing to do so could create a negative impression on the minds of other employees and potentially lead to significant issues for the company in the future.

I hope this guidance is helpful.

Best regards

Dear colleague,

If, after verbal and written warnings, they are not improving, suspend them without salary for a minimum of 1 day and a maximum of 4 days for each subsequent unauthorized absence (remaining absent without prior permission or intimation) exceeding 1.5 days in a month as per your rules. If they do not show improvement, they are not fit for any organization.

Regards, V.L. Nagarkar HR Consultant

Sanction of leave is at the discretion of the employer/competent authority. Leave may be refused, and a show cause notice could be issued.

Leave Policy and Management Discretion

Leave is to be provided as per the rules/law of the land and not based on the individual rules of any company. However, it is at the discretion of the management whether to grant leave or not.

Handling Unauthorized Leave

In case an employee takes unauthorized leave or absents themselves without permission, you can issue them a charge sheet or show cause notice and initiate a domestic inquiry. You may also issue warning letters. However, if you do not take any strict steps (i.e., terminate following the proper procedure), then I do not think employees will rectify their behavior.

Hi Komal, I suggest having a friendly talk with these employees first to understand the reasons behind their frequent leaves. Is there any family reason, sickness, casual reasons, or anything else? Explain to them that their performance and contribution are valuable. However, this can only be consistent if their attendance improves. Give them a chance to meet the expectations. If there is no improvement after verbal or written reminders/warnings, consider taking strict action.

Establishing Basic HR Rules

I suggest that even though it's a startup organization, establish a few basic HR rules and issue a circular. It may not be smooth otherwise.

Hope this helps!

Hi Vaishalee Parkhi,

We have already had two friendly discussions with them, and a casual verbal warning was also given. One of the employees' reasons was confusing (a doubt type of employee).

Thank you.

Hi Komal,

You could also create a rule for improving this type of employee absenteeism. For instance, if an employee takes more than 2-3 days off in a month without prior information, they will be required to pay two days' salary as compensation for one day of leave. Perhaps this approach will be effective because money can be a significant motivator.

Hope this suggestion helps.

Hi Komal, bottom line, you have taken all the possible steps to convince them/warn them about attendance. Now, think of something different.

As you mentioned, your company doesn't want to lose them. Taking the point positively, as suggested by Mr. Gupta above, introduce the 'Attendance Bonus' (a nominal amount of Rs. 500 - 1,000, etc.) which will be apart from the salary. The eligibility criterion should be attending all days in the month—except weekly offs; not a single leave (even though sanctioned) should be allowed. Maybe it will motivate these employees. If not immediately, at least they will positively think about the scheme. Money matters!

Your company being a startup would have a few employees, right? So it won't cost much for the company. Talk to your management about it.

If not feasible, take the strict action as rightly suggested by the seniors above.

As a last chance, start looking for potential candidates/replacements for them if you see no positive change is taking place.

You can email them an official message stating that they will be terminated if they repeat the same offense without any prior notice.