How to Handle an Ex-Employee Refusing Task Handover Over Incentive Dispute?

Hi All, I need your inputs on the below-mentioned case:

Employee Exit and Pending Tasks

One employee of my company recently left the organization on March 10, 2018, after serving his notice period. We have completed his Full and Final (F&F) settlement along with providing the relieving and experience letters. Now, his Reporting Manager has approached me and mentioned that although the employee has handed over almost everything, there are a few pending tasks for which they mutually agreed, on a personal note, to address later.

Incentive Eligibility and Dispute

Additionally, the employee was eligible for certain incentives, which were due only after completing one year of service, a milestone he was close to achieving in the upcoming April. However, the Reporting Manager has informed me that the employee is now refusing to provide the remaining handover and is insisting on receiving the incentives first.

I am considering whether we should communicate this situation to his current company's HR via email. I would appreciate your valuable suggestions on this matter.

Thanks & Regards,
Ankita Bisht

Do you want to follow everything is fair in... and deem the situation to be warlike. Better, issue him a notice to fulfill his part by a date to be specified before demanding his dues. Failing which you will be compelled to take necessary action for realizing the dues of the organization, including writing to the HR of the new organization. Await his reaction; most likely he will comply.

Now, his Reporting Manager has come to me and said that although the employee has provided almost the entire handover, there are a few things left for which both of them agreed on a personal note to address later.

The reporting manager has mishandled the case. The reliance on a personal note depends on his integrity and the value he places on his words. What type of items were left out before the employee quit? The employee is aware that he is not entitled to certain incentives and is negotiating to secure them.

Writing to the new HR may lead to the employee reacting further adversely. The new HR may not take it too seriously either. Therefore, assess what specific information you require from this person and determine if it is worth investing time in negotiation.

Thank you, @KK! HR & Nathrao, for your valuable suggestions. Though I agree on the point that we cannot do anything on monetary terms because the F&F is already done, we are not giving his incentives as he has not completed one year as per the norms.

Also, the motive to drop a mail to his current company HR is only that such kind of employees can be harmful to any company in the future. They should taste this lesson to not repeat such kind of practices in the future.

Regards,

Handling Handover Obligations with an Ex-Employee

It would be better if you write a letter to the ex-employee, stating that he is obligated to fulfill the duty of handing over the charge in full. Due to a gentleman's agreement with the reporting manager, it was decided, albeit verbally, that a certain handover would be done at a later date. Please ask him to fulfill this obligation and hand over the charge as explained by the reporting manager, and then collect any remaining dues from the company.

You may first send a diplomatic email for the records, just in case this situation escalates into a controversy or, worse still, becomes a legal dispute. It should be evident that you made all efforts from your end to facilitate a smooth handover but were eventually compelled to issue a notice or communication to the present employer. Hopefully, you will be able to resolve this amicably, as the ex-employee might be concerned that the former employer might not pay him once the handover is complete. Have there been any similar issues in the past? Ensure that in your efforts to solve the problem, you do not damage the company's reputation by being overly aggressive.

Yes, I agree with the opinion stated above.

Manager's Responsibility During Employee Resignation

When that employee resigned, the manager should have ensured that he properly handed over everything. Moreover, the manager should have contacted you (HR) if something was incomplete before his relieving procedure. The employee served his notice period, has been issued a relieving letter, experience letter, and Full and Final (F&F) settlement is completed. That shows he has fulfilled his responsibilities well—at least in terms of documentation.

Involving HR in the Handover Process

Learning from this experience, inform all the Heads of Departments (HODs) to involve HR in the process of handing over responsibilities. They should address any issues before the employee's departure and not raise them afterwards.

Communicating with the Employee's New Company

Sending an email to the employee's new company will not achieve the desired outcome, as there are no documented facts or agreements between the manager and the employee. The employee could easily deny any allegations by stating that his previous company is causing trouble without cause.

Regarding Incentives

Regarding incentives, you make a valid point. If the rules specify a one-year completion period, the employee cannot claim the incentive in any circumstances.

As a second thought, if it is something that none other than the ex-employee can do—what he had promised to his manager—why don't you speak to the employee first? Have you tried speaking to him, and did he deny your request? I am not sure if it happened. Remind him of his words and ask him to visit one day for the remaining charge handover in good faith. Have a friendly approach initially, inquire about him, his current work, etc. If he is sincere, he shall fulfill his promise.

It shouldn't be that you all are imagining a fight about something that was easily achievable with a request. Give it a try. Use your HR skills.

Dear Ankita, the root cause of the problem is the manager's incomplete job. More than the exited employee, his manager is responsible. He should have been thoughtful enough to allow his subordinate to quit without a complete handover. The verbal agreement that the manager had with the subordinate holds no ground. He should have been considerate of the consequences if his subordinate turns unfriendly. I recommend that you take action against the manager for doing incomplete work. This is a failure of management.

Anyway, you may tide over the current challenge. Nevertheless, hereafter, you need to obtain two undertakings. One is from the HOD/Reporting Manager, stating that the exiting employee has completely handed over their duties and nothing is left. The second undertaking is from the exiting employee, ensuring proper responses to the queries raised by the employees working in his department.

Thanks,

Dinesh Divekar