Can We Deduct Salary or Recover Damages After Losing a Project Due to Employee's Unnotified Leave?

Hi,

We have terminated one of the employees due to not formally intimating us about his leave. Subsequently, we lost a project that was in the middle stage, resulting in significant damage.

We have his 10 days of salary. Can we deduct the salary, or can we recover the damages that occurred to the company? Could you please provide information on the process for recovering the damages? We have also sent a formal email regarding his termination.

Thank you.

Dear,

Do you have proper documents for his negligence resulting in the company's loss? Conduct an inquiry for this, then proceed further. (Follow the principle of natural justice)

Addressing Employee Negligence and Recovery Process

I am writing to inform you that a case of pure negligence has resulted in significant damage to the company. Based on the current situation, it appears that the employee holds a high-ranking position, and the success of the project is dependent on their performance. The initial step involves conducting a domestic inquiry to identify the root cause of the issue. It is vital to ascertain why the employee failed to communicate their absences to their superior and how they could leave the project without obtaining proper leave approvals.

Following the inquiry, you should proceed by issuing a show-cause notice as the first letter, followed by an explanation letter as the second communication, and the final letter should be a termination notice. Please ensure that all letters are sent via Registered AD to the employee's permanent address and also forwarded through email. It is crucial to maintain detailed records for future reference.

Kindly note that any recovery from the employee's PF or other social welfare schemes is not permissible. If the employee refuses to compensate for the damages, legal action in the form of a civil suit can be pursued at a later stage.

Best Regards,
Pramit K. Singh
IR Professional

Dear Harikirshna, The employee was on unauthorized leave. What was the duration of absence? How many employees were involved in the project? What was the designation, role, or responsibility of the absent person? Why did his absence matter so much that it caused your company to lose the project? Did your company fail to visualize risks arising from the absence of this person, leading to blame being placed on the employee?

Before sending a "formal" email regarding the employee's termination, did you conduct a domestic enquiry? If not, why? Any termination must be preceded by a domestic enquiry. If the employee were to approach the labor office or challenge the decision judicially, what is your legal defense?

There are many questions associated with your post. There is more than meets the eye. Please provide us with a complete picture.

Thanks,

Dinesh Divekar

You have not provided complete information, so it is not possible to advise appropriately on such a sensitive issue. Please come clean and provide total information.

Your query is pointing to the inadequacy of the company to manage the project. Have you inquired from the employee as to what compelled him to take sudden unauthorized leave? Please note that if the absence is because of some valid and sound reason, you will lose the case in court if the employee challenges his termination.

No, you cannot recover damages from the employee if it is not part of the contract of employment, even if you have lost the project midway.

Warm Regards,
Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]

The termination is illegal. The person should initiate a case against your establishment for his illegal termination as the proper procedure was not followed. Your allegation of losing the project and incurring a loss is not sound or tenable. How can a single person be responsible for the entire project? Where is the issue to recover damages when the person has already been terminated from the services?