Employee Never Started Work but Faces Legal Threats Over Settlement Dues – What Should They Do?

Hi, An employee absconded from an IT firm just after documentation, informing HR that he wouldn't be able to continue joining due to some reasons. He received multiple show-cause notices for absenteeism, and the employee replied with an email to HR stating that he had already informed HR about not joining the company. After 6 months, the employee received a termination letter. Two months after the date of the termination letter, the company sent a settlement of dues amounting to a 5-digit figure and is threatening to file a legal case.

What should the employee do in this scenario?

Note:
- The employee didn't even collect his ID card.
- Informed HR about not continuing to join the company.
- Didn't receive any salary/PF or any monetary benefits.

Thank you.

Hi, As part of disciplinary proceedings, to close the file, HR might have served those letters. Even if the employee signed a service agreement/bond/training agreement, there will not be any legality as he was not part of the company, not even for one day. However, if any security checks were issued, they need to be handled carefully.

Handling Security Cheques in Service Agreements

As part of a service agreement or training agreement, companies often collect undated security cheques, signed in favor of the company, with a condition to deposit the cheque in the bank in case of a violation of the terms and conditions by the employee before the completion of the bond period. If such cheques are deposited and then bounce, companies can file a criminal case for cheque bounce, which needs to be handled carefully. However, even if the cheque is submitted, I don't think the employer will deposit it since there was no service period involved, and the employee left immediately after joining.

When the appointee has not joined the organization at all, how can the employer assume disciplinary control over him and issue termination orders?

It would be better if the poster simply ignores the legal notice or sends a suitable reply setting forth that the organization has no locus standi to issue such a notice.