How Should We Handle an Employee's Unserved Notice Period and Suspected Theft?

Dear HR, consultants, and legal advisors,

I have recently joined a company, and the owner of the company shared with me that one of our employees committed fraud by purchasing IT equipment from a vendor for personal use, despite the company not needing the items. Upon discovering this, we obtained a signed legal document (affidavit) from the employee admitting guilt and agreeing to repay the vendor. We offered the employee a second chance to rectify the situation.

The following day, the employee disappeared for three days, during which time we discovered that some IT equipment worth 20k to 25k was missing from the office. While we have no concrete proof, we suspect the employee, as the missing items were under his control. He served as the system administrator responsible for IT-related matters in the company. On the fourth day, the employee submitted his resignation via email (27/06/2019). The owner instructed HR to verify the employee's notice period and handle the resignation formalities. Due to the previous HR's oversight, no absconding letter or show-cause notice was issued when the employee went missing. The HR department emphasized the missing IT equipment and reminded the employee of his two-month notice period as per the employment contract, solely through email without sending a formal letter. Although the employee claimed he would serve the notice period, he failed to do so, citing personal reasons without providing medical documentation.

Approaching the end of the two-month notice period on 26th Aug'19, the employee is requesting the release of his salary and certain bonuses without completing the notice period.

I have a plan to proceed with a show-cause notice regarding the failure to serve the notice period, but I seek input from senior management to ensure fairness for both the employee and the employer.

Employee's outstanding issues towards the employer:

1) Suspected theft of 20-25k (unsubstantiated)
2) Unfulfilled notice period of 2 months, amounting to 40k

Employer's outstanding dues to the employee:

Salary of 10000 + variable pay of 16000

I would appreciate your suggestions on how to address this situation.

Thanks & Regards,

Abhinav Sidana

Your predecessor (HR) should have followed the proper disciplinary process for unauthorized absence and for missing IT material which was in his custody. Though two months have passed, it is now better for you to start the process of serving a warning letter through RPAD, referring to the previous email correspondences. Ask him for an explanation for the prolonged absence without proper justification and also regarding the missing IT material. Advise him to report to the office to fulfill the exit process. Since months have passed and IT materials are also missing, it may not be prudent to allow him inside the office. If he returns, check about the whereabouts of the missing materials and inform him that if he is unable to justify the presence of the IT materials, the cost of the same will be recovered from his FFS. Collect a self-declaration from him for the same, and then either he can be relieved or terminated as per your company norms. Leaving this case open-ended will not be good.

Thank you for your inputs; I really appreciate what you said. I have a few questions:

1) Can we issue him a warning cum show cause notice altogether for what he did?

2) The employee said he was not well (no medical certificates shared by him), which is why he was unable to tender the notice period. In case he managed to obtain a medical certificate for the illness he claimed to have had during the time he was supposed to serve the notice period, can he exempt himself from serving the notice period as per the employment act?

I am waiting for the reply. Thanks in advance.

Regards, Abhinav

Processing the Warning Letter

Please process the warning letter first as stated in my previous post. Draft it professionally and include information about the missing articles that were in his custody. Also, mention that the Company reserves the right to lodge a police complaint if he fails to respond regarding the missing articles.

Medical Certificate for Illness

Regarding the medical certificate for illness, a mere certificate from the doctor will not be sufficient. The seriousness of the illness needs to be determined. Unless he is completely bedridden or paralyzed, he can still serve the notice period after being sick. If he claims to be sick, inform him that the Company will appoint a Panel Doctor for an examination, and he should appear before the Panel Doctor (even though this may not actually happen - it is to reveal the truth).

Thank you.

You send a lawyer notice to claim against the materials and the notice period amount to settle within 7 days. Otherwise, management will register an FIR for absconding from the office by stealing office materials.