Employee Absconds with Company Laptop: Is This Termination or Normal Relieving?

On 7th Feb 2020, we terminated one of our employees due to his non-performance. That day was his review day, but he did not show up. Consequently, management sent him an email stating that his employment with the organization ended on 7th Feb 2020 and requested him to return all company assets and data.

However, the employee did not comply and absconded with a company laptop. I would like to understand if this situation falls under termination or normal relieving. If it is considered termination, how should we proceed with the termination letter regarding non-performance or absconding?

Thank you.

First thing is he is still holding company assets.
Employees have to be warned of the consequences of not returning company assets.
Termination will be for two main reasons when orders for dealing with the case are given by a competent authority.
On records, he is absconding, showing poor performance, and now not returning company assets.

Can I provide a relieving letter in case of termination?

Certainly, you can provide a relieving letter to an employee in the case of termination. A relieving letter is a formal document issued by the employer to certify the employee's resignation or termination from their position. It typically includes details such as the employee's last working day, conduct during employment, and any other relevant information. Providing a relieving letter can help the employee in their future job prospects and serve as a professional reference. It is important to ensure that the content of the relieving letter is accurate and reflects the circumstances of the employee's departure.

Please write a strong letter addressing the issue of the company property that the individual is holding without returning. This may include not only the laptop but also the mobile phone, files, and important documents. Obtain the details in writing promptly from the relevant department where he was employed and send a letter via speed post. If he fails to respond, consider sending a legal notice, which you can discuss with the company's advocate.

I think rather than defining whether it was termination or relieving, the most priority action is to get the company's belongings from the employee. Mr. Balasubramanian has already guided you on the course of action. It is advisable to follow it now.

Termination of Services

The termination of services of an employee, unless in writing, is not legally tenable.

Handling Absconding Employees

Regarding the act of absconding by the employee, you need to write a detailed letter explaining the non-return of the company's properties, including a laptop, and require him to return the properties within a certain time frame. If he does not respond to your letter, send one more reminder letter. If there is still no response from the employee, send another reminder letter. Even if the second reminder does not elicit any reply, you can lodge a police complaint and follow the necessary procedures. In the meantime, you can withhold his full and final settlement. If any gratuity is due to him, the same may be deposited with the controlling authority under the Payment of Gratuity Act to ensure that you are on the safer side, as gratuity cannot be attached by any court of law.

Legal Considerations

However, if the termination is challenged by the employee at any appropriate legal forum, you are answerable as the employee has not been served with a formal termination notice. It is also essential to know whether you gave the employee an opportunity to explain his non-performance as per the principles of natural justice.

Regards, Panchsen

P. Senthilkumar

Former Corporate Head - Industrial Relations, MRF Ltd

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