Employee Resignation Over Salary Deductions: How Should HR Handle This Complex Situation?

Hello connections, I want your help on the situation below. One of our employees has sent us a resignation due to salary deductions. However, he has consistently failed to log in to the attendance portal despite multiple reminders. We have informed him that we will take attendance data as per the HRMS portal.

He is now stating that if he does not receive his salary, he will leave the organization. Additionally, he has refused to accept the appointment letter citing non-acceptance of the HR policy (regarding late coming) and the management policy.

On the other hand, my Managing Director wants me to convince him to stay as he is performance-oriented. As an HR professional, he has also shown disrespect towards me. Are there any legal actions we can take in this situation?

Your kind suggestions are highly appreciated.

Addressing Attendance Issues with the Managing Director

Please diplomatically convey to your MD the following:

His recorded late arrivals and casual avoidance of basic organizational rules can have a disastrous effect. Signing/logging attendance is a basic duty, and his logging times are linked with payroll. Repeated exclusions cannot be made for anyone as it sets an example and precedent.

No matter how good a performer he is, he cannot be above company rules.

Show him the documented failure to log attendance.

If your MD insists, call the team leader along with this employee, counsel him, make a record of the discussion, and get his signature.

In the circumstances, ignore his disrespectful attitude unless the disrespect is physical or abusive. Mere refusal to sign in, etc., will not make it abusive.

Make an attempt since your MD is telling you in the presence of his team leader/manager, etc., and report to the MD the result of the discussion; let him make a decision.

But this employee would set a bad example, and others may quote him, placing HR and organizational discipline in a bad light.

Play a firm but balanced role in this matter.

Let ego not come in; rather, stick to documents, the effect of individual behavior impacting overall discipline, and let the MD make a decision. After all, they have more to lose, and they will be more careful after seeing records.