F&F recovery - employee resigned & left immediately without serving the notice period

Hi friends,

One of our employees resigned and left immediately without serving the notice period. Now there is a recovery against him. We have sent him an intimation letter, but he has not responded. What is the next step that can be taken? Shall we send a few more reminder letters?

Dear Colleague,

In such a situation, kindly send one or two reminders to the employee in question. If there is still no response, consider sending a legal notice through an advocate from your organization, especially if the receivable amount is substantial.

Another option is to withhold the experience certificate and include in the relieving order that the employee has outstanding payments to the extent of Rs............. clearly stated.

When BVG information is requested by any agency, make sure to provide this information as well.

If there is continued non-response, then the case can be escalated to filing for recovery, with guidance from legal advocates. It may involve filing two suits, one for breach of the contract terms agreed upon during appointment and the other for recovery. This process can be lengthy, but the organization needs to assess the financial outstanding balance versus the cost of litigation.

These are some possible steps to take.

Thank you so much, Dr. Siva, for the detailed explanation. This is very helpful.

Rgds,
Monika