Consultant Quit Without Notice: Can We Deduct 10 Days' Pay for Notice Recovery?

Dear Team, We hired a consultant who worked for 1 month and 10 days. As per the salary cycle, he received the consultant fee for that one month as the first month's salary. However, he resigned and requested immediate relieving on the 10th day of the 2nd month and quit without a notice period. Ideally, his 10 days' pay is still pending.

Consulting Agreement Terms
As per the consulting agreement, the notice period is 1 month.

Questions for Consideration
1. Can we adjust the 10 days' pay as notice recovery?
2. Should we pay him the remaining salary as the full and final settlement amount?

Any other suggestions, please provide.

Regards

It appears from the post that the person is engaged as a normal employee, but to avoid compliance with PF, ESIC, Bonus, Gratuity, etc., he has been designated as a Consultant.

Role of a Consultant

A Consultant is not supposed to do daily routine work and should not have service conditions like other employees. Usually, consultants do not report on a regular basis like employees. Consultants, in general, are specialists.

Therefore, the person should not be treated as a normal employee, as mentioned in the post. This is a trend for many organizations to engage people as Consultants to do routine jobs, which, in my opinion, is not the right process to engage people.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To Strive towards excellence with effort and integrity

Hi, As per the agreement signed, the consultant is supposed to provide proper notice/information well in advance. Have you discussed with him regarding the notice period, or is he aware that he needs to provide proper notice? Not sure. In such cases, wherever possible, try to discuss with the concerned individual about the requirement. If they are keen on being relieved, obtain a self-declaration letter stating that he/she wants to be relieved and is not willing to provide the notice period, along with their consent to adjust/forfeit the balance payable towards the shortfall in the notice period.

I want to say on the discussed topic that if he requested immediate relief in writing, and you accepted it, then recovering the notice period is unjust. Because you accepted his request, you are giving consent to him as per his request. You have to check the communication between both (consultant and management). Giving notice as per the agreement is the liability of the employee/consultant, but it is in the hands of management to relieve him before the notice period without notice pay recovery. It depends on the relationship and loyalty between both.

@vlakshminarayanan, thank you for the response. Yes, everything about the notice period is informed well in advance, especially on the day of joining. It is also mentioned in the agreement.

Hi, Okay, then it is a breach of contract on the consultant's part. You can communicate with him via RPAD, stating:

"As per the terms and conditions of the Consultancy Agreement, you are supposed to give 30 days' notice. However, you submitted your resignation and left on ___, thereby violating the terms and conditions of the Consultancy Agreement. You are hereby directed to report to the office and complete the remaining notice period on or before ___. Failure to do so will be deemed as your lack of interest in completing the notice period, and we will be forced to terminate the Consultancy Agreement dated ____ by the close of business on ___. Any outstanding retainer fee payable to you will be adjusted against your notice shortfall.

Please acknowledge the receipt of this communication."

Wait for his response; if there is no reply, send an official termination letter and close the file.