Employee Left Abruptly: How Can We Address Financial Losses and Reputation Damage?

One of our employees was working for the last 10 months. She submitted her resignation 2 weeks ago. Her offer letter states that she must serve a minimum of 1 year with us, and company policy requires a 2-month notice period. Today, she did not inform anyone, left all the WhatsApp groups, and did not come to the office. She sent a message on WhatsApp to our HR stating that she will not be continuing.

Being in client servicing, her sudden departure has caused significant damage to our reputation and disruption in our work. We may lose one of our monthly retention clients due to her behavior. To mitigate the situation, we are urgently hiring through a staffing agency and will incur a cost of 8.33% (equivalent to one month's salary) due to this desperate hire.

Regarding the actions to be taken against her:

1. For the financial losses resulting from losing a client.
2. For the financial loss incurred by paying the staffing agency due to her sudden departure.
3. For the reputation damage in front of the clients she was handling.
4. For not serving the 2 months' notice period as stated in the offer letter.

I am considering sending her a legal notice to claim the monetary losses we have suffered due to the reasons mentioned above and requesting her to compensate. It is important to address these issues to set the right tone in the workplace and prevent others from taking similar actions. Your advice on this matter would be appreciated.

Hi Dhiraj, It's important to consult with a legal professional to get advice tailored to your specific situation and jurisdiction.

Review Employment Contract:

Start by reviewing the employment contract and company policies to ensure that you have a clear understanding of the terms and conditions regarding notice periods, consequences of breaching the contract, and any clauses related to financial liabilities.

Consult Legal Counsel:

Given the complexity of the situation, it's advisable to consult with a lawyer well-versed in labor laws and employment terms who can provide guidance based on the specific employment laws in your jurisdiction. They can help you assess the strength of your case and advise on the best course of action.

Document the Damages:

Document the financial losses incurred as a result of her abrupt departure. This may include the costs associated with hiring a staffing agency, potential loss of clients, and any other quantifiable damages.

Communicate with the Former Employee:

Before sending a legal notice, consider communicating with the former employee to discuss the situation and attempt to reach a resolution. This may involve a formal meeting or written communication where you outline the specific damages and request compensation.

Legal Notice:

If communication does not yield a satisfactory resolution, you may choose to send a legal notice outlining the damages incurred and the intention to seek compensation. Ensure that the notice is drafted by a legal professional to maximize its effectiveness.

Small Cause Court or Legal Action:

Depending on the amount of damages, you may consider pursuing legal action through small claims court or other appropriate legal avenues. Again, legal advice is crucial in determining the most appropriate course of action.

Internal Policies:

Review and update your internal policies to address situations like this in the future. This may involve strengthening contractual clauses, implementing stricter exit procedures, or considering alternative measures to mitigate potential damages.

To be specific, legal proceedings can be time-consuming and costly, so it's important to weigh the potential benefits against the risks. Consult with a legal professional to ensure that any actions you take are in compliance with applicable laws and regulations.

Thanks,

Hi, The failure on the part of the employee to serve the proper 2-month notice period is wrong. However, in the absence of any agreement or bond signed and agreed upon by both parties with proper justification for a one-year compulsory service requirement, a legal claim cannot be made solely based on the terms of the offer letter. Also, it is very strange to note that you are referring to financial loss to the company when her tenure with your company was only 10 months. Even if she was handling such a crucial role, there should have been someone else handling similar responsibilities as a backup.

The employer has every right to initiate disciplinary action and demand a legal claim for the loss incurred. However, as this is a civil suit, it would be a time-consuming process, and the results may not be fruitful. Nowadays, all employers are facing the issue of employees leaving without notice.