Employee relieved early by fake reason and company considered her as absconded

Hello Everyone!!

Recently, one of our employees resigned and requested early release on the grounds that she is the only daughter looking after her sick mother. We accepted her resignation verbally, giving her Last Working Day (LWD) as 7th March. However, we received the Background Verification (BGV) report two days after she left the company.

Can the company take action for a fake reason?

In this situation, can the company take any action against her for providing a fake reason to be relieved? When discussing this with the employee, she mentioned that she was not aware she would be selected by another company and was completely unaware of the BGV process.

Management's decision and employee's response

The management has now deemed her as absconded due to the alleged fake reason, but she is not willing to accept it. Could you please suggest how to handle this case?

Hi, The employee was officially relieved based on her request, whether genuine or fake. After the employee was properly relieved, how did the employer interpret her departure as leaving without information? This is unfair. You may choose not to consider her for re-employment, which is the maximum you can do, or in the worst case, you may mention the facts in the background verification (BGV) process, but I wouldn't suggest it.

I fully agree with Lakshmi Narayan; the company should not have pursued a background verification. If an employee has a reason to leave your organization, then let her leave. You are not a detective to determine whether there was a genuine reason for her departure. You should have acted in good faith. After relieving her, how can you declare that she is absconding? Do you know the actual meaning of absconding? If she has been absent without leave and has not been responding to your calls or letters, you can declare her as having left the job or use the word "abandoned" the employment. But you cannot use "absconding." She can very well challenge this remark, saying that the term used by you has caused stigma. Again, HR can conduct background verification to determine whether an employee joining is a fit for you, but you are not a detective investigating any criminal background.

Hi Mate, Thanks for your response! The employee had not been provided with any mail confirmation mentioning her Last Working Day (LWD). Even though there was a significant need for her support within the team, taking into account her personal circumstances supporting her parents, the company agreed to release her early without requiring her to serve a notice period, as she consistently expressed her desire to be relieved. Furthermore, the company received her Background Verification (BGV) for another company immediately after her last day.

Based on this, the company has requested her to complete the notice period, which the employee was not willing to do.

Hi Madhu, Thanks for your suggestion! I just have one concern. When a company decides to terminate an employee based on a false reason to join another company, is that not illegal? If the company finds out about this through background verification, where the employee has informed the new company that they left for a better opportunity, can the company not state that the reason is invalid and provide the actual reason?

Please suggest what is best for me to do in this scenario as an HR professional, as I have to address both management and the employee.

Ms. Pramila, it is true that her presence was very much required, but you decided to relieve her. It may also be true that she should have opted for another opportunity because the other opportunity would give her more access to her parents and allow her to take care of them. Now, when you declare that she is 'absconding', or rather abandoned the job, will you get the work done? She may even go to the Labour department and seek the assistance of the law protecting an employee. A good labour law enforcement officer shall ask just one question, "How can you make an employee stay back once he/she has resigned?" If the Labour officer asks for a copy of the Certified Standing Orders where it is mentioned that an employee of this category should give notice to the company, will you be able to provide it? Please remember that there is nothing under any Labour law that mandates an employee to serve notice. All that you can do is spoil the career of an employee by putting negative remarks on the background verification. By doing so, what is your gain? If an employee is not interested in working with you, let them go.

Hi Madhu, I think you have misunderstood my concern. I mentioned that we received a BGV from her joining company immediately after the employee left the organization. We have not sent any BGV from our side.

I think my last post came before I noticed your reply to my first comment. Let me say that employee-employer relationships are mandated by certain laws. No company will be totally compliant with regard to labor laws also. Hence, it is very important that unnecessary situations which may invite the law-enforcing officers to come and verify the records should not be invited.

As I said, when there is no law that says an employee should give notice to leave a company, how can we insist an employee serve notice? I don't know what the required notice is. Even from the employer's side, the notice to terminate an employee is one month. There are companies that have framed provisions that an employee should give three months' notice! That is illegal. Yes, if you have standing orders certified by the appropriate authority, in which it is mentioned that notice is required to be given, then it is binding. I don't think that you have a standing order. In respect of managers also, your stand is right. But an employee who has no reportee under him/her is only a workman even though he is getting lakhs of rupees as salary and he has a fancy designation like manager/Sr. Manager.

Coming to the situation, I would say that the employee has already decided to leave. No employee will give the right reason for leaving, I would say. It shall be a better opportunity, a better place of work, access to family, and many reasons. In short, the reason would be simply: she does not want to work with us. Then leave her. Why should we go behind her? What is the gain that we get from going behind her? Nothing.

Pramila,

I can understand that HR and management feel cheated if an employee leaves giving false reasons, but such are the ways of the world. The only thing in your control is if the appointment letter has a clause regarding the notice period or salary in lieu thereof. If you have not issued a release letter specifically mentioning that her notice period has been waived off, then you can deduct the short notice period salary from her final settlement. If the settlement has already been completed, you can send an email asking her to pay for the short notice period. If the BGV report includes a section that asks for the reason for leaving, you can mention the reason she provided. I do not see any harm in telling the truth. Just as we have a responsibility towards our ex-employees, we also have a responsibility towards our colleagues in the HR fraternity.

Employee Release and Notice Period

When an employee is officially relieved based on her request and with the employer's consent, there should be no question regarding the notice period if it was not served as per her appointment order. This can be recovered from her Full and Final (FNF) settlement.

Before making any deductions, please ensure that the condition has been mentioned in her appointment order.

However, you should not consider her as absconded in this case.