Employee Left Without Notice for Family Emergency, Then Joined Another Firm: Should We Withhold Her Experience Letter and Settlement?

Hi! One of our employees resigned without serving notice, citing her mother's critical health as the reason for needing a 4 to 6-month break from work. We granted her request given the circumstances; however, after about 40 days, we discovered that she had joined another company. Now, she is requesting an experience letter and Full and Final settlement (F&F). We believe this was inappropriate on her part, and we are considering withholding the experience letter and F&F as a consequence. What is the general industry practice in such situations? Our appointment letter explicitly states that serving the notice period is mandatory. Although we showed leniency in this case due to what seemed like a genuine reason provided by the employee. Thank you for your insights.

Dear Roshni,

The employee requested a waiver of the notice period due to a family emergency, which the company's administration approved. However, it has come to light that the employee may have misled you. In response, you have withheld her full and final settlement.

I wish your company had been more cautious before approving the waiver. You are now facing the consequences of this decision. On what legal grounds have you withheld her full and final settlement? Which law or act permits this action? It is advisable to pay her salary up to her last working day.

There is a lesson to be learned from this incident. Your company needs to be more circumspect in its administrative decisions. It is crucial to verify facts before making such decisions.

Options for Issuing the Experience Letter

As for the experience letter, you have several options. The first is to issue it without holding a grudge, as retaliation is not productive. The second option is to send her a notice asking for justification for the false grounds for her early exit. If her reasons are unsatisfactory, you can withhold the issuance of the experience letter. The issuance could be contingent upon payments made instead of the uncompleted notice period.

The second option will not only serve as a lesson to her but also to current employees about the consequences of dishonesty.

Thanks
Dinesh Divekar

Hi, Employee is supposed to serve the proper notice period as per the appointment terms. However, to evade serving the notice period, she cited a fake reason and joined another company, which is unethical. At the time of relieving, you could have demanded proper medical proof regarding her mother's illness for verification purposes.

Now, please call the employee and inquire about this matter. A letter should be sent to her stating, "You left without serving the proper notice period, whereas as per your appointment terms, you are required to serve ___ days' notice. You are directed to serve the proper notice period or forfeit the salary in lieu of the same."

If she appears in person, collect a letter from her stating that she is willing to forfeit Rs. ___ from her full and final settlement for the shortfall in the notice period. After collecting the letter, issue her the experience/relieving letter along with the balance Full and Final Settlement (FFS), if any.

Thank you so much for your responses.

To add, she left on the 1st of the month, so her salary was released only for the F&F of leave encashment, and the bonus is pending.

We had taken medical records as proof of her ailing mother. However, it was just a pretext under which she wants to resign and be relieved on the spot.

Is it a good idea to put this in an email that the experience letter will be withheld since notice is not served?

Hi, you can email stating that "you had left the organization without serving a proper notice period, quoting false reasons. Now you are hereby advised to contact us in person to complete your relieving process."

"Is it a good idea to put this in an email that the experience letter will be withheld since notice is not served?" No, it is not a good idea at all. Keep the discussion oral when she reports to the office. At times, such threatening email communication may bounce back against your company.

You can think of other options if you are not taking appropriate action as per your policy. In any case, it is indiscipline if the 'notice period' is not served. If you are serious, you can as well issue a statement of fact in the letter.

Did you issue any relieving order? If you had let her go without the relieving letter, then you are at liberty to deduct the amount in lieu of notice from the receivable as F&F.

There is nothing wrong in withholding F&F, provided the company did it without communication on the subject. Anything that can be done in a logical manner is fair practice. The general industrial practice is to follow the set rules and to act as per the company's guidebook. You have violated by compromising the clause of the Notice Period, where the appointment letter clearly states that serving the notice period is mandatory. It would have been genuine if you let her go as per the clause of the exit.

Sir/Madam,

Release all her dues. Send her a relieving letter mentioning, "As you orally indicated that your mother is sick and you are unable to work further, the company, taking a lenient view, exempts your notice period and relieves you at your request on the dated: -."

Best Wishes!