How Should Employers Handle Sudden Resignations Without Notice or Handover?

Dear Seniors,

When an employee, who is part of the company's payroll and registered with EPF and ESIC, unexpectedly resigns without adhering to the notice period of 90 to 120 days outlined in their appointment letter and does not conduct a proper handover, the employer may encounter a situation where the employee seeks payment for 8 to 10 days of salary after a period of 90 days. What actions should the employer take in this case?

Regards,
Sidharth

Understanding Notice Periods for Low-Paid Workers

This employee, as he is covered by the ESI Act and earns wages below Rs. 21,000, seems to be a workman under the scope of the Industrial Disputes Act. How can you make a contract with such a low-paid, low-level worker with a notice period of 90 to 120 days?

You should know that for a workman, no notice period applies, whereas the employer is legally obligated to give notice—one month for establishments employing fewer than 100 persons and three months for 'factories' employing more than 100 workers. Therefore, you cannot ask an employee to serve notice before he leaves and forfeit his salary. If he is asking for wages for the days he has already worked, you should pay it. Otherwise, he may approach the concerned officer, and once he visits your office, he may find numerous non-compliances. This could lead to unpleasant situations. Therefore, I advise you to pay the amount and close the matter.