How to Handle Immediate Resignation Due to Distance: Compensation and Precaution Tips Needed

Dear Members,

I am seeking your advice on a recent incident.

We had offered a Safety Officer position to a candidate with one year of experience. He accepted the offer, which included:

- A ₹21,000/- salary per month
- ₹4,000/- as food charges (since accommodation and meals are provided at the site)

The candidate joined the site for one day, specifically on May 27, 2025, but did not return the next day. He called me to request travel reimbursement, which was not part of the offer. When I contacted him to inquire about his absence, he stated that the site was too far from his home. He also expressed his unwillingness to live on-site, which makes the ₹4,000 food charge redundant. Subsequently, he sent an email stating his decision to discontinue his services.

Questions and Concerns:

We would like to know:

- Is there any formal action we can take, given that he joined and then promptly resigned?
- How should we manage the salary, food charge, and travel reimbursement in such instances?
- What precautionary measures can we implement to prevent similar situations in the future?

Your input and suggestions are highly appreciated.

Thanks,
Niyati

In this situation, it's essential to handle the compensation and future precautions carefully. Here are some steps to consider:

1. Formal Action:
- Review the employment contract and relevant labor laws to determine if any legal actions can be taken due to the immediate resignation after joining.

2. Compensation Management:
- Deduct the salary for the one day worked and adjust the food charges accordingly since the employee did not complete the agreed-upon terms.
- As travel reimbursement was not part of the offer, it is not mandatory to provide it unless specified in writing.

3. Precautionary Measures:
- Clearly communicate all terms and conditions of employment, including the location, on-site requirements, and any associated charges before finalizing the offer.
- Consider including a probationary period clause in the contract to allow both parties to assess the fit before committing long-term.
- Conduct thorough interviews to ensure candidates understand and are willing to comply with job requirements and conditions.

By following these steps and implementing preventive measures, you can mitigate the risk of similar incidents in the future.

When an employee attends to their duties for just one day and then abandons the job, it results in a significant loss to the organization. In such cases, the recruitment efforts go in vain. However, I wish to put forth the following points to analyze the case:

- While selecting the candidate, the factors considered were probably his job suitability, experience, etc. However, a crucial factor left out was the distance he is required to travel every day from his home to the site and back. Neither the employer nor the candidate considered this important factor.

- On the very first day, the candidate discovered that he would be required to spend a lot of time commuting and would incur significant transportation costs. Hence, he demanded additional transportation charges, but it was a too-late discovery.

- Otherwise, there could be another possibility. When the candidate attended the interview, he did not have an alternate offer at hand. Possibly, during the intervening period, he received another offer. However, he wanted to test the working conditions of both jobs. To assess the situation, he attended duties for just a day at your site. Upon weighing options, he realized the other offer was better, therefore, he relinquished yours. He knew well that your company would not accept the payment of extra money than agreed. Hence, this ploy of the long time taken to travel from home to the site and back.

- On the very first day of his job at the site, did he witness the arrogant superiority of some higher authority? Was he the target of someone's disdain? There is a possibility of developing a negative opinion on the very first day. Try to find out what happened at the site on his first day, or how he spent his first day.

- On the first day of his employment, did you issue him the appointment letter? If yes, then what does the separation clause say? What is the notice period? If he has accepted the appointment letter, then he is bound by the terms and conditions of the appointment. For failing to oblige those, you can file a suit against him. However, if your company has not issued the appointment letter, the employer-employee relationship or the employment contract is not established. Without this relationship or the contract, your company does not have grounds to take legal action.

Lessons Learned

Not all recruitments succeed, and this is an example of failure. To avoid repetition of such failures, include location suitability as one of the selection criteria. Introduce a practice of conducting interviews at the site where the candidate is expected to work. Generally, after the final selection, the candidate is issued an offer letter. Once the candidate joins the duties, they are issued an appointment letter. Rather than following this practice, start issuing the appointment letter directly. This will ensure that the conditions of employment are enforceable from the very first day of employment.

Question to the Members of this Forum

The employee has abandoned their duties just after a day, and the member has raised a query on how to handle the situation. However, there is an opposite side to everything. Imagine a situation where the selected candidate comes to this forum and asks for advice on getting terminated from his duties right on the first day of his employment. What would be your advice?

Thanks,

Dinesh Divekar

Dinesh's response provides an in-depth analysis of what could have potentially gone wrong in your case. The main issue seems to be a lack of clear communication and agreement on the terms of employment, particularly concerning travel and accommodation. Here's my take on your questions:

1. Formal Action: If the employee signed an agreement or contract with a notice period clause, and they failed to adhere to it, you may have a legal case. However, consider the costs and benefits of this. It may be more productive to focus on improving your hiring process to avoid future issues.

2. Salary and Charges Management: For the day he worked, you should pay him his due salary. However, the food charge is redundant as he didn't avail the services. As for the travel reimbursement, if it was not part of the original agreement, you're not obligated to provide it.

3. Precautionary Measures: Here are some steps you can take:
- In future interviews, discuss the job location and travel requirements openly. Ensure the candidate is comfortable with these conditions before making an offer.
- Consider providing a clear written job offer outlining all terms of employment, including salary, benefits, and expectations about accommodation and travel. Have the candidate sign this offer to show their agreement.
- If the job requires living on-site or extensive travel, make this clear in the job posting to attract only those comfortable with these conditions.

Lastly, it might be worth conducting an exit interview with this employee to understand his reasons for leaving. His feedback could be valuable in improving your hiring and onboarding processes. Remember, every setback is a learning opportunity.

Thank you, Dinesh Sir,

Dear Mr. Divekar,

Thank you for your detailed analysis and valuable suggestions regarding the recent case of the employee who abandoned the job after attending for just one day. We would like to clarify a few points in response:

Accommodation at Site:

During the selection process, we had clearly informed the candidate that accommodation is available at the site. Despite this, he insisted on commuting daily, which was his personal choice. The commuting issue, therefore, was not overlooked from our end.

Interview Location Suggestion:

We completely agree with your point about conducting interviews at the actual site. It’s indeed a practical approach to help candidates understand the location and working conditions better. We appreciate this suggestion and will certainly consider implementing it in future recruitment processes.

Contractual Terms:

Regarding Point (e), the candidate was hired on a fixed-term contract. We had issued and shared the contract offer letter well in advance, which he formally accepted. However, despite accepting the offer, he chose not to join us.

This incident is not isolated. We are increasingly observing such behavior from candidates these days, where they accept offers but either don’t join or back out at the last moment without informing the employer. This not only disrupts our planning but also causes operational and financial setbacks.

A few months back, we gave the fixed-term contract letter to another candidate. He emailed the acceptance, and based on this, we even booked his travel to the site. However, he neither joined the assignment nor communicated his decision to us. Later, we came to know that he had joined another company.

Anyways, thank you a lot, sir, for your valuable reply. Please guide us in the future also.

Thanks and regards,
Niyati

For the time being, let us consider that the candidate did not adopt the practices that have gained ground in your industry. You wrote that he was appointed to the position of safety officer. On his first day, he must have checked the safety practices generally and at the site specifically. Did he perceive that the site's prevailing safety culture was misaligned with the safety practices he previously espoused? Did he perceive that during his incumbency, if some mishaps were to happen, his role could come under scrutiny, and he might have to defend the indefensible?

Since the candidate became incommunicado after one day of work, we can do nothing but speculate. However, since you say that selected candidates failing to appear is an industry-wide practice, let me suggest to you the following means to address this issue:

- **Not to mention the salary breakdown in the offer letter.** After the salary negotiations, the candidate is asked to submit an application for the proposed salary. The application is approved, and the offer letter only mentions the approval, not the amount.

- **Lien on education documents until the candidate completes two to three months with the company.** If the candidate quits during the lien period, then the lien period extends to five years. A legal agreement is required to exercise this option.

- **The candidate is told to deposit an amount equivalent to three to five times his/her proposed monthly salary.** The deposited amount is returned with interest along with the first salary. If the candidate fails to join, the amount is forfeited. A legal agreement is required to exercise this option. Exercising this option risks losing a good candidate if he or she is not financially secure enough to pay the amount.

Disclaimer: Please note that I neither subscribe to nor oppose the above practices followed in various industries. I conduct training programmes on various management topics, and I have merely shared information from past participants.

Anyway, thank you for your post and thereafter detailed follow-up message. Not many members clarify what happened in their company. Please continue to raise posts on the issues you face at your workplace or continue to participate in the discussions. Your contributions will enrich the HR community.

Thanks,

Dinesh Divekar

Dear Niyati,

The situation you described is indeed a tricky one, but not uncommon. It's essential to approach such matters with a balance of legal compliance and employee-centric practices.

In your case, since the employee had worked only for a day, he should be compensated for that day. The ₹4,000 food charge should be waived off as he expressed his unwillingness to live on-site. As for the travel reimbursement, if it was not part of the offer, it is not legally binding for you to provide the same. However, you may choose to reimburse him for goodwill.

Here are some preventative measures you might consider implementing:

1. Clear job description: Ensure that the job description clearly mentions the work location and any requirement for relocation or stay on-site.

2. Pre-joining engagement: Engage with the candidate prior to the joining date to understand any potential issues that may lead to such situations.

3. Probation Period: You could consider implementing a probation period. During this period, both parties can assess the fit and suitability without significant financial implications.

4. Legal Agreement: As Dinesh suggested, you may also consider a legal agreement which details the terms and conditions of the employment. This may deter candidates from leaving abruptly.

Please note that the practices suggested by Dinesh, such as lien on educational documents or depositing an amount, are often seen as aggressive and may deter potential candidates. It's important to maintain a balance between protecting the company's interests and not creating an intimidating environment for potential hires.

Finally, it's always good to take legal counsel before implementing any new HR practices to ensure they are within the purview of the labor laws of the country.

I hope this helps. Please continue to engage with the community for any other questions or concerns you have.

Best,
HR Expert

Thank you so much for your detailed and thoughtful response. I really appreciate your insights and suggestions.

I completely agree with your points, especially regarding the importance of clear job descriptions and pre-joining engagement to prevent such situations in the future. The idea of introducing a probation period also seems like a great way to assess the fit for both the employee and the company.

I’ll definitely consider consulting legal counsel before implementing any new practices to ensure we stay within legal boundaries. Your advice on the food charge and travel reimbursement is also helpful, and I’ll make sure we handle that with care and empathy.

Apologies for the delayed reply, and thank you again for your time and support.