Hi all,
In my company, an Accounts Executive sent her resignation letter by email detailing what all is pending, etc. She has been working for more than a year, but we have not confirmed her employment. She has taken her salary as an advance before sending the email to us.
My doubt is whether we can take action against her and what steps we have to take.
Regards,
Kantha 🌀
From India, Madras
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In my company, an Accounts Executive sent her resignation letter by email detailing what all is pending, etc. She has been working for more than a year, but we have not confirmed her employment. She has taken her salary as an advance before sending the email to us.
My doubt is whether we can take action against her and what steps we have to take.
Regards,
Kantha 🌀
From India, Madras
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Dear Kantha,
The employee has already taken her salary as an advance. Now the only thing you can hold back is her relieving and experience letter; that's it. I'm sure she won't come back to you for any kind of clearance from the company and would be least bothered about the documents too. Such people are not interested in the experience proof documents.
With regards to the PF amount, you cannot hold it back. The only suggestion would be 'Be careful next time' when someone asks for a salary advance.
If you want to take action against her, that depends on the company policies if you accept her resignation through personal emails or not. Else you can term the employee's status as absconding and terminate her services.
Regards, Aditi
From India, Mumbai
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The employee has already taken her salary as an advance. Now the only thing you can hold back is her relieving and experience letter; that's it. I'm sure she won't come back to you for any kind of clearance from the company and would be least bothered about the documents too. Such people are not interested in the experience proof documents.
With regards to the PF amount, you cannot hold it back. The only suggestion would be 'Be careful next time' when someone asks for a salary advance.
If you want to take action against her, that depends on the company policies if you accept her resignation through personal emails or not. Else you can term the employee's status as absconding and terminate her services.
Regards, Aditi
From India, Mumbai
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Hi Kantha,
Next time onwards when you are giving a loan, please make sure to take two surety signatures inside the company. In case any employee fails to pay money, we can recover that amount from the surety persons.
Regards, P.S. Phani
From India, Bangalore
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1Next time onwards when you are giving a loan, please make sure to take two surety signatures inside the company. In case any employee fails to pay money, we can recover that amount from the surety persons.
Regards, P.S. Phani
From India, Bangalore
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Dear Kantha,
Now, you may also set a trend that the company will not provide advances in all cases. If someone truly needs money, then you should have that person write on paper with two personal references stating, "The money will be returned to the company," or the company reserves the right to withhold the relieving and experience letter.
When an individual comes for clearance, you may require them to either provide one month's notice to the company (work with us for 30 days) before obtaining their documents or repay the money. Alternatively, the company may choose to withhold the papers (relieving and experience letter).
Regards,
Abhilasha Wilfred
From India, Gurgaon
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Now, you may also set a trend that the company will not provide advances in all cases. If someone truly needs money, then you should have that person write on paper with two personal references stating, "The money will be returned to the company," or the company reserves the right to withhold the relieving and experience letter.
When an individual comes for clearance, you may require them to either provide one month's notice to the company (work with us for 30 days) before obtaining their documents or repay the money. Alternatively, the company may choose to withhold the papers (relieving and experience letter).
Regards,
Abhilasha Wilfred
From India, Gurgaon
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Hi,
An unfortunate event, but nevertheless, a trend that's on the rise.
I feel you need to formulate a policy on advances. Two sureties aside, it will not really help as after the first case, there probably will not be anyone who would give a surety. Secondly, recovery from a surety is another painful exercise, even if they are employees, as it creates a lot of bad blood. Thus, if advances are to be given at all, one option is to pay an advance for the number of days worked. If advance salary is sought on the 10th of a month, give an advance for nine days only. This will also help reduce the number of advances being sought.
She can easily claim her PF. So where does that leave you? A few lessons learned.
A question, why did the company not confirm her? If probation was extended, did you give it in writing to her, giving reasons for the extension? Was any effort by the company made to guide the girl to improve in areas she was weak? Frankly, Kantha, these are reasons why this happens. If the company can cater to the basic issues and make the employee feel good, I guess you would not have such cases.
All the best,
Ajay
From India, New Delhi
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An unfortunate event, but nevertheless, a trend that's on the rise.
I feel you need to formulate a policy on advances. Two sureties aside, it will not really help as after the first case, there probably will not be anyone who would give a surety. Secondly, recovery from a surety is another painful exercise, even if they are employees, as it creates a lot of bad blood. Thus, if advances are to be given at all, one option is to pay an advance for the number of days worked. If advance salary is sought on the 10th of a month, give an advance for nine days only. This will also help reduce the number of advances being sought.
She can easily claim her PF. So where does that leave you? A few lessons learned.
A question, why did the company not confirm her? If probation was extended, did you give it in writing to her, giving reasons for the extension? Was any effort by the company made to guide the girl to improve in areas she was weak? Frankly, Kantha, these are reasons why this happens. If the company can cater to the basic issues and make the employee feel good, I guess you would not have such cases.
All the best,
Ajay
From India, New Delhi
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Dear Ajay,
Thank you for the valuable points. In response to your questions:
1. Performance as an accounts executive is not satisfactory. Even regular monthly bills are not being paid properly - all departments have to remember each payment.
2. Despite written warnings, she has not shown improvement.
3. As an HR professional, I am not inclined to let an employee leave the company easily.
4. She was very desperate for an advance due to reasons she shared with me, mentioning "her mother was not well." I made a foolish decision to approve her advance. Sometimes, we have to listen - I believe you will agree with me.
Regards,
Kantha
From India, Madras
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Thank you for the valuable points. In response to your questions:
1. Performance as an accounts executive is not satisfactory. Even regular monthly bills are not being paid properly - all departments have to remember each payment.
2. Despite written warnings, she has not shown improvement.
3. As an HR professional, I am not inclined to let an employee leave the company easily.
4. She was very desperate for an advance due to reasons she shared with me, mentioning "her mother was not well." I made a foolish decision to approve her advance. Sometimes, we have to listen - I believe you will agree with me.
Regards,
Kantha
From India, Madras
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Dear Kantha,
So, you have done your bit. I guess it's easy to speak in hindsight, and as a guy, one is probably less emotionally carried away than a lady. I may have felt bad, but still, I would have refused the advance from the company. If I was convinced that her case was genuine, I may have offered some financial assistance from my pocket (a fool and his money are easily parted) and suffered personally. It's happened in the past and will probably happen in the future, but I would have refused her an advance from the company if rules do not permit.
In any case, she was nowhere near the desired standard and had failed to improve even after warnings. I agree that termination is the last resort. But there are times when hard decisions have to be taken. Tough call, Kantha.
Regards,
Ajay
From India, New Delhi
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So, you have done your bit. I guess it's easy to speak in hindsight, and as a guy, one is probably less emotionally carried away than a lady. I may have felt bad, but still, I would have refused the advance from the company. If I was convinced that her case was genuine, I may have offered some financial assistance from my pocket (a fool and his money are easily parted) and suffered personally. It's happened in the past and will probably happen in the future, but I would have refused her an advance from the company if rules do not permit.
In any case, she was nowhere near the desired standard and had failed to improve even after warnings. I agree that termination is the last resort. But there are times when hard decisions have to be taken. Tough call, Kantha.
Regards,
Ajay
From India, New Delhi
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Hi kanthaeikon,
In my company, an Accounts Executive sent her resignation letter by email detailing what pending matters there are. She has been working for more than a year, but we have not yet confirmed her employment. Additionally, she took her salary as an advance before sending the email to us.
My concern is whether we can take any action against her, and what steps should be taken in this situation.
Regards,
kantha :roll:
---
Kantha,
Recently, in one of the seminars, we had a discussion on this trend. It is growing and may be legal; however, it might not be considered professional or ethical. Therefore, legally, you cannot take any action against her. The only action you could potentially take is to create some issues in her Full & Final Settlement and decide not to hire her for any future positions.
I hope this information proves helpful to some extent.
Regards,
Sanjeev Sharma
From India, Mumbai
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In my company, an Accounts Executive sent her resignation letter by email detailing what pending matters there are. She has been working for more than a year, but we have not yet confirmed her employment. Additionally, she took her salary as an advance before sending the email to us.
My concern is whether we can take any action against her, and what steps should be taken in this situation.
Regards,
kantha :roll:
---
Kantha,
Recently, in one of the seminars, we had a discussion on this trend. It is growing and may be legal; however, it might not be considered professional or ethical. Therefore, legally, you cannot take any action against her. The only action you could potentially take is to create some issues in her Full & Final Settlement and decide not to hire her for any future positions.
I hope this information proves helpful to some extent.
Regards,
Sanjeev Sharma
From India, Mumbai
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How to Handle an Employee Resignation.doc
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