Dear all seniors,
One of our senior staff members left his position as AGM of the company on January 4th, 2014, without prior notice and submitted his resignation via email on January 12th, 2014, for Full and Final (F&F) settlement. My query is, if the termination clause in his appointment letter states the following: "After Confirmation, either party shall have the right to terminate this agreement by giving the other 3 months' notice in writing or by paying notice pay in lieu thereof without assigning any reason whatsoever," what legal or verbal actions can be taken against him?
Please guide me on the appropriate steps to take.
Regards
From India, Calcutta
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1One of our senior staff members left his position as AGM of the company on January 4th, 2014, without prior notice and submitted his resignation via email on January 12th, 2014, for Full and Final (F&F) settlement. My query is, if the termination clause in his appointment letter states the following: "After Confirmation, either party shall have the right to terminate this agreement by giving the other 3 months' notice in writing or by paying notice pay in lieu thereof without assigning any reason whatsoever," what legal or verbal actions can be taken against him?
Please guide me on the appropriate steps to take.
Regards
From India, Calcutta
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From 4th Jan till 12th Jan have you ever send any letter stating unauthorized leave ??? Secondly send a reply stating termination clause and demanding the notice pay
From India, Ahmadabad
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From India, Ahmadabad
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Thank you for your replies! But sir, he was one of our senior staff, so we have not issued any kind of notice. What action will he take against the company? What action do we have to take against him? What should we do if he comes for his F&F settlement? Please guide.
From India, Calcutta
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From India, Calcutta
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Simply send him/her the notice stating the Termination clause and to deposit the Notice Pay alongwith all company assets if any
From India, Ahmadabad
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From India, Ahmadabad
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Understanding Notice Period Obligations
Firstly, check your company policy to see if the company requires a notice period of 3 months from employees who are leaving. If the answer is yes, you should request the employee to adhere to the notice period. If the employee has not completed the necessary formalities upon leaving, especially at a senior level, there is no obligation to pay the full and final settlement until the employee provides a 3-month notice period or an equivalent amount.
Regards,
From India, Mumbai
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Firstly, check your company policy to see if the company requires a notice period of 3 months from employees who are leaving. If the answer is yes, you should request the employee to adhere to the notice period. If the employee has not completed the necessary formalities upon leaving, especially at a senior level, there is no obligation to pay the full and final settlement until the employee provides a 3-month notice period or an equivalent amount.
Regards,
From India, Mumbai
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Your scenario gives rise to the following major issues:
1. His relieving/resignation acceptance.
2. His experience letter.
3. His Full and Final (F&F) settlement.
4. Recovery of any and all company assets in his possession (including laptops, ID, access cards, etc.).
Rights and Obligations of Your Company
1. Your company has a legal right to recover 3 months' salary against notice period adjustments (as per the employment agreement stated by you above).
2. Your company has a legal right to recover all company assets in his possession.
3. Your company has an obligation to give him his relieving letter and F&F.
Hope this answers your questions. You can reach me at the email below in case you want to discuss this in more detail.
Regards,
Jay
[Email Removed For Privacy Reasons]
From India, Delhi
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1. His relieving/resignation acceptance.
2. His experience letter.
3. His Full and Final (F&F) settlement.
4. Recovery of any and all company assets in his possession (including laptops, ID, access cards, etc.).
Rights and Obligations of Your Company
1. Your company has a legal right to recover 3 months' salary against notice period adjustments (as per the employment agreement stated by you above).
2. Your company has a legal right to recover all company assets in his possession.
3. Your company has an obligation to give him his relieving letter and F&F.
Hope this answers your questions. You can reach me at the email below in case you want to discuss this in more detail.
Regards,
Jay
[Email Removed For Privacy Reasons]
From India, Delhi
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Understanding Full and Final Settlement
Full and Final settlement itself means "Full and Final settlement of dues," which is applicable to both the employee and the employer. Also, full and final can be either payable to or recoverable from the employee. A senior person, like the one mentioned in your query, must understand all of these aspects.
Notice Period and Recovery
The notice period pay, payable and/or recoverable as per the conditions in the appointment letter, can be recovered from the employee if you have an accepted copy of the appointment letter from the employee. As an employer, you should prepare the final statement of Full and Final settlement and communicate with the employee, especially if you have to recover an amount from them, including the notice period salary.
Remedial Measures
Furthermore, there can be several remedial measures if a departing employee does not honor their commitments.
From India, Gwalior
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Full and Final settlement itself means "Full and Final settlement of dues," which is applicable to both the employee and the employer. Also, full and final can be either payable to or recoverable from the employee. A senior person, like the one mentioned in your query, must understand all of these aspects.
Notice Period and Recovery
The notice period pay, payable and/or recoverable as per the conditions in the appointment letter, can be recovered from the employee if you have an accepted copy of the appointment letter from the employee. As an employer, you should prepare the final statement of Full and Final settlement and communicate with the employee, especially if you have to recover an amount from them, including the notice period salary.
Remedial Measures
Furthermore, there can be several remedial measures if a departing employee does not honor their commitments.
From India, Gwalior
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Termination Rights and Asset Recovery
The appointment letter gives equal rights to the employer and the employee to terminate the agreement by giving 3 months' notice to the other party. You are well within your rights to demand amounts equal to three months' salary from him, irrespective of the position he was holding prior to his resignation in your company. You are also well within your rights to recover the costs of any assets (laptop, cell phone, etc.) that your company might have provided him for his official use.
First of all, reply to his mail (don't write an email, send a letter by Registered A.D.) citing the clause in the appointment letter and asking him to remit notice pay. Also, mention that if he fails to do so, the company shall be constrained to deduct the same from his dues.
From India, Mumbai
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The appointment letter gives equal rights to the employer and the employee to terminate the agreement by giving 3 months' notice to the other party. You are well within your rights to demand amounts equal to three months' salary from him, irrespective of the position he was holding prior to his resignation in your company. You are also well within your rights to recover the costs of any assets (laptop, cell phone, etc.) that your company might have provided him for his official use.
First of all, reply to his mail (don't write an email, send a letter by Registered A.D.) citing the clause in the appointment letter and asking him to remit notice pay. Also, mention that if he fails to do so, the company shall be constrained to deduct the same from his dues.
From India, Mumbai
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Irrespective of position (senior/junior), every employee is governed by the policies of the company, and they have to respect and abide by these policies. Don't hesitate to send the concerned employee a notice to serve the notice period or pay in lieu thereof, as stated in the termination clause in the appointment letter. This will set an example for others as well.
Best of luck.
From India, Mumbai
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Best of luck.
From India, Mumbai
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Thanks for your replies! But sir, he was one of our senior staff, so we have not issued any kind of notice. What action will he take against the company? And what action do we have to take against him? What should we do if he comes for his F&F settlement? Please guide...
Fairness and Impartiality in Company Policies
So far as the company's policies are concerned, if you want to be fair and impartial in your duties and responsibilities, you must not discriminate between employees, irrespective of whether he is senior staff or very junior staff when he violates company policies and tends to cause indiscipline. If you adopt dual policies, you would become the cause of frequent trouble to the management when others would also follow the same path and start leaving the company abruptly like your senior staff and hinder the work of the company. Besides, you would be questioned for extending favors to the superiors, while juniors would suffer on account of your wrong policies.
Full and Final Settlement Considerations
So far as F&F is concerned, the question of F&F can arise only when he explains his conduct of becoming so irresponsible in leaving the company against the terms & conditions of his appointment. Clearly, he needs to be issued a show-cause notice, explaining why he should not be subjected to disciplinary action leading to termination of his service based on his grave misconduct. In fact, being a staff member at a responsible position, he should not have set such an example of indiscipline. He should have meticulously followed the terms of appointment and resignation from the organization.
From India, Delhi
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Fairness and Impartiality in Company Policies
So far as the company's policies are concerned, if you want to be fair and impartial in your duties and responsibilities, you must not discriminate between employees, irrespective of whether he is senior staff or very junior staff when he violates company policies and tends to cause indiscipline. If you adopt dual policies, you would become the cause of frequent trouble to the management when others would also follow the same path and start leaving the company abruptly like your senior staff and hinder the work of the company. Besides, you would be questioned for extending favors to the superiors, while juniors would suffer on account of your wrong policies.
Full and Final Settlement Considerations
So far as F&F is concerned, the question of F&F can arise only when he explains his conduct of becoming so irresponsible in leaving the company against the terms & conditions of his appointment. Clearly, he needs to be issued a show-cause notice, explaining why he should not be subjected to disciplinary action leading to termination of his service based on his grave misconduct. In fact, being a staff member at a responsible position, he should not have set such an example of indiscipline. He should have meticulously followed the terms of appointment and resignation from the organization.
From India, Delhi
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hiiiii, 2 all seniors, Dear sir, we have not post him any letter stating unauthorized leave & not demanded notice pay..till now so pls tell me should we send him the same reght now????????????
From India, Calcutta
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From India, Calcutta
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It is too late to send the letter of unauthorized leave. Yes, you can send a notice demanding the Notice Pay and proper handover for the smooth exit of the employee in response to the letter/mail received by you for FNF settlement.
From India, Ahmadabad
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From India, Ahmadabad
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Dear Dinesh, Good Evening, Reading your statement, I understand that you have an issue with a senior person. My kind advice to you is to first have an oral discussion with him regarding the reason for the unexpected resignation. If you can exactly understand what his problem is, as an HR professional, try to provide a solution and bring him back to the company. An employee with experience is to be treated as an asset of the organization.
Secondly, arrange an unofficial meeting with him. Personally explain the case in both ways, either of resignation under the notice period or termination. You will find a solution to move forward.
The first thing is to have a word with him orally.
From India, Vijayawada
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Secondly, arrange an unofficial meeting with him. Personally explain the case in both ways, either of resignation under the notice period or termination. You will find a solution to move forward.
The first thing is to have a word with him orally.
From India, Vijayawada
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In my view, if an employee is absent, HR should inquire in case he/she may be in trouble or need help, and you may be updated about the situation.
Handling Resignation and Confidential Information
Second, take a printout of his resignation letter and discuss with your higher authority what to do and how to handle the situation. He might have some confidential information and assets in his possession. Try to recover them at the earliest as they may be misused. Regarding payment, your organization may send him a registered post along with a copy of his employment letter, highlighting the termination clause.
Finding a Resolution
The best way is to have a discussion with him and find a solution. At worst, the organization may go to the court of law. Don’t get personal and ask your manager to act in order for you to be on the safe side.
Regards.
From India, Bhubaneswar
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Handling Resignation and Confidential Information
Second, take a printout of his resignation letter and discuss with your higher authority what to do and how to handle the situation. He might have some confidential information and assets in his possession. Try to recover them at the earliest as they may be misused. Regarding payment, your organization may send him a registered post along with a copy of his employment letter, highlighting the termination clause.
Finding a Resolution
The best way is to have a discussion with him and find a solution. At worst, the organization may go to the court of law. Don’t get personal and ask your manager to act in order for you to be on the safe side.
Regards.
From India, Bhubaneswar
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Immediate Action for Unauthorized Leave
First of all, ask him to report for duty immediately (presume that he has proceeded on leave without permission/sanction from the management). Also, inform him that his period of leave of absence shall be treated as unauthorized absence from duty and shall be treated as loss of pay. Give the option to him to either resign immediately or give three months' notice period as per his appointment terms. If he wants to be relieved immediately, proceed with that, but issue a resignation acceptance letter, clearly stating that his salary in lieu of the notice period shall be adjusted against his full and final settlement of dues.
Considerations for Resignation Acceptance
How many years of service has he put in your company? This also matters while issuing the resignation acceptance letter. If the total dues payable to him are much less than his notice pay (this can be due to his short service), please ensure that he deposits his salary to the company before he is relieved from the company.
Thanks
Regards,
R K Nair
From India, Aizawl
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First of all, ask him to report for duty immediately (presume that he has proceeded on leave without permission/sanction from the management). Also, inform him that his period of leave of absence shall be treated as unauthorized absence from duty and shall be treated as loss of pay. Give the option to him to either resign immediately or give three months' notice period as per his appointment terms. If he wants to be relieved immediately, proceed with that, but issue a resignation acceptance letter, clearly stating that his salary in lieu of the notice period shall be adjusted against his full and final settlement of dues.
Considerations for Resignation Acceptance
How many years of service has he put in your company? This also matters while issuing the resignation acceptance letter. If the total dues payable to him are much less than his notice pay (this can be due to his short service), please ensure that he deposits his salary to the company before he is relieved from the company.
Thanks
Regards,
R K Nair
From India, Aizawl
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