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An employee of my company has left our office without a proper handover. After reviewing his work, we discovered discrepancies and realized he has misled us by not completing the designated tasks. After discussing with him, we informed him that we would provide the full and final payment once he submits the work. However, instead of completing his tasks, he has started sending emails threatening to go to the Labour Court and file a complaint against us. Kindly suggest what steps we can take as an employer. It would be really helpful if you could share the information at the earliest.
From India, Meerut
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Handling Employee Discrepancies and Settlements

It depends on the role of the employee. If he has been working with you as a worker category employee who is expected to bear lesser responsibilities, then you can settle the issue by making whatever is payable to him without delay. This is because a worker is always protected by law. Moreover, the work of such an employee is not subjected to higher-level assessment, and if it is done, it will be assessed as a performance indicator of his supervisor only. Therefore, if after relieving the worker, you have found that something is not okay, you can take action against the supervisor to whom this worker was reporting or the supervisor who had initially okayed the work, but you cannot initiate a proceeding against the worker. Again, the full and final settlement would include the unpaid salary, leave encashment, and even the gratuity payable. Holding these statutory dues would invite a lot of consequences.

Dealing with Managerial or Supervisory Roles

Coming to a different situation where the employee was not a worker but has been working in a managerial or supervisory role, then you can insist that the person compensates the loss to the company and hold the F&F until then. Supervisory power may include giving instructions to workers, sanctioning leaves for the workers, initiating disciplinary actions against workers, or assessing the performance of the workers. In such cases, his intention of filing a case in the Labour Court will not materialize because such an employee's case will not be entertained in Labour Courts.

Regards, Madhu.T.K

From India, Kannur
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Dear Uma,

Please reply to those emails clarifying your stance that you have not terminated him, but he has left on his own accord without completing his work or properly handing over the charge. Kindly point out instances of negligence on his part. Ask him to report for duty, and after completing the assigned tasks, if he wishes to resign, he should submit a formal resignation. Upon acceptance and serving the proper notice as per the appointment letter, he will be relieved, and his final dues will be paid.

Thank you.

From India, Pune
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You have not specified under what cadre the employee was working. Secondly, it is not clear whether any appointment has been given to him stipulating the company's rules and regulations, as well as the notice period to be served in case of resignation. Assuming you have provided details regarding his work and designation, and if the employee has left the organization without proper intimation to the company, then you can proceed with his full and final settlement.

Also, you can direct the employee to complete his exit formalities and ensure that he obtains a clearance certificate from the department he was working in. Only then does the final settlement factor come into play.

Thank you.

From India, Bangalore
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