Salary & settlement for former employees
I need clarification on whether we are required to process the salaries of employees who have left the company without notice and have not reported for duty after giving an intimation over the phone just the previous day. What are the statutory/legal obligations?
Rajesh
From India, Kannur
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2I need clarification on whether we are required to process the salaries of employees who have left the company without notice and have not reported for duty after giving an intimation over the phone just the previous day. What are the statutory/legal obligations?
Rajesh
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From India, Kannur
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You can hold the salary of such employees until they come in person and do their final clearance by obtaining no objection certificates from different departments. Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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Dear Rajesh, there is a process that takes care of such issues. Moreover, when there is a legal obligation, you need to define and document the process so that nobody questions you in the future. The basic process is:
1) You need to issue the 1st letter immediately on behalf of the immediate superior stating that it has been informed by your immediate superior that you are absent from your duties without any information from DT, and hence you are advised to report within 3 days from the date of receipt of the letter. (The letter should be posted via registered post/speed post with AD.)
2) In case you do not receive any reply, issue the 2nd notice referring to the 1st letter within 15-20 days and mention that if you do not report for duty on the specified date, it will be treated as you are no longer interested in employment.
3) Issue the 3rd notice exactly in the same manner, which should be sent within 2 days from the date of receipt of the AD. Mention that if you do not report for duty on the specified date, it will be treated as you are no longer interested in employment, and you will be terminated.
Please note to mention in all the letters that the business is suffering due to non-authorized absence.
After completing this process, you can take action accordingly, prepare full and final settlement, and send whatever dues are pending (after all deductions) to the employee by cheque. If you wish, the pending dues can be kept as unpaid salary, but that is not the right way. Legally, you need to close the loop by full and final settlement and paying the balance amount. In case the amount is due from the employee, I believe nobody will wait for clearance; they will immediately prepare full and final settlement and send a notice to clear the dues. Please note that dues clearance is an internal process. For any reason (medical, etc.), the employee may not be in a position to come and complete the settlement process. Hence, it is a legal obligation of the employer to complete the loop and terminate the employee in a proper manner, which is also a good practice. The rest all depends on the culture the organization follows for such issues. Further to the above, consultation with a lawyer handling employee-related issues is suggested.
Regards, Atul
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1) You need to issue the 1st letter immediately on behalf of the immediate superior stating that it has been informed by your immediate superior that you are absent from your duties without any information from DT, and hence you are advised to report within 3 days from the date of receipt of the letter. (The letter should be posted via registered post/speed post with AD.)
2) In case you do not receive any reply, issue the 2nd notice referring to the 1st letter within 15-20 days and mention that if you do not report for duty on the specified date, it will be treated as you are no longer interested in employment.
3) Issue the 3rd notice exactly in the same manner, which should be sent within 2 days from the date of receipt of the AD. Mention that if you do not report for duty on the specified date, it will be treated as you are no longer interested in employment, and you will be terminated.
Please note to mention in all the letters that the business is suffering due to non-authorized absence.
After completing this process, you can take action accordingly, prepare full and final settlement, and send whatever dues are pending (after all deductions) to the employee by cheque. If you wish, the pending dues can be kept as unpaid salary, but that is not the right way. Legally, you need to close the loop by full and final settlement and paying the balance amount. In case the amount is due from the employee, I believe nobody will wait for clearance; they will immediately prepare full and final settlement and send a notice to clear the dues. Please note that dues clearance is an internal process. For any reason (medical, etc.), the employee may not be in a position to come and complete the settlement process. Hence, it is a legal obligation of the employer to complete the loop and terminate the employee in a proper manner, which is also a good practice. The rest all depends on the culture the organization follows for such issues. Further to the above, consultation with a lawyer handling employee-related issues is suggested.
Regards, Atul
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