Employee Absconding and Legal Options
We are a very small IT company with a pretty good employee retention record. We have a very liberal HR policy and benefits. Recently, we hired a developer who went on leave within 2.5 months of his service, citing the death of a close relative. He never communicated the return date, and when we contacted him after almost 2 weeks, he gave a random date when he would resume work. When he did not show up for work on the date given by him, we contacted him again and were told that he is himself in a hospital for some treatment, and that the treatment would last for 8 weeks. While we are still giving him the benefit of the doubt, we are pretty sure he is absconding and will never come back.
We sent him an email and gave him the option to either furnish proof of his medical condition and continue his employment with us (Unpaid Leave) OR resign on medical grounds, after providing the proof of his medical condition, in which case we are willing to waive his notice period and relieve him of his duties gracefully. As you can imagine, we never received a response. Due to his unprofessional behavior, we have incurred a significant financial loss (for a company our size). We could not bill our client for his services since our agreement with the client says that newly hired employees must be trained first and cannot be billed for 2 months. We paid him 2.5 months of salary, relocation expenses, health insurance reimbursement, and the recruiter's fees, which was 1 month's salary. So basically, we are out 3.5 months of his pay and more.
Clauses in Employment Offer Letter
Our employment offer letter has the following clauses when an employee decides to leave:
1. Financial reimbursement equivalent to notice period salary if the employee doesn't serve the notice period
2. Training expenses (2 months' salary) if the employee quits within 1 year
3. Moonlighting Clause - The employee cannot accept employment elsewhere while actively employed with us
We do not have any bond signed on stamp paper. All of this is in the employment offer letter, and each clause is signed individually by the employee. We know that we can file a civil suit but would like to avoid legal hassles as much as possible. We have decided to keep him on our payroll, on unpaid leave, until he completes his exit formalities. We are going to send him a few more reminders and requests to resume, but it's doubtful that he will respond to them.
Questions and Suggestions
- Is it legal for us to contact his future employers and make them aware that he is still employed with us?
- This is a long shot, but is there a database where I can report him so that future employers can find out about what he did?
- I hired him through a recruiter. Do recruiters have some sort of database for such employees?
I know people will tell me to forget about it and move on, but this guy has caused us a significant financial loss, not to mention a loss of goodwill with our client (They were upset when we said the guy had left. They think we might have treated him unfairly).
Any suggestions are appreciated.
From India, Ahmedabad
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We are a very small IT company with a pretty good employee retention record. We have a very liberal HR policy and benefits. Recently, we hired a developer who went on leave within 2.5 months of his service, citing the death of a close relative. He never communicated the return date, and when we contacted him after almost 2 weeks, he gave a random date when he would resume work. When he did not show up for work on the date given by him, we contacted him again and were told that he is himself in a hospital for some treatment, and that the treatment would last for 8 weeks. While we are still giving him the benefit of the doubt, we are pretty sure he is absconding and will never come back.
We sent him an email and gave him the option to either furnish proof of his medical condition and continue his employment with us (Unpaid Leave) OR resign on medical grounds, after providing the proof of his medical condition, in which case we are willing to waive his notice period and relieve him of his duties gracefully. As you can imagine, we never received a response. Due to his unprofessional behavior, we have incurred a significant financial loss (for a company our size). We could not bill our client for his services since our agreement with the client says that newly hired employees must be trained first and cannot be billed for 2 months. We paid him 2.5 months of salary, relocation expenses, health insurance reimbursement, and the recruiter's fees, which was 1 month's salary. So basically, we are out 3.5 months of his pay and more.
Clauses in Employment Offer Letter
Our employment offer letter has the following clauses when an employee decides to leave:
1. Financial reimbursement equivalent to notice period salary if the employee doesn't serve the notice period
2. Training expenses (2 months' salary) if the employee quits within 1 year
3. Moonlighting Clause - The employee cannot accept employment elsewhere while actively employed with us
We do not have any bond signed on stamp paper. All of this is in the employment offer letter, and each clause is signed individually by the employee. We know that we can file a civil suit but would like to avoid legal hassles as much as possible. We have decided to keep him on our payroll, on unpaid leave, until he completes his exit formalities. We are going to send him a few more reminders and requests to resume, but it's doubtful that he will respond to them.
Questions and Suggestions
- Is it legal for us to contact his future employers and make them aware that he is still employed with us?
- This is a long shot, but is there a database where I can report him so that future employers can find out about what he did?
- I hired him through a recruiter. Do recruiters have some sort of database for such employees?
I know people will tell me to forget about it and move on, but this guy has caused us a significant financial loss, not to mention a loss of goodwill with our client (They were upset when we said the guy had left. They think we might have treated him unfairly).
Any suggestions are appreciated.
From India, Ahmedabad
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It is not advisable to contact an absconding employee's future employers directly as it may lead to legal repercussions. However, you can take certain steps to protect your company's interests:
1. Document the Absconding: Keep records of all communication attempts with the employee, including emails, letters, and any other relevant documentation.
2. Legal Consultation: Seek legal advice to understand your rights and options under Indian labor laws regarding absconding employees.
3. Employee Database: While there isn't a centralized database for reporting such incidents, you can maintain internal records to prevent future hiring mistakes.
4. Recruiter Involvement: Inform the recruiter about the situation as they may have policies or databases to handle such cases.
By following these steps and consulting with legal experts, you can mitigate the impact of absconding employees on your business while staying compliant with labor laws.
From India, Gurugram
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741. Document the Absconding: Keep records of all communication attempts with the employee, including emails, letters, and any other relevant documentation.
2. Legal Consultation: Seek legal advice to understand your rights and options under Indian labor laws regarding absconding employees.
3. Employee Database: While there isn't a centralized database for reporting such incidents, you can maintain internal records to prevent future hiring mistakes.
4. Recruiter Involvement: Inform the recruiter about the situation as they may have policies or databases to handle such cases.
By following these steps and consulting with legal experts, you can mitigate the impact of absconding employees on your business while staying compliant with labor laws.
From India, Gurugram
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Legal Clarification on Absconding Employee, Contract Labour Engagement & Leave Entitlement Ammen.pdf