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We are currently facing a problem with an employee who unexpectedly left our organization without serving the mandatory notice period. The said employee took leave, resigned after a week, and did not come back. In the offer letter given to him, it was clearly mentioned that he was required to serve a two-month notice period which was agreed upon.

However, we unfortunately do not possess a signed copy of his appointment letter. This document specifically mentioned that, in the event of not serving the notice period, the employee would be liable to pay two months\' salary as a penalty.

This situation has raised significant concerns about how we should approach the employee to recover the salary for the unfulfilled notice period. We are in urgent need of advice on how to manage this issue. Thank you for your help.

P.S. Our policy manual doesn't clarify the point about salary in lieu of notice period either.

From India, Gurugram
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It's unfortunate to hear about your situation. However, since you don't have a signed copy of the appointment letter that includes the penalty clause for not serving the notice period, legally enforcing this might be a challenge. Here are a few steps you can consider:

1. Approach the employee directly: Start by having a conversation with the employee to understand his or her reasons for not serving the notice period. It's possible there might have been some miscommunication or misunderstanding. Try to resolve the issue amicably if possible.

2. Send a formal letter: If the direct approach doesn't work, send a formal letter or email to the employee explaining the situation and your expectations. Make sure to keep a copy of this communication for your records.

3. Seek legal advice: If the employee still doesn't cooperate, you might need to seek legal advice. However, without a signed document, enforcing the penalty might be difficult. A lawyer can guide you on the best course of action based on local labor laws and regulations.

4. Review your HR policies: To prevent such situations in future, you might want to review your HR policies. Make sure that all necessary documents are signed and that the policies are clear, especially regarding the notice period and penalties for not serving it.

Remember, it's important to handle such situations with care as they can affect your company's reputation. Always try to resolve issues amicably first before seeking legal action.

From India, Gurugram
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In your case you do not have the signed copy of the appointment letter but as per your statement it was clearly mentioned that he was required to serve a two-month notice period which was agreed upon. As he accepted the offer letter then keeping in view this letter of acceptance you can serve notice in this regard. Withhold the F&F payment i.e. EL, Bonus, gratuity extra. Also do not issue the experience/service certificate if the separation conditions have not been fulfilled from his end. Be careful in future against issuance of appointment letter. Examine the law applicable in your case for separation from the services from both the sides. Do not put conditions which against the provisions of law. If your unit is covered under S&E Act, then for separation provisions go through the applicable Rules specifically for service of notice period. If the person employed by you is workman under ID Act, 1947 then this Act will prevail over the state enactment for separation.

R N KHOLA

From India, Delhi
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  • CA
    CiteHR.AI
    (Fact Checked)-Your advice is accurate, but remember, withholding F&F payment or certificates can lead to legal issues if not handled properly. Always consult legal counsel. (1 Acknowledge point)
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  • Dear Vamn1,
    We confront issues of legal nature for lapse in system and policy.
    Did you sent notice to the are employee to serve the mandatory notice period?
    The offer letter can not be considered proper in absense of an appointment letter.
    The terms and conditions in an offer letter just an offer until accepted.
    The big issue is, you do not have signed copy of the offer letter and appointment letter too.
    How do you establish the claim of conditions of service without a valid document?
    The next issue lying on your part is, that your policy doesn't full fill the salary in lieu of notice period either is 'Discriminatory nature ".
    Thus, legally you have limited scope to act in or go for an legal action.
    On other hand you should act. One thing you can do, send a lawyer notice in claim of notice pay amount or else company can declared absconding and termination due to abandonment of service in news paper, if not comply within seven days of the notice.

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-Your advice is accurate. However, it's important to note that the absence of a signed appointment letter might limit legal recourse. Always keep signed documents. (1 Acknowledge point)
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  • In response to your situation, it's important to note that without a signed copy of the appointment letter, it becomes a challenge to establish the terms and conditions of employment. This includes the mandatory notice period and the penalty for not serving it. Considering the facts provided, here are a few steps you can take:

    1. Consult with your legal team or seek external legal counsel. This situation involves legal implications that require professional advice. They can guide you on the best course of action based on labor laws applicable to your jurisdiction.

    2. Review your internal policies and procedures. If your policy manual does not clarify about salary in lieu of notice period, it's a good time to rectify this gap. Make sure it is clearly stated and communicated to all employees to prevent such occurrences in the future.

    3. Consider sending a formal notice to the former employee. Detail the issue at hand and request for the notice pay amount. This should ideally be done through a lawyer to ensure all legal aspects are covered.

    4. If the former employee does not respond, you can consider other options such as declaring the employee as absconding and termination due to abandonment of service in a newspaper. This should be a last resort and must be done in accordance with local labor laws.

    5. Moving forward, ensure all important documents such as offer letters and appointment letters are duly signed and copies are stored safely. This will establish a clear record of terms and conditions agreed upon by both parties.

    6. Regularly review and update your company policies to ensure they are comprehensive and in line with current labor laws. Avoid any discriminatory clauses that could potentially lead to legal disputes.

    Remember, it's crucial to approach this situation in a way that respects the rights of the former employee while protecting the interests of the organization. It might be a learning curve for your organization to put in place more robust HR policies and practices.

    From India, Gurugram
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    Hello,
    only you can contact legal department and submit recovery suit notice form court.

    From India, undefined
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  • CA
    CiteHR.AI
    (Fact Checked)-Your advice is correct, but also consider discussing with the employee first. A mutual agreement can avoid legal complexities. (1 Acknowledge point)
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  • Query poster do not have time to respond on our responses.
    From India, Delhi
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    Dear Sirs

    Thank you for taking out time to revert with your responses.

    He has submitted signed offer letter which specifies 2 months notice but no mention of salary in lieu.

    Appointment letter has this clause but not received the signed copy

    No other policy talk about these clauses. It is mentioned that conditions are governed by employment documents.

    How we can write to him to let him know the dues recoverable from him without sabotaging the company image and legally protecting him?

    From India, Gurugram
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  • CA
    CiteHR.AI
    (Fact Checked)-Your approach seems correct. You can write a polite, professional letter to the employee, mentioning the terms of the offer letter and the unfulfilled notice period. (1 Acknowledge point)
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