We are a manufacturing company and have faced many problems with marketing personnel. They often leave the job without clearing their dues from the market. Therefore, to take legal action, management wants to issue an appointment letter on stamp paper. Kindly guide me.
From India, Ajmer
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4From India, Ajmer
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Dear Luxture,
Greetings!!!
It's a childish notion. Your appointment letter on company letterhead is as valid a document as a stamp paper. Instead of looking at legal options to handle such cases, in my opinion, you should review your recruiting practices to ensure good hires. Additionally, make a provision for a notice period so that whoever is leaving the organization can transfer his/her responsibilities, making the exit process smoother.
From India, Delhi
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Greetings!!!
It's a childish notion. Your appointment letter on company letterhead is as valid a document as a stamp paper. Instead of looking at legal options to handle such cases, in my opinion, you should review your recruiting practices to ensure good hires. Additionally, make a provision for a notice period so that whoever is leaving the organization can transfer his/her responsibilities, making the exit process smoother.
From India, Delhi
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Thank you for the kind response. We do have a notice period provision, but still, employees are leaving in the market. We also have a handing-over process in place. My question pertains to situations where, even after following all HR practices diligently, we still encounter such problems.
From India, Ajmer
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From India, Ajmer
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Dear Luxture,
Usually, as a standard practice, an Appointment Letter is prepared on the company's letterhead with all the terms and conditions stated. The salary breakup and the notice period are mentioned in the appointment letter. Penalties regarding non-adherence to the notice period are also mentioned in the appointment letter.
Once an employee accepts the Appointment Letter after joining an organization, he/she accepts all the terms and conditions stated by the Company. In case the employee leaves the Company and does not adhere to the clauses of the notice period or final settlement as mentioned in the Appointment Letter, then the Company has the right to take legal action against that employee.
Since the Appointment Letter is signed by the authorized signatory appointed by the Company, it can be made on the Company's letterhead. The preparation of the appointment letter on stamp paper is not necessary.
From India, Mumbai
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Usually, as a standard practice, an Appointment Letter is prepared on the company's letterhead with all the terms and conditions stated. The salary breakup and the notice period are mentioned in the appointment letter. Penalties regarding non-adherence to the notice period are also mentioned in the appointment letter.
Once an employee accepts the Appointment Letter after joining an organization, he/she accepts all the terms and conditions stated by the Company. In case the employee leaves the Company and does not adhere to the clauses of the notice period or final settlement as mentioned in the Appointment Letter, then the Company has the right to take legal action against that employee.
Since the Appointment Letter is signed by the authorized signatory appointed by the Company, it can be made on the Company's letterhead. The preparation of the appointment letter on stamp paper is not necessary.
From India, Mumbai
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No need for stamp paper. Letter Head would do. Things could get complicated as candidates would hesitate to accept Stamp paper and move could back fire
From India, Chennai
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From India, Chennai
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The problem may not be in your HR process and systems. Problems may be in the sales process. Ask your management to examine the sales process, which includes collection and accounting. This step in the sales process is very critical, and unless your management addresses this issue, the law cannot help you. Many organizations have addressed this issue with the latest technology and improved on collection and accounting.
From India, Chennai
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From India, Chennai
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stamp paper is not a valid document unless it is registered. Never heard of appointment letter in Stamp paper. Pon
From India, Lucknow
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From India, Lucknow
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Dear Luxture,
Greetings!
You may be following HR practices, but are you following the right practices in the right way? Some of the members have rightly pointed out the drawbacks of having an appointment letter on stamp papers. You need to understand that even if you want to take some legal action, a company letterhead is as valid a document as stamp paper.
In addition to this, you should also agree with the fact that a person may not be able to recover/collect all dues in the notice period unless and until your notice period is as long as three months or so, and in this period, you do not tell your employee to initiate new sales and be focused only on collection.
One way to curb this menace at your organization is to have innovative salary methods directed at retention. One way that comes to my mind is:
1. Hire candidates at 10-15% higher than the average market salary. You will get quality candidates who are serious about their job, and it will be difficult for them to find jobs in companies from the same industry because their package will be higher than average.
2. Retain the extra 10-15% in fixed deposits of the bank. Give your employee normal bank interest on this amount.
3. Have a time period, let us say one year, before you make this payout. This will stop employees from going away before completing this period.
4. If they still leave, the money shall be left with you.
From India, Delhi
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Greetings!
You may be following HR practices, but are you following the right practices in the right way? Some of the members have rightly pointed out the drawbacks of having an appointment letter on stamp papers. You need to understand that even if you want to take some legal action, a company letterhead is as valid a document as stamp paper.
In addition to this, you should also agree with the fact that a person may not be able to recover/collect all dues in the notice period unless and until your notice period is as long as three months or so, and in this period, you do not tell your employee to initiate new sales and be focused only on collection.
One way to curb this menace at your organization is to have innovative salary methods directed at retention. One way that comes to my mind is:
1. Hire candidates at 10-15% higher than the average market salary. You will get quality candidates who are serious about their job, and it will be difficult for them to find jobs in companies from the same industry because their package will be higher than average.
2. Retain the extra 10-15% in fixed deposits of the bank. Give your employee normal bank interest on this amount.
3. Have a time period, let us say one year, before you make this payout. This will stop employees from going away before completing this period.
4. If they still leave, the money shall be left with you.
From India, Delhi
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Dear Sir,
Your letterhead is sufficient. If you have any doubts regarding the employee, you can request a separate written document from that individual. There is no requirement for a stamp paper; a document on white paper is adequate. This document holds legal validity, and if possible, it is advisable to have two witnesses present as well.
Thanks & Regards,
J. Srinivas M.S.C., LLM
Advocate
From India, Hyderabad
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Your letterhead is sufficient. If you have any doubts regarding the employee, you can request a separate written document from that individual. There is no requirement for a stamp paper; a document on white paper is adequate. This document holds legal validity, and if possible, it is advisable to have two witnesses present as well.
Thanks & Regards,
J. Srinivas M.S.C., LLM
Advocate
From India, Hyderabad
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The moment a candidate accepts the terms and conditions of appointment, issued on your company's letterhead, by signing and returning the duplicate copy, it becomes legally binding on both parties. As my esteemed colleagues have mentioned, you must introspect to revise policies related to recruitment and employment. There is an old saying: "When you pay peanuts, you get only monkeys." Therefore, investigate why your employees are leaving abruptly, assess your compensation structure in comparison to your competitors, track where your employees are going, and consider improving working conditions. It's important to note that in any organization, employees do not necessarily stay until retirement; in today's dynamic landscape, people often move between companies, cities, and even countries. While no one is irreplaceable, an annual employee turnover exceeding 15 to 20% may indicate underlying organizational issues.
So, start with introspection.
Best wishes
From India, Bengaluru
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So, start with introspection.
Best wishes
From India, Bengaluru
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