Dear Seniors,
Greetings of the day!!
I need your help regarding issues related to the full and final settlement of employees (Staff cadre).
Case-
Presently, 2-3 marketing staff members have left the company without providing any formal resignation letter. They were not performing well, and as a result, they did not receive any increments. Therefore, we can say that both parties (employer-employee) are unsatisfied. Some of them have joined another company, while some are still idle. In summary -
1. Employees did not provide any resignation letter and left the company.
2. We want to settle their full and final amount at the earliest.
3. We have contacted them several times, but they have not come to our Head Office for the settlement. They may be busy or not interested in doing so.
Query-
As an employer, are we legally obligated to proceed with their Full and Final settlement even though they have not responded to our oral reminders?
If we are legally bound, what should be the next steps or solutions in such a case? Please guide.
Please let me know if there are any further details required. Thank you for your assistance.
Best regards,
[Your Name]
From India, Jalgaon
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Greetings of the day!!
I need your help regarding issues related to the full and final settlement of employees (Staff cadre).
Case-
Presently, 2-3 marketing staff members have left the company without providing any formal resignation letter. They were not performing well, and as a result, they did not receive any increments. Therefore, we can say that both parties (employer-employee) are unsatisfied. Some of them have joined another company, while some are still idle. In summary -
1. Employees did not provide any resignation letter and left the company.
2. We want to settle their full and final amount at the earliest.
3. We have contacted them several times, but they have not come to our Head Office for the settlement. They may be busy or not interested in doing so.
Query-
As an employer, are we legally obligated to proceed with their Full and Final settlement even though they have not responded to our oral reminders?
If we are legally bound, what should be the next steps or solutions in such a case? Please guide.
Please let me know if there are any further details required. Thank you for your assistance.
Best regards,
[Your Name]
From India, Jalgaon
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Dear Vaibhav,
The case you have presented is that of abandonment of services by the employees, irrespective of their cadre and the reasons associated with it. The legal course open to the management is taking disciplinary action against the absconding employees and dismissing them after a domestic enquiry, whether they take part in it or not.
From India, Salem
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6185The case you have presented is that of abandonment of services by the employees, irrespective of their cadre and the reasons associated with it. The legal course open to the management is taking disciplinary action against the absconding employees and dismissing them after a domestic enquiry, whether they take part in it or not.
From India, Salem
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Dear Vaibhav,
If you do F&F settlement voluntarily, one-sided action on your part without serving them with a show cause notice for their act of willful desertion from duty and making them defend their position would not only be illegal on your part but also encourage other employees to engage in such indiscipline, allowing them to leave the company abruptly at any time to the detriment of the company.
In the present case, you are not obliged to F&F settlement, as the cases clearly involve abandonment of service and unauthorized absence on the part of the employees, making them liable to disciplinary action and termination from service as a punishment for their indiscipline. Additionally, they have also engaged in illegal dual employment while still on your company's rolls, for which your company can take legal action against them and the other company can also terminate their service due to this illegal act.
Therefore, issue them a written show cause notice.
I hope this helps.
From India, Delhi
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If you do F&F settlement voluntarily, one-sided action on your part without serving them with a show cause notice for their act of willful desertion from duty and making them defend their position would not only be illegal on your part but also encourage other employees to engage in such indiscipline, allowing them to leave the company abruptly at any time to the detriment of the company.
In the present case, you are not obliged to F&F settlement, as the cases clearly involve abandonment of service and unauthorized absence on the part of the employees, making them liable to disciplinary action and termination from service as a punishment for their indiscipline. Additionally, they have also engaged in illegal dual employment while still on your company's rolls, for which your company can take legal action against them and the other company can also terminate their service due to this illegal act.
Therefore, issue them a written show cause notice.
I hope this helps.
From India, Delhi
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Full n final settlement.doc