Respected Seniors,
I am working as HR Executive with manufacturing company. I need your guidance on below matter.
We have total 11 branches in all over India and we have appointed employees in all branches for sales and marketing activities. Since last few months there is trend started to leave the job without completing notice period. On 7th of every month we credit the salary to individual employees account and on 8th we get resignation from branch employee.
Since last 4 months total 6 employees left without completing notice period and without completing handover formalities. We ask employees to sign two years service bond plus there is clause in appointment letter that employee must complete 30 days notice period if he wish to leave.
To stop this trend, can we reject the resignation letter of these employees and take legal action against employees who have not completed notice period and left the job?
Please guide.
Regards,
Sagar
From India, Pune
4I am working as HR Executive with manufacturing company. I need your guidance on below matter.
We have total 11 branches in all over India and we have appointed employees in all branches for sales and marketing activities. Since last few months there is trend started to leave the job without completing notice period. On 7th of every month we credit the salary to individual employees account and on 8th we get resignation from branch employee.
Since last 4 months total 6 employees left without completing notice period and without completing handover formalities. We ask employees to sign two years service bond plus there is clause in appointment letter that employee must complete 30 days notice period if he wish to leave.
To stop this trend, can we reject the resignation letter of these employees and take legal action against employees who have not completed notice period and left the job?
Please guide.
Regards,
Sagar
From India, Pune
First the company needs to examine reasons for quick exits.
Critical self analysis is the need of the hour.
Legal resort is there for people who exit breaching terms of job offer, but one must remember that legal process is time consuming and expensive and positive verdict not assured.
If your company is involved in too many such legal case, market reputation also takes a sharp dip.
Clause of bond and notice period needs examination.
Bonds can be treated as restrictive employment practise in many cases.
Attrition needs to be examined with care and change in HR policies would help.
From India, Pune
Critical self analysis is the need of the hour.
Legal resort is there for people who exit breaching terms of job offer, but one must remember that legal process is time consuming and expensive and positive verdict not assured.
If your company is involved in too many such legal case, market reputation also takes a sharp dip.
Clause of bond and notice period needs examination.
Bonds can be treated as restrictive employment practise in many cases.
Attrition needs to be examined with care and change in HR policies would help.
From India, Pune
Hi Sagar,
I agree with Nathrao. First you need to check the reason behind the exits. There may be plenty of reasons, company policy, work pressure, compensation, working culture, opportunities in the market etc.
Take exit interviews, this will help in understanding the issues. The exit interview should be kept confidential and employee should show trust on the company. Don't argue with employee on his points mentioned in exit interview. Take his feedback on positive way and analysis the problem, you may find solutions.
From India, Bangalore
I agree with Nathrao. First you need to check the reason behind the exits. There may be plenty of reasons, company policy, work pressure, compensation, working culture, opportunities in the market etc.
Take exit interviews, this will help in understanding the issues. The exit interview should be kept confidential and employee should show trust on the company. Don't argue with employee on his points mentioned in exit interview. Take his feedback on positive way and analysis the problem, you may find solutions.
From India, Bangalore
Dear Sagar,
You do have the right and the most appropriate answer for the problem of sudden resignation by your employees in violation of the exit terms of their contracts of employment at the closing part of your own thread. Such a legal action can certainly mar the future career of such employees and of course it would be an eye-opener for other employees who are also fancying with such an idea of sudden exit. But how long can you hold on an unwilling employee to the organization's service if he chooses to quit at any cost by fulfilling the exit terms? Therefore take stock of the situation and try to find out the reasons for such mass resignations as suggested by the above learned members. Come out of the mind-set of a conventional personnel manager and respond to the situation of high attrition particularly in the sales and marketing jobs across the country as a professional HR manager by making some in-depth analysis. Find out the possible ways of retaining the employees for considerable no of years and make positive suggestions to the management.
From India, Salem
You do have the right and the most appropriate answer for the problem of sudden resignation by your employees in violation of the exit terms of their contracts of employment at the closing part of your own thread. Such a legal action can certainly mar the future career of such employees and of course it would be an eye-opener for other employees who are also fancying with such an idea of sudden exit. But how long can you hold on an unwilling employee to the organization's service if he chooses to quit at any cost by fulfilling the exit terms? Therefore take stock of the situation and try to find out the reasons for such mass resignations as suggested by the above learned members. Come out of the mind-set of a conventional personnel manager and respond to the situation of high attrition particularly in the sales and marketing jobs across the country as a professional HR manager by making some in-depth analysis. Find out the possible ways of retaining the employees for considerable no of years and make positive suggestions to the management.
From India, Salem
Dear Sagar,
It is evident from your post that your staffs are leaving just after the salary reached their account. This is a common phenomenon in the industry and the same trend is followed by everyone.
The main issue is that why people are leaving in quick sucession and in group. As an HR you need to investigate into the matter. It acertain what is the driving force behind the scenery or whether any lapse is remained from your end.
In many a times it so happens without reasons but their happenings gives us different understanding, eventhough everything is in order.
Your study and fact findings of this incident would show you the path to be followed and to restrict such incidents. It is always advisable to take preventive measure rather than for cure. Do not settle the accounts of the employees, those left without complying the notice period and other exit formalities. Issue all of them a communication to this effect.
Your immidiate action for two years service bond would create resentment among the employees. The employees already pan to exit would stear the matter for trouble . In my suggestion, call a meeting of employees and push your idea to come out from the mouth of employee. This is an improved tools mostly followed and make the employee feel that they are in process of decission making.
From India, Mumbai
It is evident from your post that your staffs are leaving just after the salary reached their account. This is a common phenomenon in the industry and the same trend is followed by everyone.
The main issue is that why people are leaving in quick sucession and in group. As an HR you need to investigate into the matter. It acertain what is the driving force behind the scenery or whether any lapse is remained from your end.
In many a times it so happens without reasons but their happenings gives us different understanding, eventhough everything is in order.
Your study and fact findings of this incident would show you the path to be followed and to restrict such incidents. It is always advisable to take preventive measure rather than for cure. Do not settle the accounts of the employees, those left without complying the notice period and other exit formalities. Issue all of them a communication to this effect.
Your immidiate action for two years service bond would create resentment among the employees. The employees already pan to exit would stear the matter for trouble . In my suggestion, call a meeting of employees and push your idea to come out from the mouth of employee. This is an improved tools mostly followed and make the employee feel that they are in process of decission making.
From India, Mumbai
Dear colleague,
The suggestion to analyse causes of exit is fine but will the staff who have already left cooperate in exit Interview? I have my doubts. Hoe to ascertain the causes is a big challenge.
I think the staff is taking the compa ny for a ride by quitting without serving notice period and immediately after collecting salary.
This situation call s for tit for tat approach. Following actions are suggested to check potential employee lying in wait to leave:
1. Don't accept resignation or even acknowledge receipt of the same.
2 Terminate the service of the person who resigns.
3 Hold payment of dues .
4 Don't issue service certificate.
Although the actions suggested are not in good taste, such a retort is warranted in the given situation
Regards
Vinayak Nagarkar
HR-Consultant and
From India, Mumbai
The suggestion to analyse causes of exit is fine but will the staff who have already left cooperate in exit Interview? I have my doubts. Hoe to ascertain the causes is a big challenge.
I think the staff is taking the compa ny for a ride by quitting without serving notice period and immediately after collecting salary.
This situation call s for tit for tat approach. Following actions are suggested to check potential employee lying in wait to leave:
1. Don't accept resignation or even acknowledge receipt of the same.
2 Terminate the service of the person who resigns.
3 Hold payment of dues .
4 Don't issue service certificate.
Although the actions suggested are not in good taste, such a retort is warranted in the given situation
Regards
Vinayak Nagarkar
HR-Consultant and
From India, Mumbai
Dear Mr Sagar,
If the employee puts up the Resignation on 8th and does NOT serve the Notice Period of 1 /2 Months then :
1. You must ask the resignee to serve his full notice period and have a proper handing over of the allotted, work responsibilities and assets like laptop etc.;
2. This must be given in writing or by mail on his official & personal e-mail ID, as if possible, his signatures must be procured on such advisory letter;
3. If the resignee does NOT serve the Notice Period, then while calculation his Full & Final Dues, 01 / 02 Month/s Salary (Basic Only, in most companies) in lieu of Notice Period NOT served should be deducted;
4. Till all the handing / taking over is done, the F&F Dues can be withheld, under proper intimation through e-mail / letter (speed post);
5. Relieving Letter can be held back;
6. Experience Letter can be held back;
7. If your liaison with the Labour Deptt. is good, then you can mark a CC of the actions being taken to the ALC / Labour Inspector.
8. If there is a large exodus of employees from your company to a particular company, then you may also take up the matter with their Top Management / HRD.
Going Legally against an employees MUST be avoided as far as possible, except, of course, Criminal cases.
THANKS & GOD BLESS.
Maj Sandeep Sahni
Plant HR Head
Jindal Tubular (India) Limited
From India, Pune
If the employee puts up the Resignation on 8th and does NOT serve the Notice Period of 1 /2 Months then :
1. You must ask the resignee to serve his full notice period and have a proper handing over of the allotted, work responsibilities and assets like laptop etc.;
2. This must be given in writing or by mail on his official & personal e-mail ID, as if possible, his signatures must be procured on such advisory letter;
3. If the resignee does NOT serve the Notice Period, then while calculation his Full & Final Dues, 01 / 02 Month/s Salary (Basic Only, in most companies) in lieu of Notice Period NOT served should be deducted;
4. Till all the handing / taking over is done, the F&F Dues can be withheld, under proper intimation through e-mail / letter (speed post);
5. Relieving Letter can be held back;
6. Experience Letter can be held back;
7. If your liaison with the Labour Deptt. is good, then you can mark a CC of the actions being taken to the ALC / Labour Inspector.
8. If there is a large exodus of employees from your company to a particular company, then you may also take up the matter with their Top Management / HRD.
Going Legally against an employees MUST be avoided as far as possible, except, of course, Criminal cases.
THANKS & GOD BLESS.
Maj Sandeep Sahni
Plant HR Head
Jindal Tubular (India) Limited
From India, Pune
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