Tuesday, September 1, 2009

Recovery from Ex-employees

After full and final settlement of an ex-employee, many a times there is recovery from him/her. Some times when the amount is negligible and we can let go of it. But sometimes the amount can not be ignored. In such cases employees go absconding, don't pick up your calls or reply to your mails. We only sit waiting for the mails/ cheques/ response and they never come. How to deal with such cases? Are there any agencies doing such a work for business recoveries? Kindly guide.

I am confused how can there be notice period recovery for absconding employees. In most of the organisation when employee is absconding then HR will follow due procedure and terminate the employee and issue voluntary absconding letter. In this case there will be no notice period recovery (organisation is terminating employee because employee lost lien over job) and HR will not give reliving letter.

Now if employee resigns from the jobs but do not serve notice period. Then at time of Full & final settlement HR will know (through procedure & system of getting clearance certificate from all the departments) that there is recovery and reliving letter will not be issued till all due are paid. If employee require (most of employee require) reliving letter and positive feedback while PE check then he will clear dues.

It is not advisable to use agents for recovery because it can create legal issues and same time organisation image is on stake. If organisation want to recover money from employee than it should follow legal procedure. I will suggest if you are having lots of resigned recovery cases then check your policy. Might be your notice period duration is not reasonable. (It is found that if for entry level notice period is high than chances of recovery are more because profile do not justify long notice period.)

Resignation submitted after Last date of leaving

Please give you suggestion on, if employee is resigning after 2 months from his last date of working or date of leaving due to any reasons. While writing your suggestion please mention the reasons also.

At the time of exit of employee from the organisation two dates are very important, they are DOR (date of resignation) and DOL (date of living also known as last working date). DOR should be before DOL if it is not then most of the organisation consider DOL as a DOR. (For processing full and final settlement DOR can not be after DOL because on the bases of this date we will count notice period. if DOR is after DOL that means employee had not given notice period)

Now question arise How DOR can be after DOL? In most of the cases employee absconding from work and after sometime he send resignation letter, employee was on leave and insist of joining back he send resignation letter etc. and till that time HR had not taken action against employee.

Now coming directly to your question--If employee is resigning after 2 months from his last date of working or date of leaving due to any reasons? Whether employee can resign after 2 months of DOL will depend upon case to case and reason of delay. Most of the organisation do not accept resignation letter after such a long time. They have set procedure by which they will terminate employee and send voluntary absconding letter (in absconding case). Some how if HR accept the resignation letter (Due to any reason) then he will take DOL as a DOR and process full & final settlement. If you put DOR after DOL then it can create practical and legal issue.