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.)


  1. Hi,
    I find your post very informative. However I have a slightly different question on the same matter.
    I have recently received a mail from one of my previous employers regarding recovery of bonus amount paid by them to me. Since I had resigned from that company 2 years back and have already received my experience letter and full and final settlement letter(i received it after 3 months of my relieving as per standard procedure in the company), I need to understand what actions can he company take in this case.
    It is notable that the amount paid to me as full and final included the bonus amount and was given to me as a settlement 3 months after my relieving. Do I really owe the company any money legally?


  2. nice article :) Thanks.

    Once question, I worked for a company for 1 month and then left ( reson: they made me work day and night :) hck ). I resigned and worked there for 14 days. Now they want me to come back and serve notice period or else they will take legal action ( whts tht ? ).

    The thing is, as I have worked only for 1 month and few days so I don't need the releiving at all. Would you please tell me, what legal action they are talking about.