Query
Hello all,

I run a small firm with around 25 employees. Since the nature of the job requires 6 months training period, we have asked all our employees to sign a 2 yr job contract on their first day. Now according to the contract, we are legally bound to provide 6 months job training and revise the salary in every 12 months, and the employee would work with the firm for a minimum of 24 months and in any case he/she can't leave the firm. If he/she does so,he/she will have to pay 80000 INR to the firm as compensation.

Now one person, I will call him Mr. Smart from now onwards, joined our company just before two months and signed the contract paper as others. But just after one month, he started showing his true colors..

1. In November he remained absent for 14 days, without informing the company. The absence occurred in random days, such as 1, 8, 9, 14, 15, 16, 22, 27,28, 29, etc... When the seniors tried giving him warnings, Mr. Smart threatens them saying that even he is aware of law and no law can stop him from taking leaves.

2. The office timing is 9-6. But he always comes to the office around 9.45, in spite of several warnings. The lunch break is 1-1.30PM, but he will always come around 2. When asked, he replies that 30 minutes is not enough for him to complete his launch and he still continues doing so.

3. Started arguing with the seniors and since the seniors did not prefer to get into an ugly fight, they simply took the matter to the management. One from the management called up Mr. Smart and asked the reasons behind all these. Mr. Smart played very smart here, apologized and promised to never do this again.

4. Just after 3 days of the meet with the management body, Mr. Smart came to office as usual (9.45 AM), went to launch at 1PM and never came back that day. Then again rejoined at work after 3 working days.

5. After the above 3 days leave, he was present for 2 days and again remained absent till now (past 2 days)....

In this month, December 2010, he has been 6 days absent (5 absent + 1 sunday)... This is now pathetic..

behind the above scene.. the company spends 2K everyday behind the project that Mr. Smart is working on. Now 5 days leave in this month is causing a straight 10K loss (the loss amount would significantly increase by the end of the month, as we suspect him to be on leave in this manner)...

Trusted sources has claimed that:

So, what can we do now? Does the Indian law allow an employee to stay absent in such a manner, without prior approval? Can the company fire him for negligence at work and ask him to pay the 80000 bond value? Can we move to court to recover all the losses caused from Mr. Smart due to not-approved absence?

since someone is trying to play with the firm's system and rules, firing him won't be the right solution. we want to teach him a lesson by taking legal steps.

Please guide.
11th December 2010 From India , Cuttack

PARTICIPATING IN DISCUSSION:
Malikjs
Service
Dmc123
Associate Consultant
+2 Others

Hi,

Nice case study for future reference also.
My observation.

1. No new employee has a liberty to take leave at their wish. According to Labour laws in the first year he can take up to 12 CL's and 12 SL's only. these also availed upon prior approval from the management. SL's he has to produce documents. Any other leave days are absents your can treat as loss of pay. Please refer you offer letter / agreement if nothing say of about daily wage. you can deduct salary (ctc/per month) like ... salary/25 or salary /20 = Daily wage. daily wage includes your weekly offs. this calculation is as per the provision in Minimum wages act.

2. Have you Issued any Memo? for asking explanation for lates and other issued. if not better issue notice and get return reply to that. if he still continues the same. Issue second notice with financial implications and penalty clause.if still continues you can terminate with reference to notices and ask for the damages.

But,
Before taking any decision think twice.

All leave days are not just for fun.few of them are might have genuine reasons also.

Be positive after all you and me were also employees.

Regards
Ramesh
23rd December 2010 From India , Mumbai

dear sir
in my view
1.As a employer we are not here to teach a lesson to any one.Firing him from job will be another lesson to him.
your company disciline will become mesh if you will continue with such type of person.secondly he is taking too much leave or abstaing from duties
.leave is not a right.so in my view ,you should terminate him immdly.
2.you can not recover any thing from him as mentioned in bond.
2nd January 2011 From India , Delhi

Dmc123 2
Dear Sir,
Please clarify as to what is mentioned in the appointment letter regarding probation. If you have kept him on a probation for 3 months, you can terminate him right away if the appointment letter has a stipulation in that behalf.
11th August 2014 From India , Pune

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