Resigned but Marked Absconding? Legal Rights and Solutions for Employees

A troubling trend is emerging where employees, after submitting their resignation, are wrongfully labelled as absconding by their employers. Instead of honouring the resignation and processing the full and final settlement, some companies adopt dubious practices. These include issuing show-cause notices, continuing to mark the individual as an active employee, and depositing minimal amounts into their EPF account to keep them on record. Such actions not only tarnish the employee's reputation but also complicate background verification processes and may lead to accusations of dual employment, especially if the employee has already joined a new organisation.

1. Submit Resignation in Writing

Always ensure your resignation is submitted in a written format, as this serves as a tangible record of your intent to leave the organisation. Verbal resignations, even if communicated to your immediate manager, can be denied or misrepresented later. The best practice is to use email, which creates a timestamped record of your communication. While drafting your resignation email, request a “read receipt” to confirm it has been acknowledged. Additionally, follow up with a polite reminder if there’s no response within a reasonable time frame. This minimises the chances of disputes later.

2. Obtain Acknowledgment for Returned Company Assets

When returning company-provided assets, such as laptops, phones, access cards, or other materials, ensure you receive an official acknowledgment of their return. This acknowledgment can be in the form of an email confirmation or a signed physical receipt. It’s essential to conduct this handover process in person, if possible, and involve the HR or admin team. Retain this acknowledgment as proof to protect yourself from any claims of missing or damaged property, which could be used to withhold your dues.

3. Update Your EPF End Date

One way to safeguard yourself from potential misuse of your Employee Provident Fund (EPF) account by your employer is to update your EPF end date directly on the official EPFO portal. This action helps terminate your association with the company in the EPF system, preventing employers from continuing minimal contributions to keep you on record. Regularly monitor your EPF account during and after the resignation process to ensure no unauthorised transactions occur. This step is crucial to avoid issues such as dual employment allegations and for a smooth transition to your next job.

4. Respond to Absconding Allegations

If an employer falsely labels you as absconding, it’s vital to act quickly and decisively. Start by responding formally through email or a legal notice disputing the claim and requesting all evidence supporting the employer’s allegation. Keep your communication professional and factual. Engage a labour law consultant or lawyer to assist in drafting your response if needed. This helps demonstrate that you are serious about defending your reputation and that you won’t accept wrongful accusations passively.

5. Consult a Lawyer

In more severe cases, such as when an employer demands damages, files legal proceedings, or refuses to issue relieving and experience letters, consulting a labour law expert is essential. A lawyer can guide you on the best course of action, including responding to notices, initiating arbitration, or pursuing legal remedies under labour laws. Having legal representation ensures that your rights are protected and that you are equipped to handle any complexities arising from the situation.

6. Conduct Thorough Documentation

Maintaining a comprehensive record of all interactions with your employer is critical during the resignation process. This includes copies of your resignation letter, acknowledgment emails, handover documents, and receipts for returned assets. Additionally, document any verbal interactions by summarising them in follow-up emails. These records serve as evidence in case of disputes and help build a strong case if legal action becomes necessary. Being organised with your documentation can save you time, money, and stress in the long run.

Conclusion and Legal Recourse for Unfair Resignation Practices

Navigating the resignation process can be challenging, but by following the recommended steps, employees can protect themselves from unethical practices and safeguard their professional reputation. Proactively addressing potential pitfalls and staying informed about your rights ensures a smoother transition and minimises risks. Employers who engage in dubious practices, such as wrongful absconding claims or withholding settlements, may face serious repercussions under labour laws. Employees should feel empowered to assert their rights through appropriate legal channels when necessary.

For employees subjected to unfair treatment during resignation, several legal remedies are available. These may include:

1. Labour Laws and Regulations: In India, the labour and employment landscape is governed by a complex interplay of central and state laws. The specific laws applicable to an employee depend on factors such as the nature of the organisation, the industry, and the state or territory where the employment takes place. Hence, it is crucial to familiarise yourself with the specific laws applicable to your employment situation to understand your rights and entitlements.

   
   

2. Filing Complaints: Employees can lodge complaints with labour commissioners, labour courts, or other statutory bodies responsible for addressing employment disputes.

   
   

3. Employment Lawyer Consultation:  In cases of financial loss or reputational damage, employees may pursue claims for compensation or damages against their employer. Engaging an employment lawyer is essential for expert advice. They can assess the situation, assist with documentation, and represent your case effectively in legal proceedings.