Rapid attrition rate in today’s era often makes me wonder: while unemployment still remains a big concern for our economy, many of us simply lose the value of the job right after we get one.
Organisations throughout the country are witnessing employees quitting work, avoiding their applicable notice period. This, many a time, turns out to be a huge inconvenience for businesses, apart from being a breach of contract. To cope with the pressure, a company may even hire temporary staff or burden the present staff with to work overtime. And if the vacant post is one that requires skills, problems may become more complex.
As per the law of the land, an employer cannot physically force an employee to show up to work, even if contract binds him to do so. According to the Specific Relief Act, 1963, a contract of personal service cannot be enforced. Such being the legal position, the best course of action is to send a legal notice to the absconding employee, claiming unserved notice/notice pay, damages, compensation for losses caused, etc. One may even file a civil suit. Though, in practice, this exercise may consume time and expense, it creates an overall deterrent in the establishment.
A company’s reaction to an employee leaving prior to the completion of their contractual notice period should commensurate to the impact it has on the business. Employees are contractually bound by terms of contract. Therefore, it is advisable to keep contracts well-defined. The clauses may include period of notice/notice pay, amount of damages and compensation, any money spent on training, etc. Amounts mentioned should be overall comparable to the expected impact and compensation payable to the employee.
It is also important that the provisions of contract are rationale, else they may be held to be void if tried in a court of law. This is relevant from the legal angle as well as from an organisational perspective. Tying staff into a role, which they do not want to continue, may result in poor performance and affect company standards. Also, binding staff into a long notice period may lead to bald excuses such as suffering sudden ‘illness’ that can conveniently last up until the notice period. Further, while drafting such clauses one must be fair. Such as expecting an employee to serve notice, but keeping nil notice period compliance by the company can be said to be arbitrary. Since employer would obviously like to watch the employee’s performance and then conform his employment. Therefore, an appointment letter may state nil notice during probation period and a defined notice duration from either side pursuant to confirmation.
With the changing economic scenario, it is incumbent that the legislature provides for such issues. While there are several provisions that come to aid of employees, especially workman-level ones, upon termination—such as compliance of retrenchment laws, exhaustive enquiry prior to punitive dismissal, payment of compensation on closure, etc.—when it comes to the personnel quitting without serving due notice, there are grey areas and lack of clear-cut provisions. In practice, upon termination of an employee, the employer is called upon to justify the action. At the same time, if it’s the employee who quits without serving the agreed contractual period, it is once again the employer who is initially required to discharge the onus justifying the losses caused in case any claim for damages is made.Since breach of contract has now become such a routine, it is essential that the law caters to this issue. Stability in organisations is a sine qua non for building a developed and sturdy country. raavibirbal@gmail.com