Employee threatening to take legal action

Hi,

I need urgent help!

An employee was terminated in the month of August because her behavior towards the team was rough and argumentative all the time, which was bringing down the morale of the team and affecting the work process. The employee had served the organization for merely 40 days. Even after discussions, she could not mend her attitude towards work and team members, and I received numerous complaints from the team stating they weren't willing to work with her. Therefore, we decided to discontinue her services and sent the email on 24 August confirming the discontinuation, to which she agreed and replied.

In the email, we informed her that the Full and Final settlement would take 30-40 days, despite our policy stating it would take 45-60 days. We intended to initiate her Full and Final settlement promptly, but unfortunately, the company is facing financial issues, causing a slight delay in clearing her dues. However, we made partial payments as and when possible. Last Saturday, we completed her entire payment with compensation for the 30-day delay, considering 60 days as the maximum period as per the policy.

During her probation, she took two half-days, equivalent to one non-paid casual leave. Consequently, one day's deduction was made in her settlements. Despite her last day being 24 August, she claims it was the 26th, though we have evidence to the contrary. She is also demanding extra payment to cover the entire 30-day period in the settlement and rejects the compensation we offered, deeming it insufficient. Since her termination, she has been threatening legal action if she is not paid extra.

Even after settling the dues correctly, including all days worked without deductions except for leave and PT, she is demanding full payment, threatening legal involvement if her demands are not met. This marks the 5th or 6th time she has threatened legal action.

I am seeking advice on how to handle this situation as I believe no mistakes were made on our part, considering we have paid her dues accurately, except for the unfortunate delay, for which she has already been compensated. It appears she is needlessly prolonging the issue.

Thank you.

Make a worksheet of payments. List out attendance records, including the date of leave, etc. Date of payment, type of payment, and amounts can be listed along with the cheque number or NEFT transfer details. I hope you followed the termination process properly. Do not succumb to her threats of legal action. Keep your facts and figures ready and authenticated for dealing with legal matters. When writing letters or emails to her, keep them minimal and factual. Do not make any admissions regarding delays or fund shortages.

Sure, sir. Do I have to keep responding to her, or should I just have these responses ready and leave them there? I feel that we will be unnecessarily involved in these matters which are not required. I respond to her, and she continues to repeat the same thing. Do you think it's better not to reply to her?

One simple reply with basic figures and dates of payments can be given to her. Don't keep replying and adding to correspondence. Calls should also be kept business-like and short to avoid recording. Finally, do not be bogged down by one ex-staff. It is all part of normal business life.

Dear Aishwarya,

Please confirm that you have ensured the following:

1. Her termination is done strictly in terms of the probationary appointment letter, which means you have quoted the termination clause in the letter with the due notice period if it applies, and the termination is simple without alleging any misbehavior.

2. In case of termination, F&F settlement is to be made on the next working day, and your policy of 60 days runs counter to the legal provision. You have faulted here. But while accepting F&F settlement, if it is stated that she has no claim against the company, then it is a point in your favor.

3. Besides, you have walked the extra mile by giving her additional salary to compensate for the delayed settlement, which is also a point in your favor.

4. While her threat of legal action has little merit if you have ensured point 1 above, it has only nuisance value if she drags you to court.

5. Her demand for payment up to the 30th is baseless, but I would advise you to see if you can meet it if the matter gets settled amicably, as you have already considered giving her extra payment due to delayed F&F settlement.

If not, then don't enter into any written communication with her hereafter and let her do whatever she wants to.

Regards,
Vinayak Nagarkar
HR Consultant

Hi Vinayak Sir,

The termination clause wasn't on the appointment letter but is stated clearly in the policy under the section of the probation period, which is duly shared with all employees and was also shared with her.

Regarding the second point, yes, after termination, we have to clear the F&F on the next working day. However, since the company was running short of funds, we could not release it the next day itself. We have informed other candidates as well that it will be compensated within the stipulated time.

No, sir, we cannot pay her extra as per her demand. We have compensated her for the number of days she has worked. We have paid her what she deserves, and we cannot pay based on her wants.

I did not encourage any further communication except for sending a reply email with proofs of her entire work history with us, as mentioned by Mr. Nathrao. That was my final response to her. She claims it's unfair, stating she extended her work and did overtime that we did not ask for. She failed to meet deadlines accurately, and now she's blaming us for it.

This scenario has taught us a valuable lesson to further enhance our recruitment process and hiring strategies.