• Financial loss due to employee

One employee joined us on 18th March 2019 & he put his papers down on 8th April 2019. 

Terms & Conditions as mention below. 

Probation period will be 3 months. During probation notice period will be 30 day. After completion of probation notice period will be 60 day.

We deploy him at our valuable customer on 1st april. He resign on 8th april. We ask him to serve notice period. He serve his notice period. 

But due to this we loose our customer & we had a financial damage of Rs. 10 lacs to Rs. 12 lacs. 

We ask client to pay for 1 month of his employment. Client said that he was not doing work during his notice period. Due to this lose management discussed not to pay this full & final. Bcoz company loose his client & big amount of financial lose. 

Now that employee sent a legal notice to us. Need your advice & help. 
Thanks in advance.
Asked 2 years ago in Labour

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13 Answers

You can deduct the salary in lieu of notice period and do full and final. But if you want to contest then you can contest by not paying the same

Prashant Nayak
Advocate, Mumbai
25386 Answers
65 Consultations

4.4 on 5.0

You are under obligation to clear his dues if he have completed the notice period.

You cannot put blame of your losses on your employee if he have given you notice then you should have appointed some other employee with that client.

Mohit Kapoor
Advocate, Rohtak
10688 Answers
7 Consultations

5.0 on 5.0

Employee has served one month notice period as per terms of appointment letter 


2) you cannot claim loss suffered by you from the ex employee 

Ajay Sethi
Advocate, Mumbai
85547 Answers
5730 Consultations

5.0 on 5.0

You cannot expect the employee to render best services during notice period. 

Since he had already put down his papers,  your expectation from him during the notice period especially while dealing with sensitive issues of the company cannot be a wise decision. 

Legally you cannot hold him accountable or responsible for the loss that company suffered. 

Hence if you want to avoid litigation and further loss due to legal case,  better arrive at an amicable settlement because you cannot deny the F&F settlement that is due to him. 

T Kalaiselvan
Advocate, Vellore
75676 Answers
1313 Consultations

5.0 on 5.0

See since the notice period as per the agreement was served losing a client cannot be criteria to.deny full and final settlement. The employee can file petition before court recover the amount along interest.

Shubham Jhajharia
Advocate, Ahmedabad
25518 Answers
151 Consultations

5.0 on 5.0

- You may reply to his legal notice with facts and refusal of salary, even may ask compensation from him for loosing client.



Vivek Arya

Vivek Arya
Advocate, Gurgaon
741 Answers
6 Consultations

5.0 on 5.0

1. File Civil Suit against the Employee for the losses suffered by co., due to his negligence & deficiency.  This should be supported with all relevant documentary evidences, statement of the client and proof of losses suffered due to the apathy of the employee.  Probably the employee will come down for settlement.

2. Note that you are liable to pay him all his dues upto last date of actual day of duty and you will not be able to circumvent the same. You can make him go to the labour court and settle over in labour court, which is more recommended, to create documentary evidences against the employee.

Hemant Agarwal
Advocate, Mumbai
5598 Answers
25 Consultations

5.0 on 5.0

After resignation employment relationship ends. 

Employee shall be liable to pay up for unserved notice period if sny.

Kallol Majumdar
Advocate, Kolkata
2800 Answers
8 Consultations

5.0 on 5.0

Company can reply to employee notice that he is not eligible for full n final payment instead he had to repay the loss acured in his notice period to bear it.

Mention that he couldn't be relieved from company unless this explanation of loss has happened and how he is going to compensate.

Ganesh Kadam
Advocate, Pune
12219 Answers
167 Consultations

4.9 on 5.0

Hi,it is advisable to reply to the legal notice on merits ,stating the terms of the employment bond ...

Hemant Chaudhary
Advocate, Gurgaon
4617 Answers
58 Consultations

4.9 on 5.0

Responsibility of the company management to look after the life is performing during the notice period in case it is not done so the management is responsible for that and you will be liable to pay this final settlement of the employee the second thing is that employee has followed the notice period requirement as laid down in the appointment conditions so you cannot put the burden of loss on the employee resigned and you have made the alternative arrangement with the client to handle the work properly if there is any payment denied by the client it is the responsibility of the organisation and this is to be dealt with the  terms of contract with the client you cannot make your employees scapegoat for any mis management that is happened with the company.

please remember to rate this answer if you like it

Vimlesh Prasad Mishra
Advocate, Lucknow
6829 Answers
23 Consultations

4.9 on 5.0

employer will not easily be able to hold an employee to account for negligence or even intentional actions which cause the damage or losses.

Mohammed Mujeeb
Advocate, Hyderabad
19012 Answers
31 Consultations

4.5 on 5.0

You can send reply to for demand of damages done cause of him. Salary adjusted and demand for rest amount.

Yogendra Singh Rajawat
Advocate, Jaipur
21462 Answers
31 Consultations

4.4 on 5.0

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