Breach of trust and misconduct
Deep Kumar Saha
(Querist) 10 April 2012
This query is : Resolved
Dear Experts,
One of the employee of the Company is found to be involved with the business of the competitor company and providing business to other rival company's by using our specific customer base. Incidentally it has come to our knowledge from some print out where he is placing order on behalf of other rival company and as a result of the same he is not providing any business to the company where he is employed. Further , it is apprehended that the said employee is going to leave our organization as he is withdrawing all his payment and further taken employee loan.
In view of the aforesaid , the company stopped his last month salary for adjusting loan amount and further issued a show cause notice asking for explanation of his unjustified activity.
It is pertinent to mention here that as per term of service he can not be involve with the business of similar nature either in continuance of service or after ceasing to be an employee for seven years.
The company is not having any standing order or service rules except the terms of appointment as aforesaid.
Kindly give your opinion whether the company withhold his full salary towards adjustment of loan and what other remedies are available against such kind of delinquent employee and can company sack that employee without holding any inquiry and the admissibility of the evidence as the documents are print out of his e-mail and the purchase orders are attached to the mail and from the print out , how it can be established that this particular document is attache to the mail.
ajay sethi
(Expert) 10 April 2012
you ahve stated that one of your employeess is providing businness to competitor .
you ahve issued a show cause notice to employee . has he replied to said show cause notice . please note that emails can be relied upon to show that he is hand in glove with your competitors
no employer will tolerate any employee who passes on buisnes secrets or works for competitor . after receipt of his reply issue him a letter terminating his services .
if loan is outstanding you can adjust his salary dues against loan amount .
Deep Kumar Saha
(Querist) 10 April 2012
Thank for your reply,
No he has not replied to the same.
We want to take strict action against him ,so, is there any other remedy available to us?
ajay sethi
(Expert) 10 April 2012
in show cause notice you must have given him time to reply . since he has failed to reply within stipulated period and has not disputed contents of notice you are at liberty to take action .
dismissing him is sufficent . he will learn his lesson in life
Adv.R.P.Chugh
(Expert) 10 April 2012
File a suit against him for breach of contract of employment that enjoined upon to serve the interests of the company and not to harm them. Ask for heavy Damages on the basis of loss caused to your company, after serving a notice.
Emails are certainly admissible in a court of law.
You are within your right to exercise lien over his salary for repayment of loan. However under these circumstances a thread-bare perusal of employment contract/loan contract - nature of his subterfuge, before advising anything concrete.
Feel free to talk !
