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Prakash   12 May 2021

Instant suspension of employee

In an unlisted Public Ltd Company, employee is found creating bogus bills and not accounting the money into company's accounts. Collecting GST and not paying to Government.
Can MD suspend that employee instantly on revealing the misconduct and misaapropriation.?

Whether breach of trust, cheating, forgery and misappropriation are relevant here..?

In a Kerala scenario.

 2 Replies

Sankaranarayanan (Advocate)     12 May 2021

Yes the management found misconduct by the employee then it can suspend the employee.

Based on the inquiry with evidence of record the management can initiate further action 

Pradipta Nath (Advocate)     12 May 2021

No the MD be what amount of irregularities from  the employee cannot terminate instantly. Though he can suspend him!

Yes breach of trust, cheating, forgery etc etc are relevant in this scenario and can be initiated in the criminal court of law by the Company.

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