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BASAVARAJAPPA.C (HR)     28 June 2011

Termination of Manager without domestic enquiry

Dear Experts,

We have an employee working as Manager constructions and  he opened a civil contracting small firm  in his  wife name. Can we terminate him because he would have given lot of support in terms of drawings, and other direct and indirect supports. However, we do not have any documents to prove except he has given a letter stating that this was informed to my reporting Sr.Manager.

Further, we have his mobile bills where in he has spoken to his wife and her employees every day quite often during his workign hours.

Kindly advise on the following.

1. Whether we can terminate without giving notice period salary and gratuity

2. Charge sheet and domestic enquiry is required or not required.

3. On termination, whether he can file a case in Civil court.

Thanks & Regards

B.RAJ

 



 9 Replies

H. S. Thukral (Lawyer)     28 June 2011

1. You can terminate his services as per terms of the contract, without making any allegations in the termination letter. Notice if provided in the contract would be required. Gratuity if he completed 5 years of service is payable 

2. In termination simlicitor no charge-sheet or inquiry is required.

3. He can resort to any legal action but chances of his succeeding are few.

Kumar Doab (FIN)     28 June 2011

You can raise your objections/observations e.g. his mobile bills and his phone calls to his wife and her employees, and give him opportunity to clarify. Without charge sheet and inquiry if you pass termination order it shall be denial of natural justice. On what grounds you shall justify denial of notice pay, and forfeiture of gratuity.

He can challenge the termination order and seek relief in civil/labor court as deemed fit by him and his lawyers/law firm. A new venture has already been started by his spouse who can support him. He can nurture it in the interim. If termination is arbitrary civil courts may grant the relief sought by applicant, compensation/ reinstatement with back wages........

You have posted that he has informed his reporting authority by a letter. It seems that he has not caused any capital loss or damage to the company.

As HR personnel you should look at the most reasonable and balanced solution. You can explore the option of sitting with the employee with his mobile bills and persuade the employee to quit/resign without any heartburn and financial and legal burden on any party. It shall be better than turning, adventurous, and recommending capitol punishment without any proof and hence for no crime.

 

BASAVARAJAPPA.C (HR)     28 June 2011

Dear Experts,

Thanks for your valuable inputs,

As a further development, this manager has now has given his confession letter for having involved in his wife business and helped her in running the business apart from using one company employee for his wife  business including extending business contracts to her with out the knowledge of the company. However, we are un-able to quantify the actual loss but ther is a loss.

Under thsi corcumstances, can we forfiete his notice period salary and gratuity and dismiss him. Is it proportunate punishment.

Thanks & regards

B.RAJ

V. VASUDEVAN (LEGAL COUNSEL)     28 June 2011

IT would be simpler to persuade him to resign from the job, seeking relieving order without any notice period, on personal grounds. Any exercise to quanity the loss etc., at this stage would invite hassles. In such case, the burden of notice period would be on him and this can be waived on request. However, the gratuity and other dues needs to be settled. 

Vasudevan


(Guest)

Dear Basavarajappa,

1) It is always better to hold a domestic inquiry before termination of service. Shortcuts should be avoided at any cost, as that may result in to a much bigger loss to the organization in any future litigation. You will have to abide by the industrial law and standards for employment and termination of services of employees. So, better you check the terms of his employment that your company stated in his appointment letter. Even if he has given his confession, still you may have to get that proved during independent domestic inquiry, otherwise he can allege that the confession was made under pressure by the management.

2) Must issue charge sheet with reference to his confession letter and instances of his discussions with his wife and employees of the firm of his wife, and get the domestice inquiry process completed before ariving at any decision on the case.

3) He can file a case in the civil court. If no termination is made without holding a domestic inquiry he can be reinstated in service by the court of law and all your efforts to curb indiscipline would be defeated.

 

PS Dhingra

CEO

Dhingra Group of Consultants

New Delhi

dcgroup1962@gmail.com


(Guest)

Dear Basavarajappa,

 

1) It is always better to hold a domestic inquiry before termination of service. Shortcuts should be avoided at any cost, as that may result in to a much bigger loss to the organization in any future litigation. You will have to abide by the industrial law and standards for employment and termination of services of employees. So, better you check the terms of his employment that your company stated in his appointment letter. Even if he has given his confession, still you may have to get that proved during independent domestic inquiry, otherwise he can allege that the confession was made under pressure by the management.

 

2) Must issue charge sheet with reference to his confession letter and instances of his discussions with his wife and employees of the firm of his wife, and get the domestice inquiry process completed before ariving at any decision on the case.

 

3) He can file a case in the civil court. If no termination is made without holding a domestic inquiry he can be reinstated in service by the court of law and all your efforts to curb indiscipline would be defeated.

 

 

PS Dhingra

CEO

Dhingra Group of Consultants

New Delhi

dcgroup1962@gmail.com

Sudhir Kumar, Advocate (Advocate)     18 February 2013

It apperas you have specific charges against him and the charges are already in air. In this case termination without inquiry is likely to be viewed as shortcut of inquiry.

 

So serioursly consider what Mr Dhingra has suggested. 

 

You are also afraid that you cannot quantify the damange suffered.  Yes in case of lack of interity it is never possible to quantify the damange caused or to be caused in future. But it appears that there is a charge of lack of integrity and a confession.  You can proceed.

Kumar sanja (employee)     19 February 2013

Dear all,

 

if the manager is on probation or temporary employment like consultant he can be summararily packed up.

if he is a permanant employee  they are two option

1) whether he is a workman as per duties done by him --> enquiry is must he can resort to ID ACT 1947

2) if he is a supervisor/manager then also enquiry is must and if proved 2% of salary cut is possible that's it. 

remedy for him -> he can file a case under shops and estt act

 

if he is dismissed without enquiry even civil court interfers

regards,

ravi

Sudhir Kumar, Advocate (Advocate)     19 February 2013

I may disagree with Mr Ravi

 

Probation and contract are differnet capacities.

 

here is a specific allegation against him in which he has displayed lack of integrity and the documenttaion is already there for the same.  Probatin clause cannot be applied as a shortcut.  The offence if proved is sufficient forf dismissal.


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