VeronicaVershache
2

Hi All,
we monitored one of the employee for a week who was working against the interest of the company .Which included using company's infrastructure and bidding on the Projects on Elance /ODesk/guru for individual projects.Interacting with clients in the office premises.
We have ample avidance and the screen shots for the same which proves that this action was being performed by them
Can any one suggest whether we can take any legal action against him or not.And if yes what it could be.
It will be really great if some one can suggest me regarding the same.
Looking forward for the kind response from your end.
Thansk
Veronica

From India, Lucknow
archnahr
113

Hi Veronica,
The answer lies in the appointment letter given to him by the company. if you have a clause which mentions that, "an employee while in service will not engage in any other activity or profession of any nature, which is detrimental to the interests of the Company. If they are found to be holding any interest in any other business without the Knowledge of the Company, it will be treated as misconduct and necessary disciplinary action will be initiated against them and the services are liable to be Terminated".
If such clause is there then you can terminate the services.
regards,

From India, Delhi
vikash1017
5

HI Dear,
As archana said that if you have been mentioned the clause in appointment letter (dabble employment )you can take Hard Decision against him.
But my opinion is quite deferent.
before comes to any decision first you serve show Cause Notice / Warning letter and warn him or her for the same. if he again start to do the same things which is against the company interests during the working hour, take an inquiry and can dismiss him without giving any prior NOTICE.

From India
boss2966
1166

Dear Veronica
Here in this case my opinion is that You must call the concerned staff and explain verbally in front of any management staff, about his / her misconduct/act which is against the company rules/norms. Ask him/her about the reason to do so. Make proper documentation to that effect with the signature of the concerned at all the papers prepared and further serve the Show cause notice. If you have not received any reply or the reply received is not convincing the management/HR Team, then proceed with disciplinary proceedings as deemed fit.
But if you terminate the concerned prima facie, then you will have to face unwarranted and unwanted legal proceedings (which I felt waste of time), and further if he got terminated also he will have the fear in his mind that he had signed all the papers and the company is having all the proof and records for his termination to proceed legally.

From India, Kumbakonam
archnahr
113

Bhaskar and Vikash,
If we have this clause mentioned in appointment letter and enough evidence to show to the person that he has been involved in other business or activity, then we can terminate him/her without any show cause notice and there would not be any legal complications.
The care needs to be taken in showing all the documents and records of him/her being involved in any such activity.
Regards,

From India, Delhi
meenakshi.aggarwal@videocon.com
HI,
The point of clause is perfect suggestion. As per my knowledge most of the companies have this clause in their appointment letter, if u have, thats perfect, but it doesnot mean that u directly terminate that employee, first issue a warning letter stated all the matter and if still he continous than company has right to terminate this type of employees.
And last thing, there is no harm to add that clause in the appointment letter.

From India, Gurgaon
boss2966
1166

Dear Ms. Archana

Eventhough there is a clause available in the offer of employment letter and in appointment letter issued to the staff concerned who indulged in such activities which against the company's insterest, if we do such proceedings for 2 or 3 days and terminate him/her from the job, then he will think 1000 times before proceeding to legal remedy.

But as said by you eventhough you have the strong evidence and if you directly terminate him by showing the evidence to the concerned and throw him out will give him a chance to file a suit in appropriate court.

Here eventhough everybody aware that he cannot win the case, but he can drag the company to court and keep the HR people engaged for months together for preparing the reply to court notice, written statement and appointing the legal advisor or counsel for plead in court.

Further there are some chance of reinstatement of the terminated employee if the same is erroneously proved that the documents provided by the company is fabricated and not original then it will tarnish the image of the company in public.

So better without informing the final decision about termination, we can call on him and explain him about the disciplinary action and issue of show cause notice and finish all the formalities within 2 to 3 days will make us feel tension free.

Here I am disagreeing you not because of intending to hurt you or anyone's feeling but to explain the probable scenario which may take place.

From India, Kumbakonam
archnahr
113

Don't worry Bhaskar, I understand that people can disagree on this forum also so i won't feel hurt and would not take it personally too.
I actually admire the way you cleared it...i think i agree with your thing...:)
thanks!!

From India, Delhi
sanusoman
2

The principles of natural justice should be followed while taking disciplinary action against any employee.One of the basic principles of natural justice is that the delinquent employee should be heard before he/she is punished.

The employee who is alleged to have committed any misconduct warranting punishment should be served with a charge sheet/charge memo and his explanation sought.If the explanation given by the employee is found to be not satisfactory, then a domestic enquiry can be conducted into the charge; and based on the findings of the enquiry officer, second show cause notice should be issued proposing punishment and asking the employee to explain why the proposed action should not be taken against him.On receiving the reply to the second show cause notice, the disciplinary authority can either confirm the punishment proposed or give a lesser punishmnet or drop the proposed punishment.

Summary dismissal without following the procedure mentioned supra, in spite of such provision being there in the appointment letter, is bad in law and hence should be avoided.

In the issue under reference, it is better to issue a warning memo rather than taking the ultimate diciplinary action. And if the same misconduct is repeated, then termination of service could be thought of by following the principles of natural justice.Otherwise, in all likelihood,the decision will be reversed by appropriate adjudicatory forum.

Thanks,

Sanu Soman

From India, Madras
sanjeevlnm
Dear All,
The views of the members are highly valuable but going through the content of the case of Veronica, it can be judged that employee was working against the interest of the company for a long time as several evidence were available with the Company to prove them.
Now, it would be quite appropriate to first issue a show cause to the concerned employee to know the reasons of goining against the interest of the Compnay as discipline is one of the vital parameter for growth of any organistaion.
After receipt of written reply from the concerned employee, if ,in case of unsatisfactory reply management may proceed for conducting domestic enquiry.The whole process will be cumbersome but legally very sound.
Thanks...
(Kumar Sanjeev)

From India, Bangalore
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