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Ankita1001
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I am little confused about this -

The person who was terminated because of the theft issue and the person who resigned. Are they same or they are different?

2ndly as is suggested by all, when you or your auditor found a mismatch and thought it was theft did you do proper enquiry to find the terminated person actually guilty before you terminated him/her?

3rd - if the resigning person and terminated person are not same, why would someone wish to resign his/her job only because one of his/her co-worker is into some issue with the company? Has s/he stated the reason for resigning.

Even after this it is not clear what the actual prblem is. Sure we all have interpreted it in our own ways, but is it fair? Just as you said those supporting employees without the knowledge of actual happening supported a wrong one... similarly it might so happen in the lack of the actual scenario, someone might just give you an advice which might not be right for your scene.

Now to your problem -

You would have to take the case seriously since it is routed through labour office. If they've called you to meet, please go ahead and put forth your points and he shall do the needful.

If there is some other notice, kindly share so that seniors can advice.

Future note -

Sure we have a policy to terminate on immediate grounds in case of gross misconduct. But just on the basis of gut-feeling one can't terminate anyone. Even if there are proofs, there has to be atleast an enquiry round enabling the guilty to explain his/her point. Without that if you would terminate, it would actually have some or other implications.

From India, Mumbai
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