Industrial Relations
Sr. Hr Manager
+2 Others

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Hi everyone
Please give the answer of this query..
if any worker found staling things from factory, does management have any right to suspend or what are the other legal rights with management in this case??
in this case which are the legal steps to be followed?
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Dear Hetal
This shows that the security deployed in your factory is ineffective. First of all tighten the security arrangements in your factory and let the security start checking and frisking the workers who goes out. Whoever bringing anything in your factory must inform and register the same with the security about the materials. Then only the security will allow them to take out the materials brought by the staff (including Laptop).
Please install the CCTV Camera and start recording the activities going on in the entry/exit gate and even in shop floor.
If you go to police for complaining regarding the theft, then you will have to pay more cost then the theft materials. Better take a written statement from the worker about his theft and let him ask apologies for the incident and further terminate him by giving all the benefits whatever he is eligible for. If possible send the message to all your group companies not to recruit the same person in any of your organisations.
If the employee is a permanent employee of the company, u can suspend him, pending inquiry & institute a domestic inquiry to probe the incident. Based on the report of the inquiry officer, the mgmt may take appropriate action against him.
In the meantime, u may enlighten us about what product u make, what he was found stealing & what is the appx value of the stolen material, so that members can give u a more reasonable reply to ur query.
Dear Hetal

It is not known whether your factory is covered by the Industrial Establishment(Standing Orers) A ct 1946. If so, Sec.10-A of the Standing orders Act provides for suspension of a workman.If not, your servcie rules must have a provision for suspension.The employer can suspend an employee pending further action like investigation and enquiry.However the right to suspension must have been drawn by an employer either from astatute/ servcie rules/contarct of servcie. Therefore first, ascertain whether there is any enabling provision conferring such right on the employer, in the absence of which, the suspension is likely to be bad in the eyes of law.

Theft is an act which involves moral turpitude and thus can invite suspension irrespective the amount or quantity involved.However the right to suspend cannot be exercised mechanically by the employer.Therefore collect data and evidence before talking a call on the issue.If shifting the employee from his current job and posting him in a non-sensitive job will meet th ends of jsutice and is feasible, you can explore that option also.

The other steps that you need to take are :

1) Inititae disciplinary actin by serving chargesheet on the delinquent emplyee, calling for his explanation about the alleged theft;.

2) if the explnation is not found satisfactory, conduct domesticl enquiry, giving the employee opportunity to defend himself;

3) await enquiry report;

4) If he is found guilty, pass appropriate penalty asper your servcie rules.


Dear Hetal,
Very crisp and practical advice by Mr. Bhaskar. Please ask for the written statement from the employee and based on the statement gien by him, which must also be counter signed by atleast two employees preferably his fellow workers, can take further action of termination.
If he do not accept his fault a proper departmental enquiry will have to be conducted and the management have to establish the theft conducted by him by leading proof in the enquiry.
One more thing which i missed yesterday, please keep the proof of theft in your records very safe even the delinquent employee gives the statement that he has committed the theft and it is counter signed by his co-workers.
I have experience wherein the employee who committed theft resigned and after resignation he filled the case that he is terminated by the management on false ground of theft and management also took his false statement on gun point.
So please in any case keep some evidance with you in case something comes up. In my case the employee raised the dispute after a year of his termination. So keep the evidance for atleast 3 years.
Be safe and install security cameras and do what Mr. Bhaskar stated in his post.
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