Umakanthan53
Labour Law & Hr Consultant
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Private Consultant On Labour Laws
Riteshmaity
Labour Law Advocate

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Dear All,
In our factory Some Employees involved in chit funds scandals, What says labor laws Regarding this issues.
As a HR Persons How to Stop this process inside the factory, and what necessary action should be take.
plz Guide me to solve this problem,
Regards,
G.Arularasan
8148883009
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Dear Arularasan,
Your description of the alleged act of some of your employees is not clear to me. Is it that they are involved in any Chit Fund business within the establishment or involved in any Chit Fund scandal outside the zone of their employment? Whether the act of money lending to fellow employees as a business in any form including Chit Funds within the premises of the establishment enumarated specifically as a misconduct in your certified Standing Orders?
If the act allegedly committed by the employees come within the purview of 'misconduct'? If yes, then you have to issue warning/ show cause/ charge sheet as per the gravity of the situation. If things do not get resolved, then you have to initiate a disciplinary proceedings against such employees and take necessary action basing on the report of the enquiry officer.
Dear Arularasan,
In all its fairness, a stipulation ' prohibiting the chit fund business' is necessary in the Certified standing orders to dispense with such practice but missing such provision doesn't stop an employer to take disciplinary action against such employees. Employers are at liberty to take action against the employees who indulged themselves in any "private business" within the premises of a factory. A general notice may issued advising them to refrain from such practices.If still they continue with the practice, disciplinary action should be taken against the organiser(s) without any hesitation.
BS Kalsi,
Member Since August, 2011
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