What were the duties of the employee?
For how long was money of company not deposited to the bank a/c of the company?
Has the company kept any security deposit/fidelity bond since he was handling cash?
First work out how much money was to be deposited and quantify the amount .
The police while accepting the complaint is going to ask for proof that employee was holding ---- of company funds/collections.
Conduct an inquiry(exparte if required) to determine amounts held with employee and for termination of service due to theft and absconding from duty.Send copy of notice of enquiry to his registered address by Speed post and also by SMS on declared mobile number so that employee cannot claim lack of knowledge of enquiry.
4th December 2017 From India, Pune
I am very interested to know more about Fidelity Bond.
Have you done it in your organisation.
If so please share some details
5th December 2017 From India, Mumbai
I had taken fidelity insurance on the manager of my housing society who used to collect monthly Charges from all owners for monthly society charges.
The company will lay down certain conditions on which they issue Fidelity bond.
It is worth taking such bonds.
5th December 2017 From India, Pune
This is only an assurance for the employer's money.
Employer's liability of checking the employee's background comes into picture in these kinds of situations.
It is better to take employees after due verification and having thorough checks,beyond taking a Fidelity policy.
6th December 2017 From India, Hyderabad
However I am still having a query that if the money can be recovered from the salary or other employee dues besides EPF then too can the company lodge a FIR.
The management is concerned that if such theft happens and all the company does is recovery from the absconding person it may start a nefarious practice among other employees.
As for background check we do a through background check and in the case in question the employee was with the company for the last 2 years without any negative feedback or report.
Please suggest the next best course of action as the accused employee has also declined to accept the show cause notice sent to him by speed post.
6th December 2017 From India, Mumbai