Sometime back I helped a junior employee of company by giving him 10K as loan on returnable basis. When HR come to know of this HR say that I am doing money lending business. I show my account details and they come to know nothing is fishy. Now they put allegation on me that i dont follow the code of conduct that says if i give or take money from or to any employee I should bring to the notice of my reporting manager.

I told them i have not received any code of conduct but HR say that it is stuck on the notice board in common area and if i dont see it that is not HR problem.
I also come to know that they want to sack me for such a small thing by saying i dont follow code of conduct.
What do i do - should i resign or wait for them to sack me then go to labor inspector and complain against company.
From India, New Delhi

Dear Sampat,
Had you reproduced the relevant clause of the Code of Conduct, it would have been easier for us to give a proper response.
Giving some small amount of money to a friend who happens to be a colleague as a hand loan cannot be money lending or usury to warrant disciplinary action by the employer. When your HRD is known to be so strict and the particular HR person is such a loyal watch dog of compliance with the Code of Conduct by all and sundry, what prevented you from intimating the fact? I don't think this a proper reason warranting the extreme punishment of termination of any individual's employment. What about the gentleman who borrowed the sum? Was he also served any such notice?
From India, Salem
Under the employer roof and the employment times , personal discussions should be avoided, and if you have landed the money, how it gone to the HR?

Now your so called friend has gone to HR or anybody elese like you for money, saying that he has to repay you, and the chain of the story is the issue of SCN for break of code of conduct.

Sir
The clause is below:
In the event of any favor being received or extended in the context of an emergency (e.g. medical emergency), the event of such a favor being received or extended is to be brought to the notice of his duty manager by the employee.
The clause is in code conduct I did tell my duty manager..HR found out now after my life.
He terminate me on monday I not going to work so.
what to do advice sir.
From India, New Delhi
I think you have left out the opening part of the clause for it seems very vague.
Precisely speaking, the act of money lending as well as borrowing among the employees within the premises of the establishment can be prohibited by the employer. Such an act done by the employees outside the zone of their employment that too out of their personal acquaintance or friendship can not be questioned by the employer as a subject-matter of his disciplinary control over them. Certainly the inclusion of such a clause in the code of conduct can not be a proscription on borrowing or lending by employees outside the sphere of their employment among themselves as ordinary members of the society. The actual reason for your termination may be something else for I don't want to underestimate the reasoning capacity or common sense of a HR.
Better make a personal representation to the C.E.O of the establishment.
In the event of such an appeal proves to be futile, raise a dispute u/s 2-A(1) of the Industrial Disputes Act,1947 if you were a workman; if not file a Civil Suit against the management against wrongful dismissal and claim damages.
From India, Salem
Dear Colleague,

Even going by the relevant clause of COC , giving or receiving monetary favor is not prohibited. Only thing is it is to be informed to the reporting manager which you have failed to do. This is very minor aberration and the punishment of termination is out of proportion and unwarranted for such lapse.

You make written appeal to the CEO, as suggested by Mr Umakanthan Sir, apologizing for your minor lapse, and request him to take you back in the service.

If it is not heeded, knock the doors of legal remedy by engaging good labour lawyer.

The law is on your side and sooner or later win is yours.

Regards,

Vinayak Nagarkar

HR- Consultant
From India, Mumbai
Dear Sampat,

Is there any code of conduct in your establishment which disallowed monetary helping within the employee? If no then your management is biased and somebody in HR is playing foul game or the person whom you helped might have made some complaint.

Forget about your code of conduct which is placed in notice board(conspecious place) but is there anything in your appointment letter specificly tells about COC. Your HR is wrong, it is always the copy may be of code of conduct or policy or SO should handover to the new employee on day of joining, not that one would go in search a notice board around the premises.

In my suggestion you are well in a place to challenge if they terminate you. You should remain ready to teach lesson to your HR by challenging your termination, in simple sence one can not sack or terminate one as & when they wish.
From India, Mumbai
Dear Sampat,

I manage HR for an MNC and have come across many cases of money lending amongst employees; I choose not to intervene beyond counselling upon complaints unless it hampers the office environment. The only time i acted on such an issue was when two employees got into a fisticuffs over a money dispute, one of them was seriously injured. So we had to terminate their services for "violence" at workplace.

I really dont see anything wrong in it, unless we are dealing with serial debtors or lenders earning an interest from fellow colleagues. In case the charges on you are not the former or latter one, you can approach the management for a fair representation or seek other available remedies as suggested by respected shri umakanthan ji.

Regards
Rahul Chhabra
From India, Delhi
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