Can We Take Disciplinary Action Against an Ex-Employee for Misconduct?

Hi Folks,

We are in the services industry with branches all over India. An employee is found to have committed an act of misconduct, which came to our attention after his separation from the organization, due to his resignation. Due to the employee not having submitted the 'no due' certificates from the concerned departments/authorities, his final accounts have not yet been settled.

Please inform whether disciplinary action can now be initiated against him by serving him with a show-cause notice and proceeding as per the law. Furthermore, we are certain that he will not receive our show-cause notice, charge sheet, notice of inquiry, etc., and will not participate in the disciplinary proceedings.

Under the circumstances, we would like to be informed of the course of action to be initiated. Awaiting good responses.

Your pal,
Dhinakaran

Dear [Recipient],

If someone has resigned from your organization, what action do you want to take against them? They have already resigned, so what will you gain by taking action against them? You have not cleared their dues because they have not submitted their no-dues certificate from different departments.

The personnel department can obtain a no-dues certificate from different departments, and their accounts can be settled. If they owe something to the company after the full and final settlement, you can ask them to pay. If the company owes them some amount, you should clear their dues. I do not understand the motive behind taking action against them without any fault on their part.

Thank you.
J. S. Malik

Mr. Malik,

Thank you for your comments, which are more based on a general non-statutory basis. The employee's misconducts have been known to us after his severance from the organization. Your suggestion of payment and receipt to him is a general one, which will only make the delinquent employee go unpunished and cause a loss to the organization.

As the HR chief of the organization, I cannot ignore the issue. I am sure some of the HR folks would be more practical and comment on the issue to help me deal with it.

Regards,
Dhinakaran

Dear Dhinakaran,

I agree with Mr. Malik. The employee had submitted his resignation before the company investigated or discovered about the misconduct. Now, it will only be perceived by him and the other employees that your company is trying to shift the blame onto the individual and demonstrate to management that attrition occurred solely due to employee misconduct. This perception may lead to the belief that the company lacks values for its people.

Once again, I wholeheartedly agree with Mr. Malik's opinions and views. This course of action should be considered at this juncture. It is too late for the company to issue a charge sheet. This action should have been taken well before the employee contemplated resignation. In that scenario, it would have been termed as termination.

Dear Dhinakran,

I believe your intention behind issuing a charge sheet and conducting an inquiry on the delinquent employee is to terminate the employee for his misconduct. If that is the case, your objective has been achieved, and you should feel satisfied rather than dwelling on the issue. As the HR chief of the organization, please do not become too egotistical about the matter and ensure to settle his dues promptly unless, of course, the misconduct involves monetary aspects. Be proactive and make sure to avoid being in a similar situation in the future.

Regards

Dear Friend,

Looking into the other side of the coin, you should tighten your systems and processes instead of trying to take action against an employee who has already left the organization. One more point to consider is that when an employee has not completed all his responsibilities, such as completing the No Objection part, why did you keep quiet instead of sending a letter to him and his new employer (if you know the details)?

If you act now, what will be the image of the HR and the organization in the eyes of other employees within your organization? What message are you sending to your employees? It is a mistake on your part and on behalf of the organization. It is time to let go of any ego factors, accept the mistake, correct the system, establish an SOP, and strengthen the system.

With best regards,
Kameswarao

Charge Sheet Considerations

A charge sheet is not actually meant to harass an employee in any manner. It is better for you to issue a charge sheet to him before his resignation. If he has already left the job, then it is not beneficial for either you or him to pursue the matter further. By doing so, you are simply wasting your efforts. It is more advantageous for everyone to work towards a positive cause.

If his conduct has caused any harm to your company, then serve him a demand note with a warning that the losses are to be recovered from his PF, etc., before clearing his full and final settlement. Serving a charge sheet will only complicate matters. It is important to put ego aside and think calmly.