Urgent Help Needed: How to Handle a Contract Employee Leaking Critical Data to Competitors?

Hi all,

Recently, in our company, we found out that a female employee on a contract was selling our critical data to our rival company. Despite repeated warnings, this employee continues to do so. What are the options available to us? Please suggest. It's urgent.

Thanks,
SONAL

Dear,

I think it must be mentioned in the appointment letter that providing company information to others may lead to termination of the service. It is a breach of the code of conduct; no one is liable to provide the company information to the rivals. I think you must initiate the process to terminate her.

Before that, one more thing you may do is give her a warning letter stating clearly that she has been found engaging in such activities, which is a breach of the code of conduct, and she is hereby warned to refrain from such activities; otherwise, she will be terminated from the service. Print it in duplicate and take her signature on one copy. It will be proof of record for the same.

I think it will be helpful for you.

Regards,

Amit Seth.

Hi Sonal,

What Amit has said is right. Providing confidential data to a rival company is a sackable offense and cannot be ignored. You can always issue a show-cause notice, a warning letter, or directly terminate her if the same is mentioned in the company's code of conduct.

Regards,
Chaitali

Hi Arun,

What Amit said is right, but be careful. Unless you have a clear-cut agreement as well as evidence in support, it is very difficult to prove who has supplied the data to the competitor. It's better to issue a show cause stating the breaches committed by the concerned employee and give a lesser period to reply, say three days. If he/she fails to reply, proceed with a domestic inquiry so that the statement of the complaining person shall be recorded. Thereafter, while considering the case and report, there will be evidence leading to the charges which have been proved, making it easier for a person to be dismissed after giving a copy of the inquiry report as well as a chance to explain in person.

Regards,
Arun K. Mishra

Hi,

The first thing you should do is to make sure that she is immediately taken off from the responsibility of handling such data. She should be suspended pending an inquiry. If the data is of a sensitive nature, and if the company is committed to protecting the confidentiality of the information as well as being serious about enforcing discipline, strict action like termination should be taken after following the normal procedure.

Regards,
Naresh Taneja

Thank you all for your valuable advice. I have a few more queries which I will ask one by one.

1) There is a person in our company whose wife is suffering from blood cancer, and he wants a transfer to Las Vegas as well as a promotion. He is already earning about 50 lakh per annum and is at the GM level. His contribution cannot be ignored, nor can the fact that currently, we are not in a position to increase his salary much or provide a promotion. However, we are not rigid on this matter, and I am seeking a middle ground solution.

2) There is a female employee who is requesting maternity leave for the 7th time (unbelievable but true). She has taken several leaves before and now wants her leave to be with pay. While it is acknowledged that under the Maternity Benefit Act, there is no restriction on the number of children one can have, we are looking for a resolution to this issue. What options are available in this situation?

Hi Sonal,

First problem you have mentioned is a problem if we think about it personally with a human touch. But if we see it professionally, it is not possible for the company to provide a promotion or transfer right now. In addition to this, his salary package is very high presently. With due sympathy for his wife, you should help him understand the fact that it is not currently feasible for the company to offer a promotion or transfer. However, he would be given first preference whenever there is a vacant position, especially for a senior position. Alternatively, the company can provide him with leaves for 1 or 2 months for his wife's treatment. Companies generally provide medical benefits to their employees, and as he is in a GM position, his wife would also be covered. The company can provide him with additional facilities to prevent an increase in financial burden.

Maternity leave for the 7th time seems ridiculous. I assume this woman employee is a very old and loyal employee of the company. The company should use its discretionary power this time. Factors such as her designation, performance, and the availability of backup should all be duly considered.

Regards,

Chaitali

Thanks a lot, Chaitali. You have almost solved my problem. But could you please suggest more on the second issue.

What are the immediate available options? The employee has been very loyal to this company.

Hi,

You are saying that she is very loyal to the company. That means she understands her responsibility towards the company. She should be accountable for the same.

You have not mentioned the nature of her work. If it is office work, then you can allow her to work from home (if possible - again depends upon management). There are many companies that do provide these kinds of facilities to their employees, especially to the women employees or employees who are suffering from some illness and are not able to attend the office.

Secondly, you can reduce her working hours. But before deciding on anything, other women employees should understand this exceptional case (7th time maternity leave!!!) otherwise other employees would demand the same, which would not be possible.

And lastly, I would say if she is not ready for the same, then get rid of her. We should trust our employees, but if they betray your trust, then we have to let them go with due respect.

Actually, this issue doesn't have any practical solution. Something could be done through mutual understanding.

Regards,

Chaitali

Terminate her quickly from the service as she is doing wrong with the company. It is also not good for others in the company to know such things, which can easily spread to others in the company. Should take strict action so that no one can think of making easy money or gaining indirect benefits.

Regards,

JIMMY CHAUHAN

Yeah, I agree this issue needs to be tackled through mutual understanding. This employee is posted in New York (we transferred her from India as in India there was pressure from her in-laws to bear a son) and works from home. A real tricky situation. We in the HR department are making faces as the one shown next 🙄. Thanks

Every company shall have Certified Standing Orders in pursuance of the Industrial Employment (Standing Orders) Act, 1946. In case there are no Standing Orders (SO), Model Standing Orders will serve the purpose. In those Standing Orders, there is a chapter called 'Disciplinary action for misconduct.' You will find a list of omissions and commissions that are considered misconduct, for which management may take disciplinary action against the delinquent employees. Passing company secrets is an offense and is also considered misconduct. An employee may be terminated for such misconduct. The steps you need to follow are as follows:

1. First, plant a witness trap so that there is no escape route during the domestic enquiry.

2. Give her a charge sheet quoting the Clause number of the list of misconduct for which action will be initiated and seek a reply within a reasonable period.

3. Report the entire facts to a senior officer.

4. If the reply is not satisfactory, place her under suspension pending the domestic enquiry. The Clause number specifying the misconduct must be quoted, and the suspension letter must be issued by a senior officer.

5. If there is no provision in the Standing Orders, implicate her on similar charges.

6. Start the Domestic Enquiry and follow the procedure for disciplinary action.

Dear Sonal,

For the very first case, first try to gather as much data from other sources to prove that she has committed a breach of conduct. In the first instance, ask her to resign. If she doesn't do that, issue her a show cause notice and seek an explanation from her. Then charge sheet her and again ask her to resign. If she still doesn't do that, terminate her service.

For the third issue, if she is going to have her seventh delivery, you can't really do anything (There are celebrities who still have a larger number of kids). She deserves maternity leave, and you have to grant her that. If she wishes to have that many babies, let her have them. There should not be a problem for anyone. Is it the role of HR to decide how many babies one can have? They have to decide how many babies they want to have. Just grant her leave. Don't use any discretionary power. Don't resort to any means as suggested by others in this discussion.

I don't find a reason to make so much hue and cry about this. Everyone in this world is free to make their decisions.

Regards,

Nilendra

Hi, Chaitali!

I was surprised to see your remarks about maternity leave. Please don't make such comments without knowing the facts. The facts given in the original post are inadequate. You can't determine if the lady was giving birth to her 7th child or if she had medical problems leading to the premature end of the pregnancy due to natural or clinical reasons. I am sure you are aware that maternity benefits are available in cases of 'miscarriages' as well. So please don't think anything is ridiculous unless you know all the facts. And by the way, if the lady is going to be a mother for the 7th time, it is none of your or HR's business.

Hope you will take this in a positive frame of mind.

- Hiten

Hi Sonal,

1) The first problem you have mentioned is a problem if we consider it personally with a human touch. However, professionally, it is not possible for the company to provide a promotion or transfer right now. In addition to this, his salary package is very high presently itself. With due sympathy for his wife, you people should make him understand the fact that it is not possible for the company to offer a promotion/transfer. He would be given the first preference whenever there is a vacant position, as it is a senior position. Alternatively, the company can provide him leaves for 1 or 2 months for his wife's treatment. Companies provide medical benefits to their employees, and as he is in a GM position, his wife would also be covered. The company can provide him with additional facilities so that the financial burden won't increase.

2) Maternity leave for the 7th time is something that some might find ridiculous. I assume this woman employee is a very old and loyal employee of the company. The company should use its discretionary power this time. Designation, performance of this woman, and whether a backup is available or not, everything should be given due consideration.

Regards,
Chaitali

I am getting a feeling that despite concentrating on activities that will present HR in a better light in our respective organizations, we are engaging in unnecessary activities.

Which law in India restricts family size? If someone wants to increase their family size, let him/her do it. HR is not a god and has no right to decide the family size of any person. Let's not try to play god and engage in activities that do not really fall under our purview.

Regards, Nilendra