Facing Legal Action After Terminating Disruptive Employees: How Should I Prepare for Court?

I work in an MNC and I am responsible for overseeing the overall administration of the company. Unfortunately, five of our employees are causing issues. They often try to confuse their colleagues about company policies, bonuses, and leave entitlements. These individuals also frequently create problems and engage in disruptive behavior, such as playing games instead of working when they should be focused on production.

Despite attempts to address their behavior, including warnings and disciplinary actions, the situation has not improved. Recently, these employees have resorted to intimidating tactics, claiming they cannot be terminated and threatening legal action if any action is taken against them.

After one of their supervisors was unable to manage the situation, they were referred to me. I confronted them about their actions and warned them that further complaints would result in termination. Despite this, they continued to disrupt the workplace.

Eventually, I decided to terminate their employment. I ensured that they were paid their outstanding salaries, bonuses, and leave entitlements before asking them to leave permanently. Some of them requested withdrawal forms for their provident fund, which I facilitated.

Due to the absence of an HR department in our company, I am unsure about the proper procedures for appointment and resignation letters. Subsequently, these employees have taken legal action against the company, claiming wrongful termination. The labor ministry has scheduled a meeting to address this issue.

I am seeking advice on how to handle the upcoming court appointment and the possibility of being compelled to reinstate these individuals. I strongly believe that their presence creates a toxic environment, and I am determined not to allow them to return to the company.

Your guidance on how to proceed in this challenging situation would be greatly appreciated.

Thank you for your assistance.

Best regards,
Pawan

First of all, I do not understand how these issues could reach the court. Anyways, there's nothing to worry about much. Prepare a draft and present it in court as a defense. Clearly mention that these are disciplinary actions. Try to gather the evidence, present it all at once, and request the court not to waste its time dealing further with the case. Also, mention that they have voluntarily signed all the documents pertaining to resignation and final formalities. Additionally, produce evidence regarding the warnings given before to correct their behavior, if possible in written form. Once it's already in court, you cannot take any action but to fight for justice. You may also include countercharges against them, which have caused the company to experience work deficiencies, production losses, and a negative impact on the work environment. Demand damages for the same if you are strong enough to deal with the case. Include the legal department in your company, which is capable of handling labor and employment issues and regular formalities.

Conduct Regular Seminars

You must always conduct regular seminars on legal implications, labor laws, employee-related statutory implementations, and the company policies. These sessions can counter the rumors of such undisciplined employees. During these sessions, instruct the employees to share their issues and suggest solutions for an interactive discussion. Conducting these sessions every month or once every three months is better for maintaining a peaceful environment in the company.

Wishing you success.

If your company has a legal consultant or lawyer, discuss with them what actions should be taken. Otherwise, consider hiring a lawyer because you may not be equipped to handle this matter effectively. In court, when dealing with the opposing counsel, having a strong legal representative can be a valuable asset.

Hope you understand what I am saying.

Regards,
Dev

Your problem is very common in the industry. However, you made the mistake of terminating them without holding a domestic enquiry. You should have collected all the reports from supervisors from time to time, built a record against the five workmen, and issued all of them a charge sheet. Now, you have no other option but to reinstate them and immediately start the disciplinary process. After the misconducts are proved in the enquiry, you can issue dismissal orders to them as per the provisions of the law.

Thank you to all for your replies and important guidance. This matter is in labor court right now. Today, I went there to ask for the complaint copy and took it for next week. I have appointed a good and experienced lawyer who is looking after this.

You did not deal with the issue in a foolproof manner. Therefore, engage a lawyer or a consultant who can draft a proper reply and handle the case legally in court. Once they go to court, they must have raised the dispute before the Labour Commissioner. Check all of this.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Dear Pawan, the narration of your case is incomplete. It appears that you have terminated the services of these five employees without holding a domestic inquiry, which may be illegal, unlawful, and unjustified. The ID Act provides for unfair labor practices on the part of the employer as well as the union and workman. The termination of services of these five workmen would not be upheld, and the Labor Court may order reinstatement with back wages and continuity of services. Please seek advice from a lawyer.

Regards,
Avinash Kanoray
HR Consultant
[Email Removed For Privacy Reasons]

What I could gather from your post is that everything was verbal on your part and nothing was on record, i.e., no show cause notice, no charge sheet, no domestic inquiry, no opportunity to defend themselves, no resignation, but just straightaway termination. If no HR department exists, Admin has to play the role of HR and keep the employment records intact and updated, and observe other formalities pertaining to service matters of the employees and employee-employer relations.

Now you should better hire the services of some HR/service laws expert as a consultant to keep things in order, at least for the future to come. Certainly, once these employees are reinstated, they would become a source of extreme indiscipline for others to follow suit.

I agree with BSSv. Once you are already in the courts of law, there is no point in thinking about the measures that could have been taken or should have been supposed to be taken. Try to present the witnesses in court by producing or stating that an inquiry was conducted, resulting in giving them warnings repeatedly. The company did not want to make it official through the document, as the company is also concerned about the employees' future career prospects despite their behavior. However, the recent instances forced the employees to leave the company, and it was completely mutual. Consent of the employees was taken, and their resignation was received. Produce the documents of leaving formalities.