How Should I Handle Employee Discipline and Termination Concerns in My Company?

Case Study: Employee Discipline and Termination

I want to describe a case study here. In my company, an employee was not following discipline, so we issued a memo. After that, the same behavior continued, leading me to decide on termination. I terminated him suddenly and agreed to pay the full and final (FnF) settlement.

At the same time, other employees were disappointed by this sudden action. They felt that management was acting without courtesy and that there was no job security for them.

I realized these concerns, so I conducted a meeting with them and explained everything. It wasn't necessary to share all these details with the employees, but I did so to alleviate their fears.

On the same day, some employees came to the office completely drunk (they were working the night shift).

I learned about this the next day from the security person, but I didn't confront him because I didn't want to increase their stress. So, I let it go.

Then, four of the employees took leave for two days without prior notice and didn't return for the next three days.

I need advice from you seniors. What should I do in this case? If they return to duty, what action should I take? Please advise me.

Regards,

Dear Nijan,

Whatever you have done is right. Taking disciplinary action against employees who are tardy is a rule followed by any organization. But why are the other fellow employees disappointed and feeling low? Is this the first time your company has executed this rule? You have done your part by clearly explaining to the other employees not to panic. However, they are still doing the same. Try to explain and convince them one more time. If the same thing repeats, it's better to escalate the issue to your top-level authority before it gets too late to sort out.

Thanks & Regards,
Srilakshmi Korukonda

Dear Nijan,

First of all, you have to issue a show cause notice to the employee asking for a written explanation as to why suitable action should not be taken for the indiscipline activities. If the employee does not provide any reply or if the reply is found unsatisfactory, then you have to issue a charge sheet, and an enquiry officer has to be appointed. In the due process of the enquiry, you have to prove that he has involved himself in indiscipline activities. According to the severity of misconduct, he has to be punished as per the standing orders applicable to you. Without following these formalities, if you terminate an employee, they can approach the labor court, and they may be reinstated with back wages.

Secondly, you have mentioned that you have explained the situation to the other employees, which is good. Additionally, you have to continuously motivate them and ensure they are confident to prevent labor unrest.

If any employees come to work in a drunken state, it is a very serious misconduct and should be treated with severity. Instruct your security personnel that in case anyone comes to work in a drunken state, they should immediately take them to a registered medical practitioner for a blood test to prove their intoxication. Following this, you have to issue a charge sheet and adhere to the above-mentioned formalities.

In the case of unauthorized absenteeism, you have to issue a show cause notice and follow the above procedures.

I hope this information will be useful to you.

With Regards,

S. Magesh

Thank you for your valuable feedback, Srilakshmi and Magesh. I am still confused about whether I should continue with these employees or recruit new ones as it is affecting the overall productivity of my organization. If they return, I will have to issue a charge sheet in case the same issue happens again, leaving me with no option to resolve it.

My top-level management has indicated that we need alternative resources and they do not want to retain any of these employees; they suggest terminating them. However, I want to handle this situation without any labor disputes, so I am being patient.

Please inform me whether they are in the engineering or supervisory cadre. If they are in the above cadre, you can directly terminate them by issuing a one-month notice. Otherwise, you have to create records against them by issuing show cause notices. If they commit serious misconduct, you can immediately draft a charge sheet with the help of senior personnel and follow the enquiry procedures. After the completion of the enquiry, you can terminate them and recruit new employees. This way, you can avoid any legal problems.

With Regards,
S. Magesh

As an HR professional, we should always strive to help employees. In my view, before considering expelling an employee, you should have counseled him and tried to understand the root cause or reason behind his repeated indiscipline. To achieve this, you should have personally treated him like a friend and extracted the reasons behind the misconduct. Often, issues such as family problems, job disturbances, or unclear job expectations can lead to such behavior. Showing kindness and providing some gentle warnings in the name of management could have resolved the issue. Resignation should always be a last resort, as it is a harsh decision to take. Moreover, it is important to involve others and ensure they feel secure in their jobs.

Regards,
Ashish Dadhwal

I have already provided counseling to the employees. I am not making a decision directly to terminate them. I am well aware that terminating employees not only affects the individual employee but also impacts the company's goodwill. However, the issue is that they seem to understand every situation and are well-acquainted with the management, but I have not been able to identify the reason for this kind of activity.

Thank you.

Based on my personal experience, I kindly request you not to terminate them. Please arrange a meeting with them in the office or any other suitable place, like a get-together. Listen to their problems, and make an effort to resolve them. Termination should not be seen as a permanent solution. Convincing them may not be easy, but we should make an attempt.

Regards,
Sivakumar

I agree with Mr. Shivkumar's viewpoint. Termination cannot be the answer. Seeing the situation from a different angle, the employees could be checking on you and management post your meeting. However, as many have pointed out, discipline cannot be compromised.

Before You Take Any Action

Ensure a couple of things:

1. This should not roll on to become a chronic matter. The same episode should never be repeated again.
2. Clear communication must be made through the right channel. I suggest you involve a senior person from the employee side who can convey the management view (preferably not from the union).
3. Finally, your actions should not affect the overall productivity of the organization. I suggest you first create a backup plan (e.g., hire temporary employees as replacements for the said employees) in case you wish to take drastic actions. You can also put them on forced leave for a week's time to cool their heels.

Hope this helps you.

Best Regards,
Sagar

Could you please provide more details about the activities of your company?

1. What is the company involved in—manufacturing, BPO, or something else?
2. What is the employee strength in different grades, such as workmen, supervisory, executive?
3. You mentioned holding a counseling session—what reasons were given for the employees' work attitude? Were they reasonable from your point of view?
4. Do you have an effective union?

While "Termination" always remains an option for any HR person, that does not mean it can be exercised for any or all behavioral situations. As you are aware, quite often the "soft blow" is more effective in the long run for an organization.

Your options depend on the details of the case—so I suggest mentioning the inputs above, and the members would be able to give you more focused and appropriate suggestions.

Regards,
TS

From your post, it does not seem that your employees are afraid of losing their jobs. If they had job insecurity, they would try to be more vigilant. Such employees are like bad fruits that sometimes need to be removed from the basket.

But do you also have a labor organization/union in the company? Are you referring to office staff or factory labor staff in your question? The expectations, reactions, and laws would differ in both cases.

At certain times, strict action has to be taken at the right time. If an employee shows up drunk to the office, it is not only a breach of office conduct code but also a serious safety issue for themselves and everyone around.

The initial course of action should have been to not allow the employee into the office in such a state or to ask them to go home immediately upon a report from security (or to report to a medical center if available in the company). This should be followed by a written warning letter, indicating a deduction of leave for that day and demanding that this type of behavior cease in the future.

You can still issue a warning letter now, although it may not hold as much weight since you cannot treat it as leave, and you won't be able to prove now that they were actually drunk. Asking for a blood test may only worsen the situation in the employees' minds.

For employees taking uninformed leaves, you should provide the first verbal warning for now. I don't believe it warrants a written warning at this stage. However, try to understand the reasons behind their leave and ask them to submit a predated leave application with reasons. If the reasons given are not acceptable or practical, then issue a memo making this leave unpaid, so they understand they will still be held accountable for their actions.

The best way to alleviate their job insecurity is to remind them that they are still employed within the organization.

Do not involve internal/external counselors until it's a last resort, as their reports may not be very transparent to the employees. This can increase job insecurity. Aim to keep the communication direct and clear.

In the first warning letters, avoid threatening termination, but make them aware of the rules and penalties if they are broken. It is also acceptable to point out that the organization can only tolerate behavior up to a certain point, and the purpose/ranking of the warning letters is to prevent reaching that extent yet.

Regards,
Amod.

In my opinion, as an HR professional, the employee should be given three chances. If the situation does not improve, then we can make the final decision to terminate. As mentioned by other members, we have taken the employee into confidence to resolve the issues. Terminating the services of employees without proper cause is not advisable.

Thank you.

Handling Employee Absenteeism and Disciplinary Actions

Regarding the above issue, there is no need to terminate them. If any individual is absent consecutively for 10 days without prior approval, they will be liable for action. If this occurs, ask for their explanation. If the explanation is not satisfactory to the Higher Authorities, issue them a warning. If the issue repeats, they will be terminated.

Regards,
RAGHU

Disciplinary Action in HR

In any case, HR should not compromise with disciplinary action. If you allow it once, people will take advantage of you, and the expectation to be pampered will continue.

I believe that in consultation with senior management, you should take some harsh disciplinary action to create a more productive work culture.

Handling Employee Misconduct and Disciplinary Actions

First, check what the clauses are on this matter in your standing orders (or in model standing orders if you do not have certified standing orders). If these matters amount to serious misconduct, you should suspend the employees immediately and conduct a domestic enquiry to terminate them. If not, then you need to give a show cause and issue a warning to build up a case.

Your management is right, and there is no place in a company for someone who comes to work drunk. These employees should be removed as soon as possible. If not, you will encourage others to behave in the same way. Find the best way to deal with the matter in line with your management's decision.

Circular on Indiscipline and Alcohol Prohibition

Issue a circular stating that indiscipline will not be tolerated and coming to the factory in a drunken state is banned.

In the Case of Worker Cadre:

1. Give oral warnings to employees not following guidelines; if the oral warning is ineffective, issue an advisory note.
2. Issue a warning letter to employees persisting in undisciplined behavior.
3. Issue a charge sheet.
4. Conduct a proper inquiry, gather evidence, and take written statements.
5. Conduct a formal hearing.
6. Issue a show-cause notice.
7. Impose punishment.

In the Case of Supervisory or Managerial Staff:

1. Provide oral warnings and advisory notes.
2. Issue a written warning and request a written apology.
3. Give a second warning.
4. Provide a third warning.
5. Issue a notice in accordance with appointment terms and conditions, leading to termination.