How Do I Write a Dismissal Letter for an Employee Accused of Fraud?

Please help me prepare a dismissal letter for an employee who committed fraud. She has been given a Show-Cause Letter and was ordered to submit a written explanation within 24 hours, but we haven't received any response as of today. She is now subject to dismissal/termination.

I opine that it is better to organize a domestic enquiry, issue a notice, and terminate.

Regards,
Kamesh

Before terminating an employee, you must conduct a domestic enquiry. During the enquiry, both parties will be heard, and the final decision will be made accordingly.

Thank you.

Notices have been issued. Please help me prepare a dismissal letter.

I am not familiar with the labor laws of your country; however, if the employee has committed fraud, it is better to conduct a domestic inquiry. Based on the outcome of the inquiry, you may take appropriate action, which could include dismissal.

Adhering to Democratic Principles

Your country is a democratic one. In a democratic setup, it is important to adhere to the principles of natural justice before imposing any kind of punishment. If the employee chooses to abstain from the domestic inquiry, you may terminate her in absentia.

Ok...

Regards,
Dinesh V Divekar

You have mentioned that she was given a Show-Cause Letter and ordered to submit a written explanation within 24 hours, but you didn't receive any reply from her. In my opinion, you should give her at least two more warning letters.

First Warning Letter

In the first warning letter, you should mention that the management sent her a letter dated so and so through registered post, but she didn't reply to it. The management is giving her one more chance to submit her reply. So, submit the reply within 7 days; otherwise, the management will assume that she has accepted that she is guilty. After this letter, wait for 7 days.

Second Warning Letter

In the second letter, you can write that she was given two chances to state her part, but she didn't reply both times. So, the management is giving her the final chance and asking her to submit her reply within 2 days in person. Otherwise, her appointment will stand terminated effective from so and so date.

Regards

Giving an opportunity to hear the other party is absolutely necessary, but it is not the case at all times. It is crucial to take corrective action promptly; otherwise, indiscipline may crop up in the organization. The "hot stove" principle may be adopted in a timely manner.

If I am wrong, please correct me. I request feedback from other members.

Regards,

If you want to terminate an employee for misconduct, you need to conduct a domestic inquiry and allow her the opportunity to defend her case. Failing to do so may result in your action not standing up to judicial scrutiny.

Regards,
B. Saikumar

It is a must to provide the opportunity for the delinquent to defend herself/himself in the presence of an Enquiry Officer. Her/his failure to submit an explanation or failure to attend the enquiry should be recorded by the EO, and the same should be reflected in the findings of the EO.

After that, a letter should be sent to the delinquent's address quoting the EO's findings and giving a final opportunity to defend him/her with a reasonable time to submit. If she/he fails to respond, then her/his services may be terminated by sending a termination letter.

Termination Letter Contents

The termination letter should contain the following information:
- The misconduct leveled against her/him.
- Quote the EO's findings.
- Under what grounds her/his services are liable for termination.

Regards,
Bhavani Sankar

I appreciate the views of Mr. Divakar. For the sake of natural justice and to avoid any legal complications in the future, it is essential that a domestic inquiry is conducted, and disciplinary action is taken accordingly, even amounting to dismissal from service. However, nobody should be punished unheard.

Sample Draft of a Dismissal Order

O R D E R

You were chargesheeted via this office letter no...... dated..... and you were required to submit your explanation. You failed to submit your explanation within the stipulated time. An Inquiry Committee was set up to hold an impartial inquiry into the matter and provide you with ample opportunity to defend yourself either personally or with the help of a co-worker, but you did not participate in the inquiry, or you failed to defend yourself, and the charges of committing fraud have been proved beyond doubt. An amount of Rs...... will be recovered from dues payable to you.

The undersigned is of the opinion that your misconduct is of a grave nature that cannot be taken lightly, and strong disciplinary action is warranted as per Clause No......... of the service rules applicable to you.

Consequent upon the authority and rights conferred by the Conduct, Discipline, and Appeal Rules of the Company, the undersigned orders the dismissal of your services with immediate effect, reasons for which will be recorded in your service book, so that no other employee resorts to such fraud in the future.

You are directed to hand over all the company's material in your possession to the concerned departments and obtain a "No Dues" certificate so that your terminal dues are released as early as possible.

(XYZ)

.................(Designation)

................(Name of Unit/Organization)

Cc to: All concerned.

Hope this will be enough.

Regards,
AK Jain

The reply, as well as the draft of Mr. Jain, is very useful and impressive. However, I would like to add that when you constitute the inquiry, please keep him informed. The inquiry officer should also keep the person posted with the dates of the inquiry. Such actions should also be incorporated by the inquiry officer in his report as a token of having offered a fair opportunity to the employee concerned to have appeared before the inquiry officer and put up a defense. Based on the inquiry officer having done as suggested, the management will be held fair in dismissing the service of the concerned.

Regards,
S.K. Johri