Can We Fire Someone Right Away for Serious Misconduct Without an Inquiry?

Immediate Dismissal for Grave Misconduct

Can we dismiss a worker or employee immediately on the grounds of grave misconduct without holding an inquiry?

Regards

Dismissal Procedures and Natural Justice

Dismissal without following the basic procedures and the principles of natural justice is illegal. Therefore, charge sheet the employee and ask them to provide a reply. If it is not satisfactory, hold an inquiry and, based on that, take action. As far as possible, punishment should also be as per the Standing Orders, if any, of the company.

Regards,
Madhu.T.K

You have to follow the procedures and rules laid down in the Industrial Employment (Standing Orders). If the employee mutually accepts the misconduct and is ready to resign on the spot, you may do so and can relieve him with immediate effect by paying his dues.

Regards,
Jitender

Re: Dismissal

Dismissal or termination without conducting a legal and fair inquiry is illegal in the eyes of the law. If the employee in question is involved in serious misconduct, such as theft, violent behavior, fraud, misappropriation, instigation, etc., which, if proven in an inquiry, will lead to extreme punishment, issue a pending suspension inquiry order and a charge sheet. Collect the evidence for the inquiry, and if possible, try to obtain a resignation from the charge-sheeted employee by offering certain financial incentives. This approach may assist you.

Regards,
SDP

It depends on the kind of misconduct. While I was working in Bangalore with an Indian multinational, there was a huge strike. In one of the factories, around 100 out of over 14,000 employees brought in crowbars, machetes, etc., and attempted to dig the areas around the machinery. They also tried to bring down the compound wall. We terminated them instantly without any further inquiry or show cause notice. They went to court. Our stand was that these employees were threatening the very survival of the organization, and hence there is no room for asking for reasons regarding their actions. The court upheld our argument and allowed the dismissal of the employees without any show cause notice or inquiry. Every court where they went for appeal, including the Supreme Court bench, upheld our actions. The lawyer was Mr. Kasturi, the famous labor law expert from Bangalore.

It all depends on the gravity of the misconduct in the eyes of the law. I would suggest that you may consult a good labor lawyer, as there are exceptions to the rule that are permitted depending on the misconduct. A good labor lawyer will be able to guide you as to where it would be applicable.

The case cited by Anonymous is quite different in circumstances; there was a huge strike, and a large crowd of workers sabotaged the plant, etc. The strike might have been illegal and/or unjustified. The ratio decidendi of the case is unclear, and no citation of the case is given. This is not usual misconduct and cannot be applied in general.

Requirement for Conducting an Inquiry

The requirement for conducting an inquiry depends on the category of the worker/employee. If he is a workman as defined in the ID Act and if standing orders apply, an inquiry is required before dismissal, however grave the misconduct may be. If he is not (e.g., executive/officer), he may be terminated instantly as per the contract of employment. For a worker, even if his appointment letter says "you may be terminated without notice, etc.," such dismissal is bad in the eyes of the law. If there are no standing orders, and model standing orders are applicable, then an inquiry may be conducted as per the same.

Mostly, managements want to send a strong signal to others by summarily dismissing delinquent workers. In such a case, the option is that the delinquent worker may be instantly suspended pending inquiry and then the inquiry held, and dismiss him if charges are proved. If an opportunity for defending his case is not given, by not holding an inquiry, the risk involved is that he may come back with rejoicing after 5-6 years, sometimes with full back wages, winning the legal battle in a tribunal or court, which is a serious setback to any management. Hence, it is prudent to be patient enough to complete the proceedings, slowly but steadily.

Also, see sec.33 (2)b, whether it applies (for giving one month's wages), which my guru says is the last nail to be put on the coffin of the dismissed employee! Agar marna tho, pyar se maro.