How Should I Draft a Warning Letter for a Senior Manager's Fake Expense Claims?

Hi, this is Abid Hussain, an HR Executive in a multinational company in Pakistan. I need a warning letter format for our senior manager. He committed money fraud by claiming fake bills during an official visit to a foreign country. Can anyone help me? Please reply to my query as soon as possible.

Thank you!

Regards,
Abid Hussain
Pakistan

Fudging bills while claiming allowances is a serious offense. It merits far stricter action, possibly even termination from the job. I recommend not settling for just a warning. Conduct a domestic inquiry. If the accused is found guilty, then take stricter action. Any punishment must be exemplary. A warning is quite a diluted punishment.

Regards,
Dinesh V Divekar

Dear Dinesh, I agree with you, but currently, the management's decision is to give him a strict warning letter only because he submitted a written explanation in which he said this was unintentional. So, if he repeats this kind of activity in the future, then the company will terminate him.

Thank you!

Your management is taking a big risk by taking lightly what has happened. Faking bills is a fraud, and frauds are always done with intention. There is nothing "unintentional" about it. It appears that the accused is taking advantage of your management's gullibility.

Anyway, retain the evidence of the correspondence. Notwithstanding the written explanation, the situation merits a domestic inquiry even now. I also recommend that you write on your own and upload the draft here. Some seniors like me will correct it. When writing, follow the sequence as below:

a) Where the accused had traveled for official duty or visits
b) What kind of claims he made
c) What was the discrepancy and how it was noticed
d) What percentage of the amount was an excess claim?
e) Express dissatisfaction
f) Warning
g) Future consequences for the recurrence of the default

(Do not apply your logic right at the beginning of the warning letter)

Regards,
Dinesh V Divekar

The Importance of Maintaining Discipline in the Workplace

If you settle for just a warning, you are creating a precedent of sorts. Others will also start fudging. In case they get caught, they would like to settle with a warning. You are then opening a can of worms!

Certain acts of indiscipline should never be compromised. If your organization is truly keen to be known for honesty and discipline, then make a sincere attempt in establishing that!

Regards

If your management is satisfied with issuing a warning letter, nothing more can be done about it. There are several instances of employees being dismissed or demoted for such fudging of bills.

Solution for Handling Fudging of Bills

However, in order to overcome such problems, the best way is to give DA (daily allowance) depending on the grade of the employee while on a foreign tour. This is normally calculated from the date of departure till the date of arrival (both days inclusive). The rate of DA will vary depending on the grade. What he does with it is his problem. If he saves something out of it, it is his gain. Try to implement this with the concurrence of your management.

Warning Letter Format for Claiming Fake Bills

To: Mr. [Employee Name]
[Employee Address]
Designation: [Designation]
Date: [Date]

Sub: Warning Letter for Claiming Fake Bills

Dear Mr. [Employee Name],

It has been observed that you have committed fraud by claiming fake bills during an official visit to [Location], which is an integrity issue and a case of negligence towards the organization and its values. Claiming fake bills questions your integrity as a Senior Manager, for which you are making yourself liable for necessary action.

You are hereby warned to refrain from such activities; failure to do so shall invoke appropriate action. You are further advised to submit a written explanation/apology for the same as soon as you receive this letter. Kindly treat this as very urgent.

Regards,
[Company Name]