Charge Sheet vs. Show Cause Notice: Which Comes First in Disciplinary Actions?

Understanding the Difference: Charge Sheet vs. Show Cause Notice

What is the major difference between a Charge Sheet and a Show Cause Notice? Which one should we issue first to the alleged employee? Let me explain the full disciplinary proceedings.

Regards

Understanding the Difference: Charge Sheet vs. Show Cause Notice

A charge sheet is a letter issued by management to the accused employee, informing them of the details of charges leveled against them, indicating the date, time, and venue of the alleged misconduct. This can be followed by issuing a suspension order and a warning letter after the suspension period is over to close the case. Alternatively, a warning letter can be issued depending on the gravity of the misconduct committed, and the case can be closed.

As for a show cause notice, it is issued to an employee to explain why disciplinary action should not be taken against them (asking for their explanation). After issuing a show cause notice, you can constitute a domestic enquiry, and based on the findings of the Enquiry Officer, you can impose penalties, a suspension order, or both, or even dismissal from the services.

Thanks,
R K Nair

Basically, there is hardly any difference between these two, though the instance when it is issued will figure out some difference. Both Charge Sheet and Show Cause notice intend to describe the charges leveled against the employee and direct him to show cause why disciplinary action should not be taken against him for the alleged misconduct.

When an employee is found involved in misconduct, it is proper to issue a show cause notice elaborating the charges/misconducts done by him and ask him to reply to it. If the misconduct is very severe, then it is also possible that the employee will be placed under suspension and then issued a charge sheet stating the charges and the grounds on which he has been placed under suspension. Domestic enquiry will take place only when the employee defends the charges and when the reply to the show cause notice is not acceptable to the management.

After the enquiry, based on the enquiry report, the management will decide on the punishment to be awarded to the employee. This is communicated to the employee in the form of a show cause notice, commonly referred to as the second show cause notice, through which the employer will say that the charges leveled against the employee have been proved, and therefore, the punishment as stated will be imposed on him and will call him to show why the said punishment should not be imposed on him. In this case, it is purely a show cause notice whereas in the former case, it is in the form of a charge sheet because it contains charges leveled against the delinquent.

Regards, Madhu.T.K

Thank you for your valuable reply. I have come to know that some companies are directly issuing a charge sheet instead of a Show Cause Notice (SCN). Is this correct or wrong? Can anyone please share the flow chart for disciplinary action steps as per what the law says?

If the charge sheet contains a direction to the employee to show cause or reply in writing why further action should not be taken, then there is nothing wrong with giving the charge sheet in the first instance itself without giving one show cause notice and then giving the charge sheet. Normally, a charge sheet is prepared taking time since it should be very specific, and there should not be any ambiguity with regard to charges.

Regards, Madhu.T.K

Mr. Madhu, Regarding your above reply, I understand that a Charge Sheet can be given directly without any Show Cause Notice, is that correct? If the alleged employee admits to his mistake or misconduct with respect to the charges mentioned in the charge sheet, what would be the next step, considering there is no need to conduct a Domestic Enquiry?

In our company's practice, we directly impose punishment according to our Punishment Matrix based on the charges leveled by the alleged employee. If the employee does not agree, they are temporarily suspended so we can conduct a Preliminary Enquiry with company staff (excluding HR) to ensure fair treatment of the employee. We gather findings from the Preliminary Enquiry Officer, after which the HR head decides on the punishment. Is this approach correct, or do you recommend any modifications?

Please advise.

Regards, Satkhi

If the employee admits the charges, there is no need to conduct an inquiry, but you can decide on the punishment and impose it. Before imposing punishment, however, you have to issue a show cause notice and ask the employee to show cause why this punishment should not be imposed on him.

The punishment awarded should equate with the same given in your certified Standing Orders or, in the absence of standing orders, the punishment matrix, as accepted by the employees in general. If you conduct an inquiry on the charges, the process shall be the same as per your current practice, but as far as possible, the employee should be given adequate opportunity to defend the charges leveled against him. He should be given time to present his case in his favor, allowed somebody from the office to assist him in the inquiry, given reasonable adjournments, etc. Above all, in the first sitting itself, he should be given a list of witnesses and documents the company is going to produce against him or in favor of the charges. As far as possible, copies of the evidence should also be given to him for verification and furnishing a reply.

Punishment can be awarded only by the person who is authorized to appoint an employee.

Regards,
Madhu.T.K