Facing Termination Without Investigation: How Would You Respond to Employer Accusations?

Employer Email for Termination:

Dear Anoop,

We regret to inform you that your services shall be discontinued with immediate effect, as you have cheated the company by altering/forging the vouchers paid to suppliers/employees along with alteration of books of accounts and encashed the extra amount, damaging the company. Since the responsibility and authorization were given to you, the misuse of authorization and damage to the system of accounts led us to conclude that your service is not required anymore. Your last working date would be 22 Sep 2014.

Your termination letter has already been handed over to you physically, and you absconded from the office without responding to the letters and fraud.

Regards,
Employer

Employee Reply Against Termination Letter:

Dear Employer,

I am not accepting your termination letter because the raised issues are simply baseless accusations. We have not received any letter from your side to explain your misunderstandings. In the absence of a proper inquiry, you can’t terminate the services of any workman.

As you know, the company has a system to pay against the bills. All bills come to the accounts department with proper approval from the related HOD and administrative manager. After that approval, the accounts department proceeds with the payment with the final approval of the Plant Head. Vouchers are generated from the Focus software, where alteration is impossible, and it is also approved by the Plant Head.

As you know, the company has a system for monthly audits. All previous audits were satisfactory and rewarded.

We are very surprised by the actions taken by the company against me. At the time of the audit, the auditor performed auditing in the absence of the accounts team. After the completion of the audit, there was a force to accept the Rs. 10 Lakh claim with a signature on a blank stamp paper. We still don’t know what the audit report was or how the calculation for Rs. 10 Lakh was made. There was a force to accept the termination letter without any proper inquiry. There was ego, and nobody was prepared to listen to me; all the actions were one-sided.

Sir, I have always performed my duties with honesty and hard work and have never engaged in any activity that would damage the company. Please give us a chance to explain the misunderstandings because it’s a question of our career.

Regards,
Anoop

Employer Reply Against Non-Acceptance of Termination Letter:

Mr. Anoop,

Your acceptance is not required for the termination of employment, and serving notice itself is a termination. An FIR is filed against both of you (Dharmendra & You), and you can meet in the court of law for any justice if required.

Regards,
Employer

Establishing Grounds for Termination

Prima facie, we must establish fraudulent misappropriation or diversion of funds, or forged invoices, and then appoint an inquiry officer to consider all facts before terminating the employee. The employee should have been given a chance to explain their actions before issuing a final termination order. No individual can be terminated without a valid reason. However, if proper records are lacking in our system, actions may be taken based solely on the authorities' discretion. Whether it involves a criminal case or financial misappropriation, proper procedures must be followed.

Appointing an Inquiry Officer

When appointing an inquiry officer, it is crucial that the appointed individual holds authority higher than that of the accused of misappropriation and is designated by the appropriate appointing authority.

Best of luck...

Dear Shekhar,

From the communication between the employer and employee, the following are the observations:

a) Since the inquiry is not conducted, the termination may not withstand legal scrutiny. Nevertheless, it remains to be seen how strong the evidence of misappropriation is for the employer.

b) Anoop has written in his reply about the forcible signing of a bond paper for Rs 10 lakh. The meaning of this is not understood.

c) Has the employer lodged an FIR against Anoop? In that case, police authorities must have contacted Anoop to report to the police station. Has this happened? Are the police convinced about misappropriation? What is the status of the police investigation?

d) The facts of the case are provided by you. We do not know what the other side says.

e) If you are certain that you have not committed any misappropriation, you may approach a lawyer. Find out what they say. Ask the lawyer whether you can file an FIR from your side for illegal termination and other harassment. Check whether Anoop can seek anticipatory bail.

Thanks,

Dinesh V Divekar

If the employee has committed any fraud or stolen any of the company's confidential documents, they will be subject to severe action as per your management's policies. Simultaneously, an investigation must be conducted to determine if the individual in question has indeed acted against management directives. If proven guilty, management reserves the right to terminate the employee and file a complaint with the police.

If an investigation has not been conducted, but the individual is found or declared responsible for the damages, appropriate action should be taken. It is crucial to have strong evidence to support any complaints and seek compensation for the damages incurred.

If there is a lack of documented evidence and hypothetical actions are taken, it is advisable to first discuss the matter within your department or management before escalating it to the police.

It is imperative that you stand firm in your decisions.

Regards,
Nijan C.

For cases of fraud involving a substantial amount, we must prima facie establish the case. An inquiry officer should be appointed to delve into the details of the fraud. Once the case is established, we should provide notice to the erring employee based on the testimonies and findings of the inquiry. This course of action should be maintained even if the employee decides to take the matter to court. All witnesses should be examined and their statements recorded and signed.

Based on the inquiry findings, we have the authority to terminate the employee. In cases of severe fraud, we may even cease payments such as P.F./Gratuity, with release contingent upon a court verdict. By adhering to the above procedure, we can terminate the employee without encountering any issues.

Regards,
SUBBA RAO