Former Employee Demands Compensation After Misconduct: Should I Pay or Defend Myself?

I run a proprietorship trading company. My driver, who had been working for me for the past 20 years, left on his own last year (2014) due to misconduct he committed and was caught red-handed. He did not even contact me until yesterday. He called me and asked for compensation for his 20 years of service. I had paid him his regular salary up to date. So, should I pay him anything now? If not, how can I defend myself? The problem here is that he left on his own without any notice, and it significantly affected our business operations for the next few months until we found another driver.

Please advise.

Regards, Sadiq

I recommend that you conduct the domestic enquiry and allow the employee to defend his case. If his misconduct is proven, then you may terminate his services. He has worked for a long time in your company, and there is a possibility that individuals like him may resort to approaching the labor court. Therefore, it is crucial for you to maintain proper records of his termination.

If the employee were to be separated under normal circumstances, he would have been eligible for gratuity. However, in the case of termination on disciplinary grounds, he could forfeit his gratuity.

Lastly, once you had evidence of his misconduct, the need to continue paying his regular wages is unclear. It would have been advisable to initiate the domestic enquiry as soon as this scandal came to light.

Thanks,

Dinesh Divekar

First, you need to provide details about your business, including the size and nature of operations. How many people are employed in your company? What specific duties was your driver performing?

From your post, the following emerges:

1. The driver worked for 20 years.
2. There was some misconduct issue, but no action was taken by you.
3. The driver absented himself/left without any notice.

Notice Period Clause

What is not clear is what the notice period clause is in the appointment letter. Notwithstanding the notice period issue, he is to be paid the following:

1. Gratuity
2. Earned leave encashment (max 45 days) in case he has leave in credit
3. You may deduct notice period salary (in case it was stipulated in the appointment letter).

Regards,
Col. Suresh Rathi