Long-time Employee Involved in Unethical Practices: Can They Be Fired Without Notice?

Hi friends, this is Neeta, new to this forum.

Friends, I would like to know if an employee who has worked for a company for more than eight years and holds a good position (managerial cadre) can be sacked immediately without any notice because of their involvement in some unethical practices.

Regards,
Neeta

Go for written evidence and some good proof against him if you have to sack him. Otherwise, you may have to lose your job if you are proved wrong.

Regards,

Ank

If you have proof with you, there is no point in retaining employees who are involved in unethical things. I feel there is no need for prior intimation before sacking him/her.

-Hanuma

Please have a look at his appointment letter. There should be a clause about termination in it. Normally, the appointment letter provides for summary termination for misconduct and compensation in lieu of the notice period (payable by the employer) for termination of services, without assigning any reason. You may adopt either of these methods, as applicable, and terminate his services forthwith.

Some companies prefer giving the employee an opportunity to resign voluntarily rather than terminating his/her services, especially if the employee has been with the company for a long time like in this case.

Hi Neeta,

I would suggest that you, as mentioned by others, go through the appointment letter details. Conditions are mentioned there. Secondly, I would recommend checking whether the unethical act, as you mentioned, is of civil or criminal nature. For everything, you need to collect proof to support your actions. If there are any complaints by management or staff members, include them in your letter as reasons.

In general, the notice should be given to inquire why the procedure for his/her removal has not been initiated.

Best of luck.

Dear Neeta,

As mentioned by other users, first check the nature of the crime, i.e., civil or criminal. If it is a criminal offense, there is no need to give any explanations; however, make sure you have written evidence so that you don't get into any problems later. Regardless of the cadre or position the person holds in the company, if found guilty, the company and management have the right to expel the individual from the office.

The other aspect you have to check upon is the terms and conditions mentioned in the appointment letter. Normally, it states that both parties must give one month's notice when a decision to leave the office takes place, either voluntarily or involuntarily. So, keep this point on the checklist.

Make sure to gather necessary information from colleagues (intra and inter-department), from his official system, i.e., scan the system, so that you have substantial evidence about the activity.

Intimate everything in writing by marking a copy to his immediate supervisor and to your supervisor.

Document the same in hard copies in his individual file along with necessary signatures.

Ensure a formal email or letter goes to every department in your organization either directly or indirectly related. If possible, limit this activity to the department heads so that lower levels in the organization don't get panicked and start discussing. This might result in employee demotivation.

After you perform all the above-mentioned activities, make sure to speak to the accused manager's immediate subordinates and his team to ensure them that job insecurity arises only when an employee is associated with a crime, either civil or criminal, which affects the reputation of the company as a whole. This will show that the company, in line with the HR department, is concerned about the other employees in the department.

I hope the points mentioned will be of some help to you.

All the best.

Regards,

Suresh

Neeta,

When you discuss with the accused, make sure that you don't initiate the talk in front of all other employees. If possible, ask the accused employee to meet the officials in private, either at a hotel or in a discussion room away from other employees' sight. Try to ask your legal person to accompany you all during the final discussion so that all the proceedings are documented, authorized, and ensure that they comply with the labor law or employee law prevailing in India.

Regards,
Suresh

Dear Ms. Neeta,

You can terminate with notice as per the appointment letter or letter of contract. However, there are certain litmus tests that you should conduct:

1. Whether he is a workman or not under Section 2(s) of the Industrial Disputes Act.
2. Just because he is designated as a manager does not necessarily mean he is an exempted employee under the ID Act (please refer to the Vazir Sultan Tobacco Co case - AP High Court).

What sort of jobs and responsibilities has he executed? If his job is purely managerial or administrative in nature, ascertain whether he has control over a team of employees, authorizes leave and denies leave, issues charge sheets or warning letters to employees working under him, conducts appraisals, and recommends increments or no increments, etc.

If the litmus test proves positive, then you can terminate with due notice or salary in lieu of such notice.

Regards,
Michael Nicholas

Hi friends, thank you a million for your suggestions. I'm sure that I will be able to handle this issue. Our appointment letter mentions that either party should give prior notice of 1 month before leaving the organization voluntarily or involuntarily. However, if this person is asked to report to the office for a month, there are possibilities that he can poison the minds of his teammates. What can be the alternate solutions to handle this?

Regards,
Neeta

Neeta,

I had seen one of the employees who worked for 15 consecutive years with one of the MNCs in Delhi and was sacked within a minute. He was one of the managers and the oldest employee of the company. When he asked the HR and upper management for the cause, the answer was simple: "It's JUST Cause" and even told that management is not answerable to anyone for one reason or another.

Thanks,
Dev

Dear Neeta,

Sacking an employee should not be considered only from the statutory viewpoint but also from an organizational perspective. The following points need consideration:

a) Will following the legal procedure not enhance your image within the company by showing that you adhere to ethical business practices?

b) Adhering to legal practices improves or maintains employee morale, indicating that the organization is fair.

c) If you terminate an employee without providing proper notice, the morale of current employees may decline. Will you be able to retain talent in such cases? Will it lead to increased attrition?

d) By adhering to a Hire and Fire policy, will you be able to attract better talent in the future?

e) If an employee was involved in unethical business practices, what was the audit department doing? Why were there insufficient checks and balances? How did no employee report this to management? Even if the issue was reported, did management delay action and now suddenly wants to take stringent measures to send a "right" message to all employees?

f) Indian Criminal Law mandates that the accused must have a chance to defend themselves before being pronounced guilty. Why are you hesitating to give the chance to prove innocence?

g) Take disciplinary action regardless of the employee's length of service.

h) Regarding Mr. Dev: Termination of an employee by an MNC without proper notice is entirely illegal. The fact that the employee did not approach the labor office does not justify the MNC's action. The law applies equally to all, without differentiating between Indian and foreign companies. If we constantly talk about "Values" and "Ethical Business Practices," then how can we justify terminating an employee without notice?

Thanks,

Dinesh V. Divekar

Yes, he can be sacked for his unethical work with the company. But you should have strong proof to prove the same to your management. If you have it, you can go ahead. He should be punished for his unethical behavior.

Thanks,

Neeta,

What unethical thing did he do? Can you please specify?

What are your decision-making powers in your company?

Would you make decisions individually or jointly with the management team?

I guess I am 'senior' enough to give advice in this matter by virtue of over two decades of experience, and this is my advice.

Go ahead and terminate his services by giving him a letter of termination under the clause in the appointment letter that empowers the company to do so. Tell him not to come to the office anymore and give him one month's pay in lieu of notice. Your action would be perfectly legal, and no court would question you since the appointment letter that he has accepted, with the clause about separation, is a valid contract.

As far as the morale of other employees is concerned, I am sure by now everybody knows about whatever he has done and is waiting to see what action the management is going to take in the matter. I can assure you that by sacking this person, you will be sending the right message across to the employees that the management brooks no nonsense of this sort and will sternly act against anybody committing a breach of trust. Nobody is going to perceive this as a 'hire and fire policy' either unless your company has been sacking employees left, right, and center.

Dear Neeta,

Before sacking anyone, the principle of natural justice has to be followed, and an opportunity of being heard must be given to the person concerned. This is mandatory, whatever the nature of the offense.

Sachin Jayaswal

Hi Neeta,

If he is a managerial person, even "Loss of trust" could be a reason for his removal. I suggest paying 'one month notice pay' with a letter stating that the management is not seeing a possible working relationship with him anymore. Therefore, enclosing a cheque towards one month notice pay as stipulated under the clause of his appointment order and dispensing him without any stigma attached.

MSV

An employee can be "dismissed" or discharged with immediate effect for the misconduct stated by you in this case. No notice or pay in lieu thereof is mandatory. It is a case for discharge simpliciter. The misconduct can be treated as dereliction of duty, disobedience of standing orders, or a rule of your company framed thereunder.

Harsh
Email: hksharan@gmail.com

Dear Neekita,

As others have clearly mentioned, the first thing to consider is the intensity of the crime and whether it is criminal or civil. Both parties need to undergo a series of procedures as clearly prescribed in the appointment letter. Each activity must be documented and circulated to all other employees in the organization to create insecurity for employees engaging in unethical activities.

All the best,
R. Palanivelkumar, MBA

Yes, an employee can be terminated immediately without notice based on the following:

1) Proof or evidence implying his unethical intentions.
2) The clause of termination in his offer or appointment letter.
3) Or the termination policy of the organization.

If there is any monetary or any other kind of damage that has happened to the organization, please mention the same because you can always show him that it is in the best interest of the organization's growth and reputation that he is asked to leave. Please note that undisputed evidence has to be presented.

Hi Neetha,

First, ascertain whether the misconduct demands termination as stated in the standing orders of the company. Talk to the employee and inform him about his misdeeds. Ask him to resign immediately and explain that his services will be terminated if he does not resign. Offer him the opportunity to resign to avoid harming his career by termination. If he refuses to resign, you may consider implementing the termination punishment. A manager cannot file a case in the labor court since he is not a worker. The only way he can claim damages is by filing a civil suit in the civil court. It is always better to obtain his resignation.

Sharath

Hello Neeta,

Before sacking any employee, for whatsoever reason it may be, a DOMESTIC ENQUIRY should be conducted where the victim gets an opportunity to be heard. After the enquiry, the management will give the final decision (award him/her). This is what the principle of Natural Justice says. Because sacking an employee is not a child's play, we must consider the consequences of expelling an employee. They might go to labor courts and tribunals to seek justice. In that case, you need to have ample proofs and grounds to support your stance.

Then, you should consider your company's image and goodwill. I always suggest asking the employee to tender resignation, where neither party will be at risk. Otherwise, dear Neeta, it's my sincere request to conduct a Domestic Enquiry before arriving at any final decision.

Regards,
Archana

Well, you can terminate subject to the terms and conditions in the appointment letter. With sufficient witnesses/written proofs, you can terminate him by giving him one month's pay in lieu of notice.

Regards,
nktiwari

As far as this case is concerned, the appointment letter is a ready reference, and there will definitely be a paragraph mentioning the terms and conditions. So, you can proceed accordingly.

Of course, you can dismiss him without mentioning any reason for such unethical practice. However, normally companies ask for voluntary resignation from the particular employee, considering his long service.

For any such action, you must have authentic proof and evidence.

Thanks,
Sampathkumar

Hi,

It depends upon the clause written in the Appointment Letter. If it is written that he can be terminated, but as per Labor Laws, one month notice or one month's salary has to be given. But if it is written in the Appointment letter, you may.

Thanks and Regards,
Sreejith

Such sacking can happen if it is included as a termination clause in the offer letter or in the benefits manual that is openly circulated. However, enough written evidence needs to be collected to prove that the findings were of such a nature that could lead to immediate termination, irrespective of the grade.

There can also be a factor where the employee was given a chance to put forth their defense, and this has been adequately recorded and signed. Failing this, the sacked employee can approach the court, pleading that he/she was not allowed a defense.

Hi,

It is not required for the HR or management to give a notice period to the employee who went against the company.

Thanks,
Pallavi.

I fully agree with the views of Archana. No employee can be sacked without an inquiry and following the disciplinary proceeding against him/her. A notice should be given to the concerned person setting out the misconduct, asking him to reply within a specified period (maybe one week).

Once he submits his defense, conduct an in-person inquiry, record the proceedings of the inquiry in writing, sign the proceedings (both you and the employee concerned), and then only send your recommendation in writing to the management for his/her dismissal, clearly stating the grounds for dismissal.

Adopting this procedure will help you a lot if the dismissed person goes to court. If the procedure is proper, the courts will look into the merits of the case. If the procedure is improper, then the court will set aside the dismissal order without even going into the merits of the case.

Sachin Jayaswal

Usually, there is a provision for pay in lieu of notice from either side. Since his continuation in the company is undesirable, notice pay may be given in lieu of the notice of one month.

Ashok

In such a case, if the sacked employee was in a service agreement with the company, can the company claim the bond amount? As you know, all employment bonds are one-sided, i.e., the employee always has to pay. Here, the company is asking the employee to leave, so can the company claim the bond amount? Please reply; it's urgent.

I think so, and the management need not state any reason for sacking. It's written in the 'ORDER' you receive.

Hi,

It is actually unethical to terminate an employee without a valid reason and without following the procedure. If an employee is found involved in an unethical activity, the first thing we need to do is give that employee a show cause notice and ask for an explanation within 24 hours. This notice should be handed over with a witness from the staff.

After getting the explanation from the staff, we need to hold a discussion with him personally and in the presence of another staff representative. If he cannot justify his deed properly, the company management can fire him by giving one month's salary in advance.

Anyhow, we need to seek his explanation as to what prompted him to do it. Through this inquiry, we can even identify more individuals involved in the same plot.

Afsal
9995559004

First option: Try to get a resignation from him. If not possible, issue a charge sheet, conduct an enquiry, and dismiss him. You do not need to prove his misconduct 100% as in a criminal trial. Collect some documentary evidence and two witnesses to give evidence only as much as they have knowledge about the case. Let them not favor either the company or the person involved in misconduct. Let them only state the existing procedure in their evidence, and you can prove how the person deviated from the procedure. After the enquiry, you can dismiss him on the grounds of loss of confidence in the employee. Whether he is a worker, staff, or executive, it is better to dismiss him after giving him a proper opportunity to defend himself. If you appoint an enquiry officer, they will oversee all the formalities. Although there are practical difficulties in the enquiry proceedings, it is always best to dismiss an employee after conducting an enquiry.

Thanks a million, friends.

This is what we did. We collected every document, written proofs, and also eye witnesses. All these details were brought forward to the management. With all this, he could not justify himself. So, we asked for a written resignation and he was relieved immediately. His salary and final settlements are adjusted against the financial dues he needs to settle with the company.

Dear Friends,

As per laws, no confirmed employee who is on the company's payroll can be sacked without following the below-mentioned process:

- A show cause notice must be given with a deadline for the employee to provide the cause.
- Based on the employee's response to the show-cause notice, they may be terminated.

Pravin.