I think it can be registered as an industrial dispute with your area conciliation officer or labour court under section 2k of industrial disputes act, 1947.
Definition of the Industrial dispute is also mentions that the disputes or difference between the employer and employer connected to labour, employment, etc., will also be called as a industrial dispute
Please talk to your labour advocate towards the same.
If they are relatives, then it should be dealt in collective bargaining. suspend the employee for some days without pay by giving him show cause notice and punishment order.
Both have committed misconduct, if The Industrial Employment (Standing orders) Act is applicable to you. The Act is applicable to establishment which employ 100 or more workers, but many states have lowered the manpower requirement. Please check your state rules.
If applicable, you will need written complaint from one who was witness to this incident. On the basis of the complaint domestic enquiry can be initiated against both. You can't issue even warning letter for this, unless the enquiry proceedings establish the misconduct. Initiating any action without domestic enquiry may backfire if the accused takes up the matter to labour office.
Shrikant Prabhudesai
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