How Should We Handle an Employee Who Damaged Expensive Company Property?

Dear Seniors, I am Narmadha. I work as a Senior Executive in HR. One of our company's employees cut the cable that we received from our client for some rework. This employee took a bunch of cables and cut them. Initially, we were unaware of who had done it. After conducting an inquiry, we identified and confronted him. However, when questioned, he did not provide any reason for his actions. The cost of these cables is around 20 - 22 Lakhs. Please suggest what actions the company can take against him.

There is no HR Manager in our company, and this is the first time I have encountered such a situation in my career. Kindly advise on the appropriate course of action the company can pursue in this matter.

Thanks & Regards, Narmadha [Phone Number Removed For Privacy Reasons]

Hi Miss. Narmada,

You can terminate or dismiss him/her from employment if you have enough evidence to prove this serious misconduct. Additionally, you may also forfeit his/her bonus and gratuity if he/she is eligible.

With Regards,
Mr. Thumbs Up

Thank you for your suggestion, Mr. Kumaran. However, if we remove him from the company, and tomorrow he decides to file a case against the company claiming that he was unjustly removed, what would be the solution to this situation? I have already proposed this same solution to our management, and they are now questioning me about the possible repercussions. We also have a written statement from him admitting to the act in question. Yet, there is a concern that he may argue in the future that the management obtained this statement from him under duress.

Therefore, I am seeking guidance on whether an FIR should be lodged against this employee or if there are any alternative suggestions that can be provided.

Thank you and regards,

Narmadha [Phone Number Removed For Privacy Reasons]

As the cost of the material is in lakhs, it is better to go for a police complaint so that people with similar attitudes will also have a fear in mind. Simultaneously, you can file a charge sheet against him, conduct a domestic inquiry, and terminate him. Some companies may choose not to file a police complaint; in that case, they can proceed with a charge sheet, domestic inquiry, and termination.

Dear Narmadha,

You must terminate the employee due to gross misconduct, which goes against the company's policies. It is crucial to have the necessary evidence ready to prove his guilt in this matter. These proofs can be valuable even if the employee decides to take the case to a labor court, as they can help protect the employer's rights.

Regards,
Deepakk Pawar

Hello Narmada,

You can do one thing: generate the warning letter against him and send a copy to his home address. Wait for his reply, and if he doesn't get back to you, resend the warning letter. If he still does not reply, then you have the power to terminate him with immediate effect.

@ Naramada,
Please provide full details of the case. Are these cables assets of the company? How will it impact your company's relationship with clients/customers? Also, what is this employee's designation and what are his responsibilities? Without full details, one cannot make a judgment with limited information.

Since there is serious material damage to company property, lodge an FIR at the police station under whose jurisdiction the office is situated. Conduct an in-house inquiry with independent members. If the inquiry brings out actionable proof, the company can terminate his services and also proceed legally against the employee who has knowingly damaged company property. Your company will suffer losses as the cable will have to be replaced at its own expense. Is there any specific reason for the employee to have done such an act? Or is it plain mischief?

Dear Narmada,

First of all, you should conduct inquiries related to cutting the company cable and gather strong evidence. On the same day, close the gate on him/her because he/she will create a new situation on behalf of the company.

Thank you.

Dear Mr. Natharao,

Thank you for your suggestion. We have prepared the Domestic Enquiry Report on this issue. He does not have any motive behind this activity and has also lodged a Police Complaint. The Police are currently investigating him from their side. I will provide updates on the further process on this site, which may be useful for any HR professionals for their future perspectives.

Thanks & Regards,
Narmadha
9066137602

Dear Ms. Marmadha,

All employees are governed and regulated by the Model Standing Order.

Try to take a written statement of the workman involved in the act, with at least three witnesses, and their signatures thereupon.

Conduct an inquiry and take appropriate action based on the findings.

Regards,

Steps to Conduct a Domestic Inquiry

Please conduct a domestic inquiry. First, send the show cause notice to the employee/worker. If the worker doesn't reply to the show cause notice, then conduct the inquiry. If the worker replies to the show cause notice and if that reply is satisfactory to the management, then there is no need to conduct an inquiry or to punish that worker. However, if the reply is unsatisfactory, then proceed with the inquiry.

Next, appoint the inquiry officer, who may be an advocate. The inquiry officer will conduct the inquiry, and upon completion, will provide their findings. Based on the findings, appropriate action may be taken.

Regards,
B. Suresh
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