Employee Fraud in Sales: How Should We Handle Misconduct and Recover Losses?

Handling Employee Misconduct in the Sales Department

One of our employees from the sales department has been caught manipulating accounts and cheating the company. A few documents have come to light which show the manipulation and dishonesty.

Steps to Address the Issue

How should we handle this issue and recover the company's money from him? Should a police complaint be filed, or should any other process be initiated by HRD?

Maintaining Company Image and Ensuring Accountability

Please suggest how to handle this situation so that the company's image is not sullied, and at the same time, the message goes out that one can't get away with such misconduct.

HR Process for Recovery and Resolution

Please suggest the HR process for this issue from the beginning to the end until the money is recovered from him.

Conducting a Domestic Enquiry

First and foremost, order a domestic enquiry. The Enquiry Officer (EO) should be capable of understanding the sales or accounts process. Design the terms and references of the enquiry carefully. Please note that the EO's job is to conduct the enquiry and establish facts. He/she is not supposed to recommend any punishment.

You may suspend the employee pending enquiry. Upon receiving the enquiry report, you may initiate disciplinary action and begin the recovery process. If the employee refuses to pay the amount, the option of a police complaint may arise thereafter.

Thanks,
Dinesh Divekar