Can We Fire a Manager for Office Affairs and Leaking Company Secrets? Seeking Advice

Dear Seniors, I would like to ask if we can terminate a manager who had two affairs in our office, with both employees (executives) having given written complaints against him. When we received the first complaint stating that he is mentally harassing as he is involved with another employee, the company gave him a verbal warning as it was a consensual relationship and not covered under POSH. Now, we have received a second complaint from another employee stating that he cheated her and also disclosed information about the company, new processes, etc. He has made false allegations against the directors and other managers as well. Kindly guide me on the grounds on which we can take action and if we can terminate him. Please reply.

Hi!

Look at your labor laws and the internal rules and regulations of the company covering the matters that you mentioned. Then act accordingly based on them.

Best regards.

Steps to Address Misconduct and Termination

Yes, you can. However, you need to take the proper steps. The first thing is to issue a suspension and revoke all his data access and rights to files. You need to speak to your lawyer to see if this is a criminal case. If your directors wish to pursue it, then file an FIR.

Next, you need to initiate a domestic inquiry both under the standing orders and under POSH, and proceed accordingly. Termination is an acceptable penalty for the misconduct you claim he is guilty of. Ensure that the rules are properly followed in both cases, including the rules of natural justice.

Does so-called cheating come under sexual harassment at work? I do not think so. If you stick to the cheating element, I do not think there is any case.

Can a company file a case for cheating in terms of a relationship with the employee based on the allegation of an employee? It is better if the concerned female employee takes action against him if required.

It is better to start proceedings under the Prevention of Sexual Harassment Act, and based on the report of the internal committee, you can take necessary steps.

Ritesh,

There is a case here of the manager revealing company trade secrets and processes to an outsider (competitor perhaps?). I was referring to filing a case for that.

Addressing Allegations and Termination Procedures

I sense some artificiality in your query. You have not mentioned your role within the company when asking this question.

Regardless, whether the allegation is false or true, you will have to follow the process prescribed under POSH. You do not have the right to immediately terminate the manager on that basis. The charge must be proven by the accuser.

Secondly, regarding the title of your query, you have not mentioned anything about the revelation of business information of the company or to whom it was revealed. Discuss if you have any proof about that.

Regards

The facts mentioned and the tone and tenor of the query suggest that the allegation of 'affairs' is an afterthought or invention. Prima facie, the issue appears to be something else and the POSH is being tried to get rid of the inconvenient employee.

Please let me know if you need further assistance or clarification.

Thank you very much for your replies. I am working as an HR Manager in a BPO with a sales outbound process. The query I raised concerns our Sales Manager, who had an affair with one of our employees (Executive). After some time, he started an affair with another new joiner (Executive), leading the first employee to complain that she can't concentrate and is unable to perform due to their actions and behavior in the office. However, it was a consensual relationship, so we have just counseled him against engaging in such behavior at work.

Now, we have received a complaint from the second employee (new joiner) stating that he cheated her. They started a relationship, but he hid his previous affairs, which she later discovered. Additionally, he is attempting to start a relationship with another new joiner. She questioned how the company can prevent him from approaching new joiners for relationships. Although he is not directly using his position of power, he is indirectly doing so. His actions are damaging the company's reputation, and no female would like to work in such an environment. Since it is again a consensual relationship, we can't take action on her allegations of him cheating on her.

However, the employee also complained that the Sales Manager revealed some information about processes and business secrets to her. He informed her about new processes starting and that bosses would be shifting him there for 15 days. He falsely claimed that one of our branches is going to shut down due to lack of profits. He also mentioned that our Directors are taking salaries and not profits. When the previous HR left, Sales Managers used to handle payroll, so he had access to salary data.

He promised both Executives involved in the relationships that he would include them in the new processes and assist them in call escalations if needed. He accepted favors in the form of money from them, which violates our policy.

The Sales Manager also told both Executives that another Manager is playing dirty mind games and is biased. He claimed that the Directors are biased too and would favor the other Manager for promotion. When confronted about this in front of the Director, he merely apologized.

He informed her that when the first employee submitted a written complaint, the Directors instructed him to convince her to withdraw it. However, she did not retract it. He also relayed the same message to the other employee (with whom he had a second affair), falsely implicating the Directors.

Moreover, he disclosed to both employees that the company cannot take any action against him as it is a personal matter and not official. He stated that he would make advances towards any female employees who joined the company.

I have provided a comprehensive overview of the situation. My Directors are considering termination, but it must be done in accordance with the law. Kindly guide me on this matter. I appreciate your guidance.

Regards

Investigation and Inquiry Process for Manager Misconduct

Firstly, you will have to investigate (in a fair manner and without bias) the truth in the allegations regarding the behavior of the Manager. If you find the allegations are true and the behavior is unbecoming, you can certainly issue a charge sheet, ask for an explanation, and give him a reasonable opportunity to defend himself. Conduct an inquiry and make a proper decision. (The entire procedure of the inquiry cannot be elaborated here.)

As the learned member Mr. Saswata Banerjee already pointed out, you will have to suspend his powers, including his entry into the office, and take all necessary steps. It may be suggested that, for a Manager, the Company can terminate his services at any time and question why any inquiry is necessary at all. However, please note that when any person is removed with charges or stigma, he must be allowed to defend himself. Otherwise, if the termination is challenged by the Manager in any Civil Court, the Company will have a tough task justifying its action.

Regards

Thank you very much for your reply, Sir.

We have already given him a chance to defend himself, and he confessed in front of one of our directors. Please guide me on the procedure we need to follow now. Should I take a signature on the document I prepared, mentioning that he was found guilty of false allegations against another manager and revealed information, or should I just keep the document in records? Can the company terminate him based on his confession, or should we only suspend him?

Please guide me.

Handling Misconduct and Termination Procedures

If he has confessed, get his statement in writing. If not, issue a letter referring to the confession he made to the director and the false allegations he has made. Ask for his explanation of why suitable disciplinary action should not be taken against him. Give him a timeline to reply, maybe 7 days. Suspend him pending investigations and remove his access to any electronic databases.

You need to properly organize written proof of him leaking company information. If you have the proof, when you receive his explanation, and if he does not accept his fault, you may have to proceed with an inquiry. If you have solid proof, then you can terminate him. If he accepts the fault, then there is no issue of termination. However, depending on the gravity of the offense, you can take legal action on criminal charges. If it is that serious, you can inform him that if he resigns, you would drop the criminal charges. This may push him to resign, reducing your burden.

Thank you very much for your response. I am truly appreciative of your guidance. Can anyone provide me with the format of a chargesheet or show cause letter for this case? Please reply. Thank you.

Dear All,

I would like to ask for how many days we can suspend the Manager once found guilty. Also, as mentioned in the previous reply about suspension, can we suspend a person after receiving a complaint, or should we wait until proving him guilty before suspension?

Kindly reply.

I do not see any labor law difficulty in terminating such a manager as he does not fall under the definition of a workman. You can terminate such a manager instantly by giving him one or two months' notice pay in lieu of the notice, as stated in the employment agreement. The office is not a place for romance, and coworkers are definitely off-limits for official information, which is privy only to a few senior staff members.

It is management's call if they want to terminate such a manager who is spoiling the office environment. There are no legal limitations in doing so. Just give him notice pay, and you will be good to go. You do not even need to hold an inquiry. Simply state that his services are no longer required and attach his full and final payment with it. Such individuals lead to a toxic office environment that must not be tolerated at any cost. The situation would have been different if he were a workman.

Dear Shri Kamal Kant Tyagi, if you please don't mind, being an advocate, your advice should not have been suggestive of an ex-parte judgment on the part of the management. An allegation can be true or false. Concerning the spoilage of the office environment, it can worsen if a wrong accuser is given undue support without proper investigation. This can set a precedent for any other female worker to make false accusations against her superiors without justification if she is reprimanded for her inefficiency.

Although the manager can be terminated at any time without showing cause, in the event of a serious allegation under POSH, it is crucial for the management to fulfill its duties and responsibilities with due diligence by providing a fair hearing to the accused before taking any punitive action. Failure to investigate such incidents properly can not only impact productivity but also expose the HR department to criticism for bias and prejudice. I firmly believe that HR must maintain proper checks and balances when handling such cases before reaching a rational conclusion. Therefore, a mere allegation should not suffice for the termination of a manager; it must be proven beyond any doubt.

Thank you.

Best regards,
[Your Name]

Termination of Manager Due to Misconduct

As I have already mentioned, the Manager confessed to certain things in front of one of our Directors. Therefore, the allegations made by the Executives are not false. My query is: can we terminate him on these grounds because the action is always based on the severity of the offense?

He revealed some information to the female employees that was discussed only with the bosses in the cabin. One of my Directors feels that the information he revealed is not so important. However, the other Director said he should not share any information, whether it's important or not.

Having affairs is a personal and consensual relationship, so for cheating in a relationship, we can't take action (we wish to take action as he is not stopping with just one girl. He is approaching female employees very smartly. He seems to know about POSH, as he bluntly said that the company can't take any action, unfortunately, which is true).

However, he revealed information about new processes and also told both females that he will take them in once it starts when he was in a relationship with them. Based on this, I raised my query about his suspension or termination.

Kindly guide me on whether we can terminate him, or if we suspend him, for how many days we can suspend him.

Regards

Dear Anonymous,

Confession in a personal discussion between two persons and a written confession are two distinct things. You have claimed to be an HR Manager, but, please don't mind, your inept and raw descriptions of the events so far indicate something else about you.

So, it would be better to read the act and rules on sexual harassment and act according to the process prescribed therein. However, if you are inclined not to follow any legal method, you may better use your own wisdom in the matter.

Suspend. Investigate. Chargesheet. Get his reply; if he agrees, punish him. If not, make one Inquiry committee headed by a grade one senior to him. Put forth management's defense. Let him defend himself through one employee or personally. Obtain the decision of the Inquiry officer. Then, proceed with the punishment. However, all actions should be in accordance with your HR policy.

Such acts of executives should be handled with an iron hand. Taking a transparent action under POSH would save the reputation of the organization as well as send a message to the other employees working in the organization. If the allegation is proved in the ICC enquiry, heavy penalties should be imposed on the delinquent in addition to removal from employment.

Agree with the suggestions by ED Larena, Ritesh, and K. Kulkarni.

Steps to Address the Situation

1) Verify the allegation impartially.

2) Depending on the outcome, revoke the authorizations so that the culprit cannot influence the situation.

3) Give both individuals a chance to defend themselves. (Use the word "HER" as, at this stage, you cannot name the accused.)

4) Clearly document the confession (on paper or recording).

5) In any case, this does not appear to be a sexual harassment or business secrets revelation situation since the information was not shared outside the company. Please review your company's internal rules and regulations. Do they address sharing information among colleagues?

6) Charges may only be related to business ethics and the code of conduct.

7) Based on concrete evidence and confirmation, the culprit can be terminated.

Agree with the suggestions by ED Larena, Ritesh, and K. Kulkarni. The steps should be as follows:

1) Verify the allegation in an unbiased manner.

2) Depending on the result, revoke the authorizations so that the culprit cannot affect the scene.

3) Give both parties a chance to defend themselves. (Use the word "her" as, at this stage, you cannot name the accused.)

4) Document the confession very clearly (on paper or by recording).

5) In any case, this does not seem to be a sexual harassment case, nor is it about revealing business secrets because he has not passed the information outside the company. Please check the internal rules and regulations of your company. Does it mention anything about sharing information among colleagues?

6) Charges can be related to business ethics and the code of conduct only.

7) Based on this, with complete evidence and confirmation in hand, the culprit can be terminated.

Please terminate the employee as per the legal terms and conditions. Any harassment against females needs to be taken seriously to uphold the confidence of other employees in the system.

Dear All, Thanks a lot for your replies. Dear Priti, I would like to thank you for your guidance and for providing me with a plan of action. I raised this query because one of my Directors is in favor of the Sales Manager as he has been with him for many years, and he has been with this company since its inception. There is an emotional attachment involved. Before taking any action, I have to consider this and have to convince, or you could say, have to prove that the action is required as per the law. When I received the first complaint and asked the employee to provide a written complaint, my Director was not happy about receiving the written complaint. He mentioned that I was stretching it. He instructed the Manager to resolve the issue by persuading the employee to withdraw the complaint. In this case, they did not involve me for two days and attempted to resolve the issue at their level. However, when the female employee was not willing to retract her complaint and insisted on providing it in writing, I was brought into the situation. This was simply because I adhere to labor laws, rules, and regulations. Being in a managerial position, I also understand that a verbal confession during a personal discussion and a written confession are two distinct things. I simply wanted to seek the opinion of seniors as I am not receiving support from the Management. Thank you very much for your guidance.

Dear Anonymous,

If your intention is to avoid future litigations on the issue by the sales manager, then get his explanation in writing. Get a complaint from the female employee and forward it to the Internal Complaints Committee. Initiate a domestic inquiry, treat sexual harassment as misconduct under the service rules, and initiate action for misconduct. Terminate him by giving a notice period and pay his final settlement.

Overlooked Aspect of Employee Complaints

There is an interesting aspect to all of this that we seem to have overlooked. This is a complaint by two female employees against a manager who has the right and power to have them removed from their job. So, the matter is not necessarily about a mutual consent sexual relationship. The employees have made written complaints (though we don't know the contents of the complaint). Can the company actually avoid putting this before the POSH committee? Wouldn't it have an adverse effect on the company and make them liable under the act for suppression of the complaint? Whether it is an offense or consensual is something the POSH committee can decide after investigation and hearing all sides. Otherwise, if the matter goes to the district committee or becomes a police complaint, the consequences can be bad for the directors who will be considered a party.

Thank you for your replies and guidance. The Sales Manager resigned on his own. However, the complainants are asking what if he comes back. As I mentioned, one of our Directors is in favor of him and is currently out of town, so further action will be taken upon his return.

Once again, thank you for your guidance and support. I agree with Mr. Banerjee that this matter is not necessarily about a mutual consent sexual relationship, as we have received complaints from two employees against the same Manager. He is tarnishing the company's reputation and creating a hostile environment in the office. I am in favor of taking strict action against him.

I will follow the action plan provided by Ms. Priti and Mr. L.K. Saravanan when the Director calls him in and gives him a chance to defend himself.

Thanks & regards.

Handling Employee Misconduct: Steps to Take

Firstly, you need to obtain his written confession about his work, and this should be done in the presence of the respective police officer in charge. Otherwise, the employee might claim that he was coerced by seniors to write the confession under the threat of dismissal. After that, the company should formally file a complaint regarding the actual issue.

As per the sexual harassment rules, you can proceed to terminate him. However, a written complaint is required from both female employees, as this will serve as evidence to justify the termination.

Regards