How Can We Fairly Implement a Memo System to Address Employee Mistakes?

Dear Seniors,

Recently, my organization has realized that there are some individuals who are repeatedly making mistakes, thereby reducing the efficiency of the organization. The organization is contemplating taking action against this issue. Some members feel that a "MEMO" system should be implemented in the organization, even though it is not currently practiced. However, no one has a clear idea about the process.

To the best of my knowledge, if an employee receives three memos, they may be terminated as per the law. This could potentially be used against honest employees if line managers are dissatisfied due to personal reasons.

I seek your suggestions on the best approach to implement this MEMO system, ensuring it benefits both the organization and its employees.

Thank you,

Clarification on Termination Process

There is no such law that mandates termination after receiving three memos. If you wish to terminate an employee, it is essential to issue a show cause or charge sheet to the employee, seeking an explanation from them. If you are not satisfied with their reply or explanation, then the company must initiate a domestic inquiry with the assistance of an outsider as the inquiry officer, giving the employee all possible opportunities to defend their case. Upon receipt of the report from the inquiry officer, you can impose any kind of punishment on the employee, including termination. The quantum of punishment should be proportional to the gravity of the misconduct.

Implementing a Fair Memo System

There is no law requiring you to terminate an employee after three memos. Learned member Ritesh explained the procedure to be followed before terminating an employee. You have stated that the employees are honest and you sought to know whether you can invoke the memo process against them because some line managers want it for personal reasons.

My view is that you should take action that will have an adverse effect on the employee based on the merits of the case, not on the personal whims and fancies of others. Honesty is becoming a scarce commodity in the employment market. It is better to have honest people first. However, honesty cannot be a ground to condone laxity in work. Honest people are normally sensitive too.

Therefore, instead of issuing memos immediately, it is better to employ a counseling process and then monitor their work, correcting them by keeping them under a mentor. If they still persist in making mistakes, you can first issue an advisory memo asking them to be careful in performing their work. If they do not mend their ways, you can issue an administrative memo detailing their lapses and cautioning them not to be casual in discharging their duties. This can be followed by a warning memo. I think they will mend their ways by now. If not, you can take disciplinary action as suggested by Mr. Ritesh.

Regards, B. Saikumar

HR & Labour Law Advisor

Navi Mumbai