Allegations Without Proof: Can We Terminate an Employee for Suspected Misconduct?

Can we terminate an on-roll staff member if there is an allegation against him for taking money from the company in a different manner, but there is no solid proof for the same?

Thank you.

You should conduct a domestic inquiry for the same. Please ensure to follow the principles of natural justice. During the domestic inquiry, if the individual is found guilty along with evidence, you can terminate him/her.

Termination is always the employer's prerogative. The employer is the owner of the contract of employment and can always make revisions to the contract. Therefore, if there is a general contract in place, the employer can terminate it at will without any inquiry. See Things To Remember While Drafting A Valid Employment Contract.

If you want to terminate an employee on grounds of misconduct, then they should be given an opportunity to be heard and defend their case as per the principles of natural justice. For this purpose, you need to put them on notice about the charges and conduct a domestic inquiry where they can defend themselves against the charges. If found guilty based on evidence, then you can impose an appropriate penalty.

B. Saikumar
HR & Labour Law Advisor
Navi Mumbai