Navigating Fraudulent Employment: How Should Companies Handle Impersonation Cases?

Dear Experts,

There are cases of gaining employment through fraudulent acts involving the submission of false testimonials such as transfer certificates and mark sheets belonging to different individuals. These deceitful actions were brought to light when the employees submitted their Aadhar Documents, revealing discrepancies in their personal details. Upon further investigation, the employees themselves admitted to using fake certificates to secure their jobs, despite having a clean record throughout their 14 years of service as workmen. Disciplinary action has been initiated against them, and they have acknowledged their wrongdoing in their explanations.

Queries regarding the situation

I have several queries regarding this situation:

1) How should we address them correctly by name in any future documents?

2) What is the appropriate way to provide subsistence allowance while they are under suspension pending the inquiry?

3) If they seek an amicable settlement, how should we proceed at this stage?

4) In the event of their resignation, how can we settle both their final dues by the company and their statutory dues?

5) If they are dismissed, how should the company settle their dues?

6) If the company decides to take a lenient stance for humanitarian reasons, what are the potential legal consequences?

7) Given the impersonation involved, should the company file a police complaint against the erring employees, or is the action taken by the Management in line with the standing orders sufficient?

8) Any other pertinent information would be appreciated.

I look forward to hearing the expert views on this matter.

Thanks & regards,

Considering Humanitarian Grounds

If considering humanitarian grounds, they did it out of the need for a job and found very good skills during previous years. Give them a full and final settlement till the current date and rehire them under the correct name with proper documentation.

Discontinuing Employment

If you have ample manpower and wish to discontinue their employment, take disciplinary action and conduct a proper domestic inquiry.

Dealing with Notorious Employees

If dealing with a notorious employee, file a police case against them.

In my personal opinion, I prefer option I as the number of people involved is high; otherwise, it could lead to industrial relations issues. I faced a similar issue in one company and used option I to successfully overcome it.

How can we now correctly address them by name in any further documents?

Terminate their name immediately, and if you wish, you can reassign them with a new employee code and correct details.

In what way can we make subsistence allowance, as they are now under suspension pending inquiry?

As guilt has already been proven, you can terminate their name immediately without any further inquiry. Obtain written acceptance of guilt from them and terminate their services immediately. Therefore, the question of subsistence allowance as well as suspension pending inquiry does not arise.

If they come for any amicable settlement, how can we proceed with such a settlement at this time?

They cannot ask for a settlement as their activity is fraudulent; instead, they may be prosecuted under section 420 of the IPC.

If they resign from the job, how can we settle their dues for both final settlement by the company and statutory dues?

Please refer to the ID Act and SO Act for guidance.

If they are dismissed, how can they settle their dues with the company?

Please refer to the ID Act and SO Act for guidance.

If the company considers a lenient view for humanitarian reasons, what would be the legal consequences?

You can treat them as new joiners after the existing employee's separation.

In the case of impersonation, does the company need to file a police complaint against such erring employees, or would the action taken by the management in accordance with the standing orders be sufficient?

It's entirely a management decision.

Any other relevant information.

What else would you like to know?

I request expert views.

Thanks and regards,

Dear Venkitaraman,

How can we now correctly address them by name in any further documents?

They have to be continued to be addressed in their assumed names to maintain continuity. Since their actual names are not on the company rolls, it can be added only as 'alias.'

In what way can we make subsistence allowance as they are now under suspension pending inquiry?

Subsistence allowance is to be paid invariably during suspension; otherwise, your disciplinary action will be held as vitiated.

If they come for any amicable settlement, how can we go by such a settlement at this time?

As suggested by Shri RK Singh, please consider reemploying them under their actual names as a fresh appointment and without continuity of service provided they meet the educational qualifications.

If they resigned from the job, how can we settle their dues, both final settlement by the company and statutory dues?

This is a managerial decision, but can you conveniently ignore such a fact of impersonation? The question is whether they would have qualified for employment had they disclosed actual facts at the time of their employment. An ineligible person shall not be allowed to get away with such a major fraud. They have not only appropriated something which was not due to them but also deprived rightful candidates from getting their due benefit, resulting in an irretrievable loss to them.

If they are dismissed, how can they settle their dues with the company?

In this case, the consequences of dismissal, like denial of benefits including gratuity, can be considered. The principle is that dismissal debars reemployment.

If any lenient view be taken by the company for the sake of humanitarian grounds, what would be the legal consequences?

It depends on the action being taken. For instance, in case of reemployment, this will be quoted as a precedent in other cases of fraud and dishonesty within the company. The employees concerned may put pressure at a later point for granting them continuity, which you should be wary of.

Being a case of impersonation, does the company need to make a police complaint against such erring employees, or is the action taken by the management in accordance with the standing orders enough?

Any other relevant information.

Thank you.

Addressing Misconduct in Employment

This misconduct is a criminal offense punishable under the Indian Penal Code. In such cases, there should be no mercy, no humanitarian consideration, and no kindness shown, as the company is not committing any excess on the employee. On the contrary, the company is a victim of cheating. Suspension pending a domestic inquiry is the appropriate action. You need to set an example as the company is now under the scrutiny of employees. If such cases are shown mercy and let off, it becomes a precedent that employees might use to shield other misconducts. There should be no amicable settlement as the company is not under any obligation. Even if the employee proposes to resign, this option should be rejected; the employee should be punished. Filing an FIR is purely your prerogative; you need to decide.

Warm regards,
Bharat Gera
HR Consultant
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