Dear Colleague,
My views are as follows:
1.It is valid point if he is contractor's worker, you should act behind the scene and all actions should be seen to be taken by the Contractor.
2. There is nothing legally wrong to have daily rated worker on roll for any length of time .( when you say daily wage earner it means daily rated worker who is either paid daily or monthly.)
3. Before commenting on the punishment, I presume that the whole process of conducting domestic enquiry/disciplinary action is done strictly in accordance with the principles of natural justice.
4. While deciding what is appropriate punishment, one must take into account the gravity of misconduct and past record. If the concerned worker has committed it for the first time and the theft is of minor nature then you may choose to award lesser punishment like suspension without wages.
If the theft proved is of serious nature and he has committed same or similar acts of misconducts in the past, then perhaps deserves dismissal.
But before passing final order of dismissal, please ensure to issue second show cause notice , legally well drafted, requiring him to explain why proposed action of dismissal should not be taken.
If his explanation is unacceptable, then proceed to pass the order signed by the punishing authority.
Regards,
Vinayak Nagarkar
HR- Consultant