How Should We Handle a Salesperson's Misconduct and Termination Pay Concerns?

Hello, I have been working with a sales-oriented company as an Executive-HR, and we mark attendance based on the locations shared by salespeople. We contacted one of our distributors and discovered that our salesperson has not been reporting at the outlet for many days and has lied about the sales and stock. Now, if we terminate him immediately on the grounds of misconduct, do we still need to pay him for the gross period?

Clarification on Location and Sales Reports

By "location shared by the salespeople," do you mean only a specific dealer outlet, a street, or an entire town where multiple dealers operate? Have you verified whether the salesperson made any sales in the locality on the dates of no visits mentioned by the dealer?

Disciplinary Actions and Salary Withholding

Taking formal disciplinary action against the alleged misconduct is a different issue. However, unless you have concrete evidence that the salesperson submitted false reports for the dates he was completely absent, you cannot withhold his salary.

Employers have every right to withhold payment from sales executives who manipulate processes, commit fraud, and embezzle money from the company. Since you have decided to terminate his services, please do so in accordance with the separation clause outlined in the appointment letter issued to him.

If you terminate him immediately on the grounds of misconduct without proving it, it may backfire on you. You are advised to issue him a first show cause notice. Collect concrete evidence against him and then frame charges. Issue the charge sheet and conduct an inquiry based on the principles of natural justice regarding the charges leveled. Then take action upon receipt of the inquiry findings after proper analysis.

Before taking the action of termination following the procedure outlined above, you need to give him a final show cause notice as to why his services should not be terminated.

I hope Umakanthan Sir will agree with me.