Handling Employee Misconduct During Notice Period: Can You Terminate or Extend Resignation?

Handling Employee Misconduct During Notice Period

An employee who is already serving a notice period of 30 days after acceptance of his/her resignation is found to have been involved in a case of corruption or illegal gratification prior to the date of the resignation offer. Can I now initiate a termination procedure by issuing a short-period show cause (7 days or so) and ordering an inquiry? What are the legal implications?

Extending Resignation Date and Suspension

Can I extend his resignation date until the inquiry is completed? Will the person be under suspension beyond the originally proposed resignation date? Does the employer have to pay him/her regular salary during the excess retention period?

Termination and Natural Justice

Termination can be executed by adopting natural justice if an employee is involved in any misconduct. The employer must investigate and set up an inquiry regarding the misconduct.

Dear Colleague,

You may consider the following actions:

1. Withdraw the resignation acceptance letter forthwith.

2. Simultaneously, issue the chargesheet cum enquiry letter. The chargesheet should contain factual details of charges about corruption/illegal gratification (date, time, amount, names of persons involved, etc., in the incident). Give him an opportunity to submit a written explanation within 48 hours. Include the date, time, and name of the enquiry officer in this letter.

3. Issue an order of suspension pending enquiry. You have to pay him 50% of the salary last drawn until the completion of the enquiry. Finish the enquiry in three months.

4. If the charges are proved, take appropriate disciplinary action.

5. Consult a good labor lawyer at every stage of this action and decide.

Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

Dear friend,

I think that the entire set of your questions springs from your premise that the acceptance of resignation by the employer and the serving of the notice period by the employee would stand in the way of the employer's right to assume disciplinary control over the prospective resignee. No, it is not.

Notice period and disciplinary control

The notice period is the phase between the acceptance of a resignation effective from a future date and the actual relieving of the employee from the service. Therefore, all rules of discipline and the code of conduct apply without any change or modification to the employee serving his notice period too. You should remember that the employer has the power to cancel the resignation acceptance order already issued the moment any act of misconduct subservient to discipline alleged to have been committed by the employee, whether before or after the acceptance of his resignation, comes to his knowledge. The employer can initiate appropriate disciplinary action which may end up in dismissal as well.

Termination During Notice Period for Misconduct

During the course of his notice period, if an employee has committed any serious misconduct or is found guilty in a pending departmental inquiry, the employer has the right to terminate the employee's service after following the due process of employment law or as defined in the employee contract agreement.

Seeking Legal Advice Before Challenging Termination

If you believe there may be a possibility to challenge the termination, you are hereby advised that before taking any action, you should seek an opinion from your labor advocate or IR consultant.