How Should We Address an Employee's Fake Load Scandal and Sudden Departure?

I need to write a notice email to the employee regarding her actions. She was making fake loads to meet her targets and suddenly left the organization. I have already sent an absconding letter to her, but after further investigation, it was found that she caused a significant loss to the company. Now, our Director wants to send her a notice mentioning that she was making fake loads without informing the manager. Please guide.

Dear Kavita,

An employee had been falsifying her target records. She probably realized her forgery could be discovered and abandoned the organization. Whether disciplinary action can be initiated against an employee who has abandoned her duties is something that legal experts on this forum can advise on. My point is limited to improving the systems and processes of your organization.

Questions to Consider

If the employee had been falsifying her target records, how long had she been doing it, when was it discovered, and how was it discovered? Why was it not discovered earlier? Why did her reporting manager not conduct proper verification? To what extent is the manager responsible? What is the monetary loss to the organization?

Responsibility of Senior Management

Why could the seniors in your organization not foresee and prevent the incident? In India, organizations are driven by the "experience" of the people. But then, why were the "experienced people" taken for a ride? Therefore, more than a junior employee, should the seniors not be held responsible?

System Flaws and Process Overhaul

The employee was cunning enough to identify the flaw in the system and took advantage of it. However, in many places, the focus is on a person rather than the flawed system. Therefore, should this incident merit an overhaul of the processes in each department of your organization? Please ponder!

Thanks,

Dinesh Divekar

Notice for Fraudulent Activities and Loss Recovery

Now that her deceit has come to light, please prepare an estimate of the loss caused to the company, including both direct and indirect losses. Send her a strong notice requesting a refund and an explanation for her alleged fraud and dishonesty. You may mention that failing to deposit the amount could lead to the initiation of civil as well as criminal proceedings against her, as per legal advice. Thereafter, terminate her from service, and you may pursue legal action if so advised.

This is a fit case for dismissal, of course, after going through the disciplinary procedure—chargesheeting, conducting a domestic enquiry, and dismissal. After assessing the monetary losses, also explore the possibility of criminal action if deemed appropriate.

Hold payment of all her legal dues until all loops are closed.

Regards,
Vinayak Nagarkar HR and Employee Relations Consultant

Dear Colleague,

Basic Facts of the Matter:

- An employee was making fake loads, meeting her targets, and suddenly left the organization.
- You had already sent an absconding letter to her, later found she made a huge loss towards the company.
- The employee was making fake loads without informing the manager.

Here, it is suggested to proceed with three simultaneous actions. It sounds very harsh, but if you have merit on your side and the employee has done considerable damage to the organization, not cooperated with your internal processes, or is not willing to cooperate, and all actions are intentional, then only go ahead with the steps. Do not lose the humane approach and always give all chances to the employee to set right the mistakes done:

1. Issue a Charge Sheet to the employee (as you had not relieved the employee yet) mentioning the clauses of your Standing Order/Model Standing Orders/Service Rules or Code of Conduct as applicable, calling for an explanation by giving a reasonable timeline. If a reply is received, study and understand the facts, then order an Enquiry as a Domestic Enquiry by following due principles of Natural Justice. Based on the findings, if proved, terminate the employee from services. If the employee is not receiving notices, no reply, no response, or refusing to receive notices, then proceed as per the disciplinary process and laid principles and conduct an ex-parte enquiry (issue a simple paper notice on the facts, etc.), conclude, and then terminate after the second show-cause documents and so on, as you may be aware.

2. Lodge a criminal complaint at the local Police station for forging documents/creating bogus loads, mentioning the loss created. The actions will be taken in IPC as deemed fit.

3. File a Civil Suit claiming compensation for the losses created by the employee as per documentary proofs with you, which are authentic in nature.

4. Improve the systems as suggested by the learned members in their replies as well as improve the "Supervision" and "Control Mechanism" with the due "Maker and Checker system."

Once again, before proceeding with harsh actions, give all chances to the employee to set things right and do the repairs to your organization's satisfaction. If done, drop actions.