Legal Dilemma: Can We Terminate a Workman Over an FIR for Unpaid Loan? Seeking Advice on Next Steps

Legal Implications of FIR Against a Workman

There is a FIR against a workman lodged by an outsider on charges of not repaying Rs. 200,000 for years.

Can We Terminate the Accused Based on the FIR?

Based on the FIR, can we terminate the accused from the service? We have verified the Standing Order but did not find any clause related to misconduct. The accused has never committed any misconduct in our factory.

Seeking Legal Advice on Applicable Actions

Can our esteemed readers help us with the applicable legal actions against the accused if termination is not possible?

Please try to get a copy of the FIR and keep it available with you.

As the workman concerned has never committed any misconduct in the factory, as per your post, this fact carries weight when it comes to his discipline in the workplace. Therefore, it is advisable to summon him and instruct him to resolve the issue amicably with the concerned outsider.

What is his length of service with your company?

Thank you, Radhakrishnan Sir, for your prompt and educative reply. The accused has served for 16 years without any misconduct.

Employer's Authority in Criminal Complaints

The employer has no authority to take action on the basis of a criminal complaint made against an employee that has no rational connection with the employment. This is the position from the very famous Glaxo case onwards.

This is only a criminal complaint for cheque bounce as per the Negotiable Instruments Act 1881, and there is no allegation of any moral turpitude. Therefore, you are better advised to await the outcome of the criminal case and thereafter decide the course of action based on it.