How Should We Inform a New Employer About a Former Employee's Mismanagement Issues?

Dear seniors, I work in a small company as HR. The company had appointed an EVP of Sales & Corporate Affairs. Due to mismanagement and misappropriation, the company held him responsible for many financial issues. The company incurred significant operational losses due to decisions made by him. Now, without a notice period, this individual has joined another company. However, the company had not issued any formal appointment letter to him.

In these circumstances, the company wishes to write a letter to the new company where he has joined. The letter should outline the descriptions of the misappropriation of money committed by him. Your advice on the contents to be included in the letter to the new company is appreciated. This communication will serve as a notification to the company that they have hired the wrong person without verifying his past details.

Thank you.

Hi, For such senior levels like EVP, why is an appointment order not issued? In the absence of an appointment order, how can you blame him for not serving the notice period? Was anything discussed with that EVP about the separation clause?

Anyway, you may write a letter stating that he left your company without any information and joined another, which amounts to dual employment. Please refer to the template below. You need to edit it as per your requirements.

To

(Mention the company name where he joined with address here)

Dear Sir/Madam,

We have been informed through reliable sources that Mr. _______ joined your company on _____. We would like to bring to your attention that Mr. _____ was hired by us as EVP and worked with us from ____ to ____ and left the organization without any information. Also, during his tenure with us, due to his mismanagement, our company incurred operational losses. While we were in the process of reconciling the total loss, he left us without any information and joined your organization, which amounts to dual employment.

We are writing this letter to caution you that he is not a credible candidate. We are planning to initiate disciplinary action against him, and we request that you look into this matter very seriously.

You may contact the undersigned for further details.

For _____

Please ensure you have sufficient and proper material evidence against him; otherwise, he might sue your organization for defaming his name in society.

Hello, Why did you hold his appointment letter? Do you have any right to do so? If there is no appointment letter or offer letter, then employment is deemed to be temporary in the eyes of labor law. How will you justify this? If you take any action, be ready for a reaction.

Dear Pundalik,

Upon discovering the misappropriation of funds by the senior employee, did you order a domestic enquiry? If so, was the enquiry conducted following the correct procedure, and was the accused given an opportunity to defend their case? If these steps were taken, has the blameworthiness been clearly established?

If a domestic enquiry was not conducted, then your accusations against the employee remain just allegations. What is the intended outcome of communicating these allegations?

Additionally, if your company failed to provide an appointment letter to the senior employee upon hiring, it inadvertently showcases a disorganized approach within your company. By not issuing an appointment letter, the employer failed to uphold their commitment. It seems contradictory that ethical conduct was only highlighted when the employee chose to leave voluntarily.

Without an appointment letter, what notice period are you referring to? Expecting employees to comply with verbal directives is akin to members of a crime syndicate following orders.

Regarding the employment of the senior employee by a new company, the decision to hire him was their prerogative. While a reference check from your company would have been prudent, it was overlooked. This highlights similarities in administrative approach between the two companies.

It is important to understand that dealing with a cunning individual requires caution as they are adept at concealing their actions. The incident underscores the importance of operating a formal organization within legal boundaries, with well-defined responsibilities and accountability. Organized companies have robust checks and balances to prevent fraud, and in the event of any wrongdoing, they resort to legal measures rather than public complaints.

Thank you,

Dinesh Divekar

Hi, Have you ever read the word "Ethics"?

1. You haven't issued an appointment letter to a senior person. This means there is no employment contract; hence, he does not seem to be an employee of your organization.

2. Business is volatile in nature. We have to make decisions based on the situation. Some decisions result in profit, while others lead to losses.

There is no need to write a letter to his employer; you may write to the ex-employee directly.

I would think very seriously about writing such a letter to the new employer. It could raise all sorts of legal ramifications, and by all accounts, your company is in enough financial mire to take on a court case as a result of being sued for libel.

Dear Sir/Madam,

We are writing to bring to your attention certain facts regarding the employment of [Name of the person] at our company. [Name of the person] was recently appointed as the EVP of Sales & Corporate Affairs in our organization. However, due to his mismanagement and misappropriation of company funds, he was held responsible for significant financial losses incurred by our company.

We would like to inform you that [Name of the person] abruptly left our company without serving a notice period. It is important to mention that we did not issue any formal appointment letter to him. However, we felt it necessary to bring to your attention the fact that [Name of the person] was involved in financial irregularities during his tenure at our company.

We believe it is our responsibility to inform you of this matter, as we would not want another organization to suffer financial losses as a result of [Name of the person]'s actions. We hope that this information will be helpful to you in making informed decisions regarding [Name of the person]'s employment at your company.

If you require any further information regarding this matter, please do not hesitate to contact us.

Sincerely,

[Your name]
[Your designation]
[Your company name]

Legal Binding and Notice Period

Read the whole case. There is no legal binding from both parties. Without an appointment, the newly hired employee is not bound to serve any notice to the company. For senior roles, the company should follow some standards (which your organization failed to accomplish). Hence, my suggestion would be not to raise the matter, as it could turn out negative for you and your organization.