Warehouse Manager Missing with Funds: How Should We Handle This Situation?

We hired a warehouse manager for our company. He is still on probation. Our accounts team issued him an amount of 40,000 INR for the official purchase of items. He has not come to the office for the past 15 days. We have tried contacting him every now and then to come to the office and give us the details of the amount. Every day, he is making new excuses not to come to the office. Our work is getting hampered because of his absence.

We asked him formally to come to the office and settle all the dues, but he is not responding to us. We are planning to file a complaint against him. So, what should I do in this case? And what's the process for the complaint?

Dear Shruti,

Dealing with such situations can be challenging, but it's important to handle them professionally and in accordance with the law. Here are some steps you can consider taking:

Document Everything:

Keep a detailed record of all communication attempts, including dates, times, and the nature of your attempts (emails, phone calls, messages). Document the reasons provided by the warehouse manager for not coming to the office.

Review Employment Agreement and Policies:

Review the terms of the employment agreement, including any clauses related to probation, termination, and misuse of company funds. Check if there are any specific procedures outlined for handling such situations in your company policies.

Send a Formal Written Notice:

Draft a formal written notice requesting the employee's immediate attendance in the office to settle the dues and provide an explanation for the prolonged absence. Clearly state the consequences of not complying with the notice, such as termination or legal action.

Consult HR and Legal Departments:

Discuss the situation with your Human Resources department to ensure that you are following the correct procedures and legal requirements. Seek legal advice to understand the potential legal implications and to ensure that your actions are in compliance with labor laws.

Termination if Necessary:

If the employee continues to avoid communication and fails to comply with the formal notice, you may consider terminating his employment, following the procedures outlined in the employment contract and labor laws.

File a Complaint:

If there is evidence of wrongdoing, such as misappropriation of funds, you may consider filing a complaint with the appropriate authorities. This could include local law enforcement or labor regulatory bodies. Consult with your legal team to ensure that the complaint is filed correctly and contains all necessary information.

Recover the Funds:

If the employee has misused company funds, take steps to recover the amount. This may involve legal action or working with law enforcement.

Each situation can be unique, and it's crucial to consult with your legal team to ensure that your actions are within the bounds of the law. Additionally, local labor laws and regulations may vary, so it's important to be aware of the specific rules applicable.

Regards,

What is the company policy on fraud and dishonesty?

Do you even have a policy? If not, why not? All these policies should have been determined when the company was set up originally.

Filing a Complaint for Fraud and Dishonesty

This is fraud and dishonesty with the company, and a criminal case could be filed in this matter. You may make a formal complaint to the local police station. If you have a regular legal practitioner, take his or her help to draft the complaint and get it delivered to the local police station. Otherwise, appoint an authorized person to the police station and let him orally state the matter along with supporting documentary evidence (such as the appointment order of the defaulter, proof of paying the advance, the purpose for which the advance was to be used, and a chronology of efforts made to contact the defaulter). Based on this, the police would prepare the First Information Report (FIR). Once it is launched, the police would take it to its logical end.

It is concerning that your warehouse manager has been absent without communication for the past 15 days, especially given the funds issued for official purchases. Here are some steps you can take to address the situation:

Document Attempts to Contact

Ensure that you have a documented record of all attempts to contact the warehouse manager. Note the dates, times, and methods of communication (phone calls, emails, messages).

Review Company Policies

Check your company's policies regarding probationary periods, employee conduct, and use of company funds. This will help you understand the appropriate actions to take in this situation.

Send a Formal Communication

Draft a formal email or letter requesting the warehouse manager's immediate return to the office and an explanation for the prolonged absence. Clearly state the urgency of the matter and the need for accountability.

Request Expense Report

Ask the warehouse manager to submit a detailed expense report for the 40,000 INR issued. This should include receipts and an explanation of how the funds were used for official purchases.

Consider Legal Implications

If the warehouse manager continues to be unresponsive, consult with your HR department or legal counsel to understand the potential legal implications and the appropriate course of action.

Conduct a Probationary Review

Schedule a meeting to conduct a formal probationary review once the warehouse manager returns. Discuss the reasons for the prolonged absence, adherence to company policies, and the handling of company funds.

Prepare for Different Scenarios

Be prepared to consider different scenarios, including potential termination if the manager's actions are found to be in violation of company policies and if the absence is not adequately justified.

Notify HR or Management

Keep your HR department or higher management informed about the situation. They may provide additional guidance and support in handling the matter.

Implement Changes if Necessary

Based on the outcome of the review, consider implementing changes to policies, communication protocols, or oversight procedures to prevent similar issues in the future.

Remember to approach the situation with professionalism and in accordance with your company's policies and applicable labor laws. If in doubt, seek guidance from HR or legal professionals to ensure proper handling of the matter.