Can a Company Still Sue an Employee for Fraud After They've Paid Back Dues?

I need help to understand one thing. In the case when an employee is terminated for fraudulent activity and has repaid the dues asked for, can the company still pursue legal action against them? Is that necessary? Also, what about situations that are not clearly addressed in the company's policies?

Dear Nitin Kumar,

An employee commits fraudulent activity. The company recovers the amount involved in the fraud and also awards him a punishment, which is termination from the services. Despite all this, the company wishes to take legal action. But on what grounds? Under the provisions of which law or act?

Company Policies vs. Constitutional Provisions

Now, coming to your last query on the company's policies. The provisions of the Constitution of India are comprehensive, and their primacy remains intact. These are over and above the policies of a private company. Therefore, what is mentioned in the policies does not matter.

Conducting a Domestic Enquiry

A question from our side also. Before terminating the employee, did the company conduct a domestic enquiry? If yes, then was it conducted in a free and fair manner? If not, then the company has not followed due process of law. The reasons for not doing so are best known to the company authorities.

Thanks,

Dinesh Divekar

Yes, the company did conduct a free and fair inquiry. Thank you, your response really helps. My primary concern was if the company can go legal against an employee who has paid the dues and has already been terminated as a result of their fraudulent activity.