Ex-Boss Threatening Legal Action Over Past Sales Practices: What Should My Friend Do?

Dear senior members,

My friend is working in an insurance company. This was a sales job, and there was high pressure. Some malpractices, like taking money from customers manually, were involved, and all this was unofficially endorsed by all seniors to fulfill their targets. He has resigned and served a three-month notice period, and laptop data was submitted to the company. After 45 days, he received the relieving and F & F settlement, and he joined a new company in a different sector.

After six months of relieving, his boss started calling him and demanding some data, sometimes money. Now, my friend is not picking up their calls. Somehow, his boss got his family member's number and told them there was some discrepancy by him and asked them to convince my friend to meet or call them; otherwise, they will take some legal action.

As it has already been six months, he doesn't have any data. In this scenario, can they take legal action? Or can they inform the current company? Or do they just want to extort some money? If a legal notice is received, what should be the action?

Legal Implications of Financial Irregularities

If your friend was really involved in any financial irregularities, the person who suffered loss or damage due to your friend's conduct can initiate legal action. For that, the time limitation does not matter. The past employer can do it once they find such irregularities. This may even damage the relationship that your friend has with the present employer.

At the same time, if your friend is sure that they did not collect cash from the dealers or clients of the company, or if the cash collected was deposited in the bank account or paid to the cashiers against vouchers/valid evidence, then there is nothing to worry about. Let the past employer take action, and your friend can face it.

Dear All,

My friend is a sales manager, and his boss is a zonal sales manager. He told me it is a common practice in the company to take cash/money for achieving targets, and everyone is doing it. The boss sent a screenshot showing around 10k Rs transferred to my friend's account, for which he cannot find any data. My friend has some call recordings. He mentioned that their system is very porous, and at most, this involves 20-30k Rs. He is referring to an incident from April 2023. An audit has already taken place, and he has been given a 3-month notice period. He is afraid that since their system is unreliable, they may arrange some proof and frame him in big trouble. When he called his relative and explained the case, his relative asked him various questions he couldn't answer and mentioned that he also wants a solution amicably.

If they send a legal notice, what should be the reply? Can they file a police complaint along with the notice?

Thank you.

Against the notice, he can reply by citing relevant documents and evidence. That is what he can do now. Let him meet the past employer and boss to explore the possibilities of an amicable settlement as well.