Is My Company Obligated to Pay a Candidate Who Was Dismissed for Misconduct During Training?

Hi, we are a manufacturing company where we also hire marketing professionals. I issued an offer letter to a candidate who, based on the offer letter, came for a 7-day training at our office and stayed in our company guest house for basic training on policies and products. On the 5th day, the candidate became heavily drunk and did not attend training for the following 2 days. We decided to release the candidate due to misconduct and rescinded the offer letter. Neither an appointment letter was provided to the candidate, nor did the candidate sign the offer letter. The candidate is now requesting payment for 7 days of salary and travel expenses. We have not taken any other disciplinary actions against the candidate. Is my company obligated to pay anything to the candidate?

Payment for training days

Why not pay for the 5 days he attended training? He was there for you, so he is due and payable for those days. You have to be fair to expect fairness from others.

Notice period and travel allowance

Since you terminated the service, there is no question of a notice period. As regards travel allowance, what is your policy? If you have no policy, frame a proper policy. I suggest linking reimbursement with a minimum service period of one month.

Reflection on HR practices

You should thank yourself for getting rid of such an undesirable element; otherwise, the cost may have been very high. The non-issue of an appointment letter is not appreciated and does not sound like proper HR policy.

The payment for training can only be made for those who have completed the seven-day program. You can ask the person to submit the Training Completed certificate for their claim.

I would suggest paying the 7 days' salary and TA, obtaining a resignation letter, and closing the matter. I don't think an elaborate termination process is necessary if he signs the resignation letter for your safety. Otherwise, terminate him for misconduct (which might require proof of drunken state). If the offer letter is not signed, then there is no obligation on your part to pay him and close the issue.

You didn't give an appointment letter, and he also didn't accept the offer letter, so he cannot claim as an employee for salary.

Legal Liability in Candidate Training Situations

In this situation, your company is not likely to be legally liable to pay the candidate for the 7 days of training or travel expenses, given that:

1) No Formal Employment Contract: The candidate did not sign an offer letter or receive an appointment letter, which means no formal employment relationship was established. An offer letter, especially unsigned, does not equate to an employment contract.

2) Misconduct: The candidate's actions, particularly the misconduct of getting drunk and missing two days of training, are clear grounds for withdrawing the offer. In such cases, companies are generally within their rights to terminate the process without further obligations.

3) Nature of Training: If the training was merely introductory and unpaid, with no prior agreement to compensate the candidate for those days, the company has no legal obligation to pay for that period.

However, to avoid future disputes, it's advisable to:

* Ensure clarity on whether training is paid or unpaid in your offer letter or other initial communications.
* Document any instances of misconduct and clearly communicate the reasons for withdrawing the offer.

In this case, the candidate's claim seems weak given the lack of a formal employment contract and the serious nature of the misconduct.

Entitlement to Payment

If he worked for you, even if it was for 5 days, he is entitled to payment, irrespective of whether he signed the offer letter or whether you gave him an appointment letter. The offer letter is an offer, his joining the training is acceptance, and your letting him join is evidence that the employment contract was honored. Your failure to issue an appointment letter is actually immaterial, except that by not giving it, you basically have fewer rights. You cannot enforce the notice period or terms of employment as you never communicated it to him. On the other hand, he is entitled to claim all standard terms and what is in Standing Orders (your certified one or model standing orders) as you didn't communicate otherwise.

Traveling Cost Entitlement

Whether he is entitled to traveling cost depends on the terms of the appointment (which you didn't sign or communicate). But if you asked him to travel to your office, then you are liable to pay for the travel. Only if you had very clearly stated that he will not be given travel cost for training, then he may not be entitled to it.

Offer Letter Withdrawal

You cannot withdraw an offer letter that is accepted. At best, you can issue a show cause (which you probably didn't), give him a chance to explain himself, issue a suspension (for which period also you have to pay 50% salary), and then conduct a domestic inquiry. If the inquiry officer finds it was misconduct, he can recommend punishment (which can include termination, and the recommendation should be justified). You can then act on it.

So frankly, if he is just asking for 7 days' salary and travel cost, it is much less than your cost otherwise.

Questionable Conduct

By the way, I am surprised someone can be so drunk as to miss work for 2 days on account of the same. Was the drink given by the company (like in a party, etc.)? Was being drunk the real reason or was there something else?