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Termination Due to False Allegations: Seeking Advice

One of my friends was terminated by his company. The reason was solely because a lady in his office made false allegations against him and filed an FIR at the police station. As a result, my friend spent more than 25 days in judicial custody. Eventually, he obtained bail from the local court as he was innocent, and there was no supporting evidence. Currently, there is a stay on his case from the High Court.

Questions Regarding Employment Termination

1. Can a company terminate an employee solely based on false allegations?

2. Can he challenge his employment termination in any court and claim back wages and losses?

3. Can he seek reinstatement based on the High Court's stay, or should he wait until the case concludes?

4. Is there a clause that states an employee is ineligible for their job if they spend more than 72 hours in judicial custody? (He works as an Operations Head in a private limited bank)

5. From the HR perspective, if the court proves his innocence, what are his rights concerning his job?

I kindly request your feedback. I believe my friend is truly innocent; he is a helpful individual and finds himself in distress. I feel obligated to assist him as he is concerned about his job.

Regards,
Basant Kumar

From India
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Termination Due to Judicial Custody

If there is a company policy stating that an employee will be terminated if they are under judicial custody for more than 72 hours, then the employee can be terminated based on such a clause. The bank will not halt its operations until the final verdict is reached, and in some cases, the judgment may take its own due course of time. This clause is common in most companies because the complainant has lodged a complaint at the police station and not with the employer/HR of the bank. Therefore, it does not fall under the jurisdiction of the employer to judge whether the employee is innocent. Furthermore, no establishment would prefer the police to conduct their inquiry on their premises, as it may disrupt their day-to-day activities.

The employee can file a legal case against the complainant for all damages/defamation, etc.

This is only my view; let seniors also give their opinions.

From India, Ahmadabad
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