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Case: HR of an XYZ organization has done an error in the increment sheet which needs to be approved by the Board of Directors - CiteHR

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julieboarh@gmail.com
There is a case study- an HR of an XYZ organization has done an error in the increment sheet which needs to be approved by the Board of Directors. After getting the approval from the Board the reporting senior got to know that there is some error in the increment sheet. Now the boss of that particular HR has held his/her increment and put all the blame on HR and given him/her a written warning even after HR has given his/her clarifications.

Technically that increment sheet has to verified by someone before submitting it to Board (the manager himself/herself or someone from the finance team has to verify the data shared by HR rather than giving it to the board for final approval. Would like to request your opinion on who is wrong in the whole scenario and who should be penalized or what will be the corrective measures?

From India, Bangalore
Dinesh Divekar
7736

Dear Julie,

If a clerical mistake has been discovered after the board's approval, then let the correction sheet be sent to the board for approval. After correcting an error, let the board decide what action needs to be taken against whom.

There is a failure at multiple stages in this case. An HR professional of lower cadre committed an error. Her work was not audited by her manager, and it was sent for approval to the board. In the meanwhile, an accuracy check was neither done by the finance team nor by the board members. This appears to be a failure of the organisation's culture. Taking a lesson from the instance, the board has to take measures to institute a culture of accuracy check. Otherwise, mistakes of this kind will continue to happen and it could sour the relations amongst the staff members.

Thanks,

Dinesh Divekar

From India, Bangalore
julieboarh@gmail.com
Thank you Dinesh for such insightful response. Let me understand shall the manager can take action against the HR for the error by holding the increment and giving warning letter. Because it may effect the career of HR as the HR has never have received such any warning in his/her entire 10 years of career and she/he has a very good reputation in regards to his/her job in his/her previous organisations also. What could be the response from the HR after receiving the warning from the manager?
From India, Bangalore
julieboarh@gmail.com
There is a new development, Manager has squared of increment of the HR with the error amount i.e. increment has withheld completely
From India, Bangalore
Dinesh Divekar
7736

Dear Julie,

When the workers commit an error, the management imposes fines and penalties. However, fines and penalties should be reasonable. Withholding an increment appears to be too severe punishment. Therefore, you may submit an application to the top management for the review of the decision. Let us see, whether or not they agree.

The decisions on forfeiture of the wages and salaries are always taken by the top management. Did the manager consult the top management before imposing a punishment? Were they in the loop? Going further, before awarding a punishment, it is important to conduct a domestic enquiry. Did your company conduct an enquiry?

A somewhat similar case has been heard by Income Tax Appellate Tribunal (IATA), New Delhi. You may click the following link to refer to it:

https://taxguru.in/wp-content/upload...ITAT-Delhi.pdf

In the above judgement, the tribunal has ruled:

We also find that section 271(1)(c) postulates the imposition of penalty for furnishing inaccurate particulars and concealment of income. On the facts and circumstances of this case, the assessee’s conduct cannot be said to be contumacious so as to warrant a levy of penalty.

About Black Mark in the Service Records: - You have mentioned, whether or not you work in a private organisation or the public sector undertaking or the government organisation. You feel that your career records were unblemished but these could be tarnished because of the records of the imposition of the punishment. However, imposition of punishment is an internal matter of the company. When the employee quits employment, a "Service-cum-Employment Certificate" is issued and the award of such punishment is not mentioned in the certificate. Therefore, do not worry about this count.

Thanks,

Dinesh Divekar

From India, Bangalore
umakanthan53
5967

I think that the manager has exercised his authority excessively so as to make the HR who failed in his responsibility a scapegoat in a situation demanding responsibility and accountability. If the HR's report in a matter involving the approval of the board can be submitted without any verification, why there should be functional hierarchy? Authority and responsibility should go hand in hand.
From India, Salem
julieboarh@gmail.com
Thanks for the response. Now i would like to know whether HR should go the management and put up her points?
From India, Bangalore
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