Dear All, I would like to ask if an employee was caught red-handed during a theft. What are the rights of the company to take the action against the employee as per the industrial and labor law?
Thanking you
From Pakistan, Lahore
Thanking you
From Pakistan, Lahore
Dear Qasim Raza,
For a misconduct of the grave nature like theft, it is important to conduct domestic enquiry. However, before ordering the enquiry, obtain statements from those who caught the employee while committing the theft.
The focus of the enquiry should be on what happened and not who did it.
Give a chance to the accused to defend his case. However, if the blameworthiness is established, then take a suitable action which could be termination of employment.
Keep records of the proceedings of the investigation as well as enquiry.
Thanks,
Dinesh Divekar
From India, Bangalore
7736For a misconduct of the grave nature like theft, it is important to conduct domestic enquiry. However, before ordering the enquiry, obtain statements from those who caught the employee while committing the theft.
The focus of the enquiry should be on what happened and not who did it.
Give a chance to the accused to defend his case. However, if the blameworthiness is established, then take a suitable action which could be termination of employment.
Keep records of the proceedings of the investigation as well as enquiry.
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Dinesh,
Thanks for your response. If the company did not file FIR at the police station and did not take the enquiry on the spot and the accused employee has been terminated without any investigation or without any show cause notice. This case has not been reported to HR in Head Office and factory management has decided to resolve it personally, after three days factory management informed HR of the complete scenario and requested please look into the case and sort out the matter. Please advise how HR can take legal action against the employee.
Thanking you
Qasim Raza
From Pakistan, Lahore
Thanks for your response. If the company did not file FIR at the police station and did not take the enquiry on the spot and the accused employee has been terminated without any investigation or without any show cause notice. This case has not been reported to HR in Head Office and factory management has decided to resolve it personally, after three days factory management informed HR of the complete scenario and requested please look into the case and sort out the matter. Please advise how HR can take legal action against the employee.
Thanking you
Qasim Raza
From Pakistan, Lahore
Dear Qasim Raza,
When the employee was caught flagrante delicto for theft, there is no ground for on-spot termination. The factory head should have handed over the matter to HR. The HR department should have ordered the domestic enquiry and if the employee was found guilty, a suitable punishment could have been awarded to him. Why a short shrift was given to principles of natural justice is not understood.
Anyway, now the services of the employee has been terminated. The termination of employment itself is the highest punishment. What further punishment would you like to give to him?
The employee's attempt to commit theft has been foiled. Therefore, I don't think that he is in possession of the company's property. If he is not in possession of the company's property, even then also, you can lodge a complaint against him. However, it could lead to unending rounds to the police station and further to the court. If the court case drags, it could prove cumbersome to the company.
Even now you can order the enquiry. Send a notice to the accused to depose before the enquiry. Let the Enquiry Officer (EO) ascertain whether the company has suffered any losses. If in the enquiry it emerges that the company has suffered losses, then on the strength of the enquiry report, ask the employee to pay the damage charges or return the property. If the employee does not oblige, then whether to pursue the case with police or write off the lost items is a call of the management of your company.
Thanks,
Dinesh Divekar
From India, Bangalore
When the employee was caught flagrante delicto for theft, there is no ground for on-spot termination. The factory head should have handed over the matter to HR. The HR department should have ordered the domestic enquiry and if the employee was found guilty, a suitable punishment could have been awarded to him. Why a short shrift was given to principles of natural justice is not understood.
Anyway, now the services of the employee has been terminated. The termination of employment itself is the highest punishment. What further punishment would you like to give to him?
The employee's attempt to commit theft has been foiled. Therefore, I don't think that he is in possession of the company's property. If he is not in possession of the company's property, even then also, you can lodge a complaint against him. However, it could lead to unending rounds to the police station and further to the court. If the court case drags, it could prove cumbersome to the company.
Even now you can order the enquiry. Send a notice to the accused to depose before the enquiry. Let the Enquiry Officer (EO) ascertain whether the company has suffered any losses. If in the enquiry it emerges that the company has suffered losses, then on the strength of the enquiry report, ask the employee to pay the damage charges or return the property. If the employee does not oblige, then whether to pursue the case with police or write off the lost items is a call of the management of your company.
Thanks,
Dinesh Divekar
From India, Bangalore
Speaking from the Indian law perspective, in such a situation, the HR should garner all evidence in support of the misconduct, keep them ready to adduce them before any judicial authority as well as plead for being granted an opportunity to prove the misconduct on merit before the legal authority before whom the termination may be challenged. Start with securing the theft property, get it identified as company property, and take written statements of all the witnesses.
From India, Mumbai
From India, Mumbai
Dear Qasim Raza,
In our country, a staff or worker's employment may be terminated without either advance notice or pay in lieu of such notice and without separation pay in case of the following action:
Theft of Company Money or Property
Theft of company money or property is prohibited. Theft includes stealing, or attempting to steal, company money or property, whether wrongfully taking it or by fraud or embezzlement. This includes, but is not limited to, the submission of fraudulent claims for reimbursement under the Company's Insurance and Retirement Program and under the Company's Travel Expense Voucher procedures, or false records of time worked.
If an employee steals or attempts to steal the Company's money or property, where the evidence so warrants, the company will bring the matter to the attention of appropriate law enforcement authorities.
The above is for your reference.
Best regards to CiteHR Members,
John Chiang
From China, Shanghai
In our country, a staff or worker's employment may be terminated without either advance notice or pay in lieu of such notice and without separation pay in case of the following action:
Theft of Company Money or Property
Theft of company money or property is prohibited. Theft includes stealing, or attempting to steal, company money or property, whether wrongfully taking it or by fraud or embezzlement. This includes, but is not limited to, the submission of fraudulent claims for reimbursement under the Company's Insurance and Retirement Program and under the Company's Travel Expense Voucher procedures, or false records of time worked.
If an employee steals or attempts to steal the Company's money or property, where the evidence so warrants, the company will bring the matter to the attention of appropriate law enforcement authorities.
The above is for your reference.
Best regards to CiteHR Members,
John Chiang
From China, Shanghai
Hello,
An employer cannot terminate an employee without sufficient cause or reason. after receiving the complaint letter in written against the concerned employee. Issue show cause notice to the concerned and investigate properly if he found accused then you can issue him/her warning letter or process for termination at immediate. But if you will terminate at immediate you will have to Settle the severance pay/Notice pay. Remember 1 months salary must be paid to employees who have worked for a year or more. For mass termination in protected sectors, three months of wages must be offered to employees. The Payment of Gratuity Act entitles employees to gratuity payment after five years of continuous service.
An employer cannot terminate an employee without sufficient cause or reason. after receiving the complaint letter in written against the concerned employee. Issue show cause notice to the concerned and investigate properly if he found accused then you can issue him/her warning letter or process for termination at immediate. But if you will terminate at immediate you will have to Settle the severance pay/Notice pay. Remember 1 months salary must be paid to employees who have worked for a year or more. For mass termination in protected sectors, three months of wages must be offered to employees. The Payment of Gratuity Act entitles employees to gratuity payment after five years of continuous service.
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