Hi experts:
The management is currently facing a situation involving three employees: the Manager, Supervisor, and Workman. Both the Supervisor and Workman have submitted their resignations, which have been accepted. However, before their relieving dates, significant financial irregularities were uncovered by the management, and both resigned individuals have admitted to their involvement in these irregularities. In light of these developments, the management intends to retract their resignations as internal investigations are underway to assess the extent of the financial loss.
Kindly suggest:
Supervisor and workman
1) Is there any legal issue involved if we withdraw the resignation before relieving based on the financial irregularities detected?
2) Since they have confessed the guilt, after issuing a show cause notice, can we dismiss them and also lodge a police complaint?
Manager:
Dismiss him by invoking the clauses of his appointment letter which permit dismissal in abnormal circumstances after show cause notice, and also lodge a police complaint.
Kindly suggest. We do not propose any inquiry as they have already accepted the charge. Any precaution other than inquiry? Should we pay their gratuity or forfeit after show cause notice?
From India, Delhi
10The management is currently facing a situation involving three employees: the Manager, Supervisor, and Workman. Both the Supervisor and Workman have submitted their resignations, which have been accepted. However, before their relieving dates, significant financial irregularities were uncovered by the management, and both resigned individuals have admitted to their involvement in these irregularities. In light of these developments, the management intends to retract their resignations as internal investigations are underway to assess the extent of the financial loss.
Kindly suggest:
Supervisor and workman
1) Is there any legal issue involved if we withdraw the resignation before relieving based on the financial irregularities detected?
2) Since they have confessed the guilt, after issuing a show cause notice, can we dismiss them and also lodge a police complaint?
Manager:
Dismiss him by invoking the clauses of his appointment letter which permit dismissal in abnormal circumstances after show cause notice, and also lodge a police complaint.
Kindly suggest. We do not propose any inquiry as they have already accepted the charge. Any precaution other than inquiry? Should we pay their gratuity or forfeit after show cause notice?
From India, Delhi
Dear members,
It is customary for fraudsters to admit their crime when the show-cause notice is issued. When dismissed, the same persons retract, go to the court and say that their retraction was under duress. Under such circumstances when the courts find that the domestic enquiry was not conducted, they set aside the dismissal and restored the employment. In a few cases, the restoration of employment was with the payment of back wages.
To avoid this predicament, I recommend the management of the company ordering the domestic enquiry. Let the enquiry happen in a free and fair manner, let the accused be given a chance to defend their position, and let the proceedings of the enquiry be recorded properly. If the accused are found blameworthy, then let the management give them a punishment that is proportionate to the misconduct. If you follow a proper process of discipline, you will not have to worry in future.
The role of the Enquiry Officer (EO) is not just to assign blameworthiness but also to find out why the fraud took place. The EO should investigate why there were no checks and balances and if there were, then who failed them? The enquiry should help identify the loopholes in the system. Based on the enquiry report, the management should be able to take preventive measures. If it was a financial fraud, then the EO should check whether the auditors also failed in the timely detection of the fraud.
Your question was whether to accept the resignation or not. In response to the letter of resignation, write that the resignation letter has been held in abeyance and action on resignation will be taken on completion of the entire process of discipline. If you feel that those who are involved in the fraud could tamper with the evidence, then you may suspend the accused. Hereafter, let all the correspondence be done in hard copies and not through email communication. Obtain the signature of the recipient of the communication on the office copy and preserve the records meticulously.
Thanks,
Dinesh Divekar
From India, Bangalore
It is customary for fraudsters to admit their crime when the show-cause notice is issued. When dismissed, the same persons retract, go to the court and say that their retraction was under duress. Under such circumstances when the courts find that the domestic enquiry was not conducted, they set aside the dismissal and restored the employment. In a few cases, the restoration of employment was with the payment of back wages.
To avoid this predicament, I recommend the management of the company ordering the domestic enquiry. Let the enquiry happen in a free and fair manner, let the accused be given a chance to defend their position, and let the proceedings of the enquiry be recorded properly. If the accused are found blameworthy, then let the management give them a punishment that is proportionate to the misconduct. If you follow a proper process of discipline, you will not have to worry in future.
The role of the Enquiry Officer (EO) is not just to assign blameworthiness but also to find out why the fraud took place. The EO should investigate why there were no checks and balances and if there were, then who failed them? The enquiry should help identify the loopholes in the system. Based on the enquiry report, the management should be able to take preventive measures. If it was a financial fraud, then the EO should check whether the auditors also failed in the timely detection of the fraud.
Your question was whether to accept the resignation or not. In response to the letter of resignation, write that the resignation letter has been held in abeyance and action on resignation will be taken on completion of the entire process of discipline. If you feel that those who are involved in the fraud could tamper with the evidence, then you may suspend the accused. Hereafter, let all the correspondence be done in hard copies and not through email communication. Obtain the signature of the recipient of the communication on the office copy and preserve the records meticulously.
Thanks,
Dinesh Divekar
From India, Bangalore
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