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Dear Senior,

I am writing to seek guidance on termination of an employee whose negligence at work has cost us a big client. This employee has made mistakes in the past for which he was given few verbal warnings and one written warning. But at this point due to the loss of client we want to terminate this employee, can you help with the correct process we should follow so as to adhere to the Statuary laws?

Thanks.

From India, Mumbai
Dear Roshni,

If because of the employee's negligence, the company has suffered the losses, then you may order the domestic enquiry. Please note the following while conducting the domestic enquiry:

a) The focus of the enquiry should be on 'what happened" rather than "who did it". The Enquiry Officer (EO) should not conduct the enquiry with prejudice.

b) The EO should find out whether only one employee was responsible for the loss of the company's client or whether there were other employees involved in the incident.

c) Why the employee's reporting manager did not intervene timely? What is his accountability?

d) If not for the reporting manager, why there were no safeguards to avoid the loss? Is it that the safeguards were there but these were not followed?

e) During the enquiry, give a chance to the employee to defend his case.

If the misconduct is proved during the domestic enquiry, then issue the show-cause notice to the employee. While issuing the show-cause notice, quote the exact chapter number, paragraph number, and clause number where the misconduct is listed.

If the reply to the show-cause notice is not satisfactory, the management can award a suitable punishment.

Thanks,

Dinesh Divekar

From India, Bangalore
Thank you for the detailed information Mr. Divekar. This is of great help.
From India, Mumbai
I may add-first check your internal documents/standing order/Conduct & Discipline rules and if there's one effective it will help you to organise the Domesitc Inquiry. If you are from HR, SOP is required to follow. If you have no such document then you have to consult your Advocate for guidance. The process shall start with the receiving & registration of a formal complaint from the concerned department specifying the errors of omissions & commissions pointing out the alleged employee squarely attributing the loss to him. From this the process will start followed by Appointment of a Presiding officer, Presenting Officer formally by the Competent Authority. You may also consider 'suspension' pending inquiry.
From India, Bangalore
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