My employee has been cheating with our company by working for another firm while sitting in my office as a freelancer and sending all data, including vendors, costs, clients, etc., to the other firm. I want to take legal action against him. How can we proceed with this?
We would also like to take action against the company to which the data is being passed. Kindly advise.
From India, Mumbai
We would also like to take action against the company to which the data is being passed. Kindly advise.
From India, Mumbai
Dear SheetalHr,
You are entitled to take action against the employee, but not for the company. Therefore, you should issue a disciplinary action against the employee detailing the data theft in your company through a show cause notice or memo. Subsequently, you can organize a legal inquiry with the employee in front of an advocate who is a member of any bar council. If the data theft is proven against the employee, you can proceed to issue a termination letter after the inquiry. This is the most severe punishment for an employee from a legal perspective. Terminating an employee without conducting a legal inquiry is not permissible.
To address this issue effectively, follow these steps:
i) Issue a show cause notice.
ii) Conduct a legal inquiry.
iii) If the data theft is proven, proceed with termination.
iv) Ensure the settlement of all statutory benefits for the employee.
v) Implement a system to prevent such activities in the future.
Thank you and Regards,
Prakash.HR
From India, Kolkata
19You are entitled to take action against the employee, but not for the company. Therefore, you should issue a disciplinary action against the employee detailing the data theft in your company through a show cause notice or memo. Subsequently, you can organize a legal inquiry with the employee in front of an advocate who is a member of any bar council. If the data theft is proven against the employee, you can proceed to issue a termination letter after the inquiry. This is the most severe punishment for an employee from a legal perspective. Terminating an employee without conducting a legal inquiry is not permissible.
To address this issue effectively, follow these steps:
i) Issue a show cause notice.
ii) Conduct a legal inquiry.
iii) If the data theft is proven, proceed with termination.
iv) Ensure the settlement of all statutory benefits for the employee.
v) Implement a system to prevent such activities in the future.
Thank you and Regards,
Prakash.HR
From India, Kolkata
SheetalHR,
The above activities are applicable only if you have a standing order in your company with its clear description of misbehavior and its legal action against the employee. You should mention the standing order number regarding data theft in the MEMO.
Thanks & Regards,
Prakash.HR
From India, Kolkata
The above activities are applicable only if you have a standing order in your company with its clear description of misbehavior and its legal action against the employee. You should mention the standing order number regarding data theft in the MEMO.
Thanks & Regards,
Prakash.HR
From India, Kolkata
Dear Sheetal,
Do you have any Non-Disclosure Agreement in your firm? What are the current guidelines on the access to the information and thereby sharing them? For you to file a case against him, you may first need to check the current practices. Please consult your corporate lawyer before you collect any proof and file any case. If your firm didn't have firm guidelines, a knee-jerk reaction can prove to be costly. Looking forward to hearing from you!
From India, Mumbai
Do you have any Non-Disclosure Agreement in your firm? What are the current guidelines on the access to the information and thereby sharing them? For you to file a case against him, you may first need to check the current practices. Please consult your corporate lawyer before you collect any proof and file any case. If your firm didn't have firm guidelines, a knee-jerk reaction can prove to be costly. Looking forward to hearing from you!
From India, Mumbai
Hi Sheetal,
The procedure and actions suggested by Mr Prakash above are really appreciated but before going further, I believe you must answer the following questions to community
a) How do you know that the employee is under duel employment and about such act?
b) Did you get the information about him / his duel employment by any of your employees or anything that you have noticed which make you felt like he supplying your company data to another companies.
c) Are you holding a senior/authorised position in your department which helps you to take direct actions?
d) What actions you have taken so far?
e) Have you shared the same with any of your seniors or anyone in your team?
The aforesaid questions are really important and need to answer, so that, there would have no place for misleading information/communication and you can get the appropriate solutions/suggestion which will also help others.
And hope the relevant terms and conditions you have included in the appointment letters to prevent or fight with this kind of problem like NDA (asked by Ms (Cite Contribution))
And if you are confident about his act, I�m hoping that you have perfect material that can prove the same, you can take action against the employee, and otherwise you need to do your homework before going further because it is really important for issuing even a notice to employees in this regard.
To collect proof against him, need to perform:
- need to share the same with his direct reportee/Boss/TL/Supervisor and IT Head immediately
- take help of IT department to know his all computerized activities.
- can take help of his coworkers secretly (and CCTV CAM if you have the installation in your office premises).
- You can also control his official work and timing by help of his Senior/Boss/TL/Supervisor.
- PC/Laptop allotted to the employee can also be accessed by IT people to know about data transmission, and reauthorization for personal email and use of other websites.
Subsequently, if you found good and relevant information/poof against him, he can be terminated immediately by referring the breach of T&Cs of employment and need to file an FIR against the same employee for the act, and set an example for other employees too
From India, Gurgaon
The procedure and actions suggested by Mr Prakash above are really appreciated but before going further, I believe you must answer the following questions to community
a) How do you know that the employee is under duel employment and about such act?
b) Did you get the information about him / his duel employment by any of your employees or anything that you have noticed which make you felt like he supplying your company data to another companies.
c) Are you holding a senior/authorised position in your department which helps you to take direct actions?
d) What actions you have taken so far?
e) Have you shared the same with any of your seniors or anyone in your team?
The aforesaid questions are really important and need to answer, so that, there would have no place for misleading information/communication and you can get the appropriate solutions/suggestion which will also help others.
And hope the relevant terms and conditions you have included in the appointment letters to prevent or fight with this kind of problem like NDA (asked by Ms (Cite Contribution))
And if you are confident about his act, I�m hoping that you have perfect material that can prove the same, you can take action against the employee, and otherwise you need to do your homework before going further because it is really important for issuing even a notice to employees in this regard.
To collect proof against him, need to perform:
- need to share the same with his direct reportee/Boss/TL/Supervisor and IT Head immediately
- take help of IT department to know his all computerized activities.
- can take help of his coworkers secretly (and CCTV CAM if you have the installation in your office premises).
- You can also control his official work and timing by help of his Senior/Boss/TL/Supervisor.
- PC/Laptop allotted to the employee can also be accessed by IT people to know about data transmission, and reauthorization for personal email and use of other websites.
Subsequently, if you found good and relevant information/poof against him, he can be terminated immediately by referring the breach of T&Cs of employment and need to file an FIR against the same employee for the act, and set an example for other employees too
From India, Gurgaon
Dear All,
In this case, first, it is necessary to gather evidence and have witnesses. If the Enquiry is challenged by the Delinquent Employee in the Court and you are not ready with Sufficient Evidence & Witness, the case decision can be in favor of the employee. Also, after the issue of a Show Cause Notice, you need to give sufficient time for him to reply and then issue a Charge sheet mentioning the Allegations on the employees. You need to appoint a qualified and experienced Enquiry Officer. If the Enquiry Officer is not experienced, again the Enquiry will be a mess. So please take care of this. Also, if the charges are proved, you can forfeit terminal benefits like Gratuity payable to him on termination if he has completed 5 years of service under Section 4(6) of the Gratuity Act. Please contact if you need any guidance on the matter.
Regards,
Sumeet
From India, Mumbai
In this case, first, it is necessary to gather evidence and have witnesses. If the Enquiry is challenged by the Delinquent Employee in the Court and you are not ready with Sufficient Evidence & Witness, the case decision can be in favor of the employee. Also, after the issue of a Show Cause Notice, you need to give sufficient time for him to reply and then issue a Charge sheet mentioning the Allegations on the employees. You need to appoint a qualified and experienced Enquiry Officer. If the Enquiry Officer is not experienced, again the Enquiry will be a mess. So please take care of this. Also, if the charges are proved, you can forfeit terminal benefits like Gratuity payable to him on termination if he has completed 5 years of service under Section 4(6) of the Gratuity Act. Please contact if you need any guidance on the matter.
Regards,
Sumeet
From India, Mumbai
Dear Sheetal,
Theft or sharing company information with rivals, and being on the payroll of one company while working for another, are relevant and established acts of misconduct punishable by the current employer. This may also lead to a loss of confidence.
The relevant issue for you to establish is:
1. Whether the employee has been working for another company without permission/authorization from your company, which could establish the charge of double employment.
2. Whether the employee has been passing on all data, including vendors, costs, clients, etc., to another firm, which could lead to two additional charges.
After meticulously working out the above, please issue a Show Cause notice, followed by a charge sheet, and conduct an inquiry through a competent Enquiry Officer. Allow the employee to present their side of the story/evidence for rebuttal, and take appropriate action accordingly.
If the above charges are proven, the charge of loss of confidence may be sufficient to bypass the need for an inquiry, but I recommend proceeding with one to be on the safe side.
S.K. Johri
From India, Delhi
Theft or sharing company information with rivals, and being on the payroll of one company while working for another, are relevant and established acts of misconduct punishable by the current employer. This may also lead to a loss of confidence.
The relevant issue for you to establish is:
1. Whether the employee has been working for another company without permission/authorization from your company, which could establish the charge of double employment.
2. Whether the employee has been passing on all data, including vendors, costs, clients, etc., to another firm, which could lead to two additional charges.
After meticulously working out the above, please issue a Show Cause notice, followed by a charge sheet, and conduct an inquiry through a competent Enquiry Officer. Allow the employee to present their side of the story/evidence for rebuttal, and take appropriate action accordingly.
If the above charges are proven, the charge of loss of confidence may be sufficient to bypass the need for an inquiry, but I recommend proceeding with one to be on the safe side.
S.K. Johri
From India, Delhi
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