Hi Seniors,
This is Anand. I am working in a Manufacturing Organization. Recently, the management fired a senior employee (as per designation) within 3 months of his joining. Additionally, they plan to impose a penalty of 50K on his full and final settlement. I am unsure if it is possible for the management to terminate the employee and also deduct 50K as a penalty from his full salary. In my understanding, only one penalty should be imposed, either termination or a salary deduction. Could you please guide me on this matter as per labor law?
Thanks
From India, New Delhi
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2This is Anand. I am working in a Manufacturing Organization. Recently, the management fired a senior employee (as per designation) within 3 months of his joining. Additionally, they plan to impose a penalty of 50K on his full and final settlement. I am unsure if it is possible for the management to terminate the employee and also deduct 50K as a penalty from his full salary. In my understanding, only one penalty should be imposed, either termination or a salary deduction. Could you please guide me on this matter as per labor law?
Thanks
From India, New Delhi
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An employee can be terminated from his service for any misconduct committed by him, provided that such misconduct is proved beyond doubt by way of conducting a domestic enquiry by appointing an impartial outsider giving full opportunity to the employee to defend his case in observance of the principle of natural justice. Otherwise, the termination itself becomes bad in law.
If there is any misappropriation of funds or damage to any property or any such misconduct which leads to financial loss and such misconduct was again proved through a domestic enquiry, then in that case, the employer can adjust the amount of loss from the full and final settlement.
Without studying the entire case history in detail, it is really very difficult to give an opinion.
From India, Kolkata
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If there is any misappropriation of funds or damage to any property or any such misconduct which leads to financial loss and such misconduct was again proved through a domestic enquiry, then in that case, the employer can adjust the amount of loss from the full and final settlement.
Without studying the entire case history in detail, it is really very difficult to give an opinion.
From India, Kolkata
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Normally, an inquiry into the matter is called. The employee is given a chance to be heard. The complete investigation of the case, with all the documentation and proof, needs to be collected. Management should ensure that all activities/proceedings are done within the framework of policies and legal bindings. The fact of the matter here is not punishment and penalty. The whole process should be acceptable to the parties so that neither the employee nor the employer should face problems later.
Generally, a committee is set up for such matters to resolve the issues internally, which includes members from the union, employees, management, etc. However, unless the case is known thoroughly, it is difficult to give any opinion.
From India, Vadodara
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Generally, a committee is set up for such matters to resolve the issues internally, which includes members from the union, employees, management, etc. However, unless the case is known thoroughly, it is difficult to give any opinion.
From India, Vadodara
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