What legal action can be taken against employees having conflicts of interest?
From India, Delhi
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From India, Delhi
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Dear Varsha,
Needless to dwell much on the general definition of the term conflict of interest. In an employment context, it denotes the personal interests of an employee running counter to the interests of the organization wherein he is employed, resulting in a biased discharge of his duties thereby causing disrepute or pecuniary losses to the organization. Instances can be many, such as nepotism, sexual harassment, divulgence of trade/business secrets to competitors, and the like. At times, there can even be an innocent conflict of interest too. Therefore, employers should mention the possible conflicting interests of employees in the employment guidelines. The employees should, at best, keep themselves away from situations that would create conflicts of interest or make a disclosure to their management.
Preventive action in this regard can be the creation of a non-compete policy for the organization. Punitive action is the removal of such employees from the organization.
From India, Salem
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6185Needless to dwell much on the general definition of the term conflict of interest. In an employment context, it denotes the personal interests of an employee running counter to the interests of the organization wherein he is employed, resulting in a biased discharge of his duties thereby causing disrepute or pecuniary losses to the organization. Instances can be many, such as nepotism, sexual harassment, divulgence of trade/business secrets to competitors, and the like. At times, there can even be an innocent conflict of interest too. Therefore, employers should mention the possible conflicting interests of employees in the employment guidelines. The employees should, at best, keep themselves away from situations that would create conflicts of interest or make a disclosure to their management.
Preventive action in this regard can be the creation of a non-compete policy for the organization. Punitive action is the removal of such employees from the organization.
From India, Salem
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What if company has taken apology letter from employee and then terminated the employee and asking for penalty amount for the same. What should that employee can do to get release from that penalty.
From India, Delhi
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From India, Delhi
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Dear Varsha,
Would you mind providing proper background information on what exactly happened? What was the type of misconduct, what was the designation of the employee, was the domestic enquiry conducted before awarding the information and so on. Please provide the information in chronological sequence. In fact, this is the basic expectation from the member who raises the post. Such posts could get deleted also; nevertheless, it was courtesy of senior members like Mr. Umakanthan M who has given the reply, notwithstanding the inadequate information.
The "Conflict of Interest" is defined as, "a situation in which the concerns or aims of two different parties are incompatible" or "a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity." Please check whether the incident that has happened in your company fits within the definition. If not, then better not to do a further discussion on "conflict of interest" but as a matter of procedure of handling discipline.
Thanks,
Dinesh Divekar
From India, Bangalore
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Would you mind providing proper background information on what exactly happened? What was the type of misconduct, what was the designation of the employee, was the domestic enquiry conducted before awarding the information and so on. Please provide the information in chronological sequence. In fact, this is the basic expectation from the member who raises the post. Such posts could get deleted also; nevertheless, it was courtesy of senior members like Mr. Umakanthan M who has given the reply, notwithstanding the inadequate information.
The "Conflict of Interest" is defined as, "a situation in which the concerns or aims of two different parties are incompatible" or "a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity." Please check whether the incident that has happened in your company fits within the definition. If not, then better not to do a further discussion on "conflict of interest" but as a matter of procedure of handling discipline.
Thanks,
Dinesh Divekar
From India, Bangalore
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If the termination is in "Workman" under the Industrial Disputes Act and the action of the management in terminating an employee without conducting a proper inquiry and punishment that is disproportionate to the offense/loss to the company, the workman can challenge the illegal dismissal before the Labor Authority under the Industrial Disputes Act.
From India, Pune
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From India, Pune
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Dear Varsha Chaudhary,
You can sue in court, lodge an FIR, and initiate disciplinary action against conflicts of interest, as you deem best for the cause. At the same time, you should include a clause on Conflicting Interests in the standing order or employment policy.
An apology typically signifies seeking forgiveness for an action. If you intend to terminate an individual even after an apology, it may be viewed as contradictory. Therefore, it is advisable to call the employee in question for an explanation. Avoid jumping to conclusions based on assumptions; instead, follow the proper procedures before considering termination. Please refrain from using phrases or terms that are not defined in your company policy.
Thank you.
From India, Mumbai
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You can sue in court, lodge an FIR, and initiate disciplinary action against conflicts of interest, as you deem best for the cause. At the same time, you should include a clause on Conflicting Interests in the standing order or employment policy.
An apology typically signifies seeking forgiveness for an action. If you intend to terminate an individual even after an apology, it may be viewed as contradictory. Therefore, it is advisable to call the employee in question for an explanation. Avoid jumping to conclusions based on assumptions; instead, follow the proper procedures before considering termination. Please refrain from using phrases or terms that are not defined in your company policy.
Thank you.
From India, Mumbai
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