Hi All, Greetings! I would like to know the legal action to be taken against employee if he/she had taken payment into his or her personal account. Please suggest. Regards Nivan
From India, Indore
From India, Indore
First collect documentary evidence of this irregularity. Then ask for written explanation by issue of Show Cause notice Based uponn reply further action can be considered.
From India, Pune
3131From India, Pune
Dear Nivan,
This is in addition to what Mr Nathrao has said. Consider the following questions for the investigation:
a) What is the designation of the employee, in what capacity did he work?
b) What was the nature of financial transaction? Who paid the money? Why the payer did not feel irregular to transfer funds to employee's personal account? Was employee authorised to involve in financial transaction?
c) For the financial transaction that has taken place, is there SOP well in place? Did employee do violation of SOP? If not SOP, then are there written orders on how to handle money transaction?
d) Who discovered this financial transaction? What was the time gap? In lieu of money, did employee give any material to the payer? If yes, then was the shortage of material detected?
e) Did HOD or Manager of the employee discover this anomaly? If not, then why it escaped from his/her attention?
f) Did you call employee and ask verbal explanation? What was his defence? What is the level of credibleness of his explanation?
About Legal Action: - Far from disciplinary action, you wanted to take "legal" action. Nevertheless, if you do not have laid down procedure on how to handle financial transaction, then I doubt whether you can take any action against. For taking action against employee, blameworthiness must be clearly established as to which rule or regulation has the employee violated. Yes, all company-related transaction must take place through company's account and it is wrong to transfer funds to one's personal account but sans laid down rules, law does not recognise "wrongness".
Thanks,
Dinesh Divekar
From India, Bangalore
This is in addition to what Mr Nathrao has said. Consider the following questions for the investigation:
a) What is the designation of the employee, in what capacity did he work?
b) What was the nature of financial transaction? Who paid the money? Why the payer did not feel irregular to transfer funds to employee's personal account? Was employee authorised to involve in financial transaction?
c) For the financial transaction that has taken place, is there SOP well in place? Did employee do violation of SOP? If not SOP, then are there written orders on how to handle money transaction?
d) Who discovered this financial transaction? What was the time gap? In lieu of money, did employee give any material to the payer? If yes, then was the shortage of material detected?
e) Did HOD or Manager of the employee discover this anomaly? If not, then why it escaped from his/her attention?
f) Did you call employee and ask verbal explanation? What was his defence? What is the level of credibleness of his explanation?
About Legal Action: - Far from disciplinary action, you wanted to take "legal" action. Nevertheless, if you do not have laid down procedure on how to handle financial transaction, then I doubt whether you can take any action against. For taking action against employee, blameworthiness must be clearly established as to which rule or regulation has the employee violated. Yes, all company-related transaction must take place through company's account and it is wrong to transfer funds to one's personal account but sans laid down rules, law does not recognise "wrongness".
Thanks,
Dinesh Divekar
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Legal Clarification on Absconding Employee, Contract Labour Engagement & Leave Entitlement Ammen.pdf
Employee Appraisal Form new.doc