Misconduct & Disciplinary Action

Charge Sheet & Domestic Enquiry

MISCONDUCT
WHAT IS MISCONDUCT?

Any act or omission on the part of an employee which is a

breach of any duty, obligation or assignment arising under
or flowing from any law or contract of employment or
service rules or standing orders, settlements or awards or
improper conduct or wrongful behaviour is a misconduct.
TYPES OF MISCONDUCT
MINOR MISCONDUCT

Minor Misconducts
The following acts or omission on the part of an employee
shall amount to minor misconduct:
 Late coming
 Absence from duty without leaves for a period of less than
six days
 Loitering, gossiping in department during working hours
 Failure to wear tight clothes/specified uniform.
 Negligence of duties or neglect of work.
 MAJOR MISCONDUCT

 Habitual absenteeism without leave for more than 10 consecutive days or over
staying the sanctioned leave without sufficient grounds.
 Theft, fraud or dishonesty in connection with the employer’s business or
property.
 Taking or giving bribes or any illegal gratification.
 Habitual breach of any standing order or any law applicable to establishment.
 Collection without the permission of the manager or any money within the
premises of establishment.
 Going on legal strike or abetting, inciting, instigation.
 Willful slowing down in performance in work or instigation there of.
 Willful insubordination or disobedience of any lawful and reasonable order of a
superior.
 MAJOR MISCONDUCT

 Engaging in trade within the premises of establishment.

 Drunkenness, Riotous, Disorderly or indecent behavior on the premises of
the establishment.
 Commission of any acts subversive of discipline or rude behavior on the
premises of the establishment.
 Habitual neglect of work or habitual negligence.
 Canvassing for union membership or collection of union funds within the
premises of the establishment.
 Willful damage to work in process or any property of the establishment.
 Holding meetings inside the premises of establishment without the
permission of the manager.
 Disclosing to any unauthorized person any information in regard to the
processes of the establishment.
 MAJOR MISCONDUCT

 Gambling within the premises of establishment.

 Smoking or spitting on the premises of the establishment, where it is
prohibited.
 Failure to observe safety instructions notified by the employer or
interference with the safety devices.
 Distributing or exhibiting within the premises of establishment and bills,
pamphlets and posters.
 Refusal to accept a charge sheet order or other communication served in
accordance with the standing orders.
 Unauthorized possession of lethal weapon in the establishment.
 PENALTIES FOR MINOR MISCONDUCT

 Warning letter
 fine
 Passing adverse entry in service records,
 Recovery of loss of goods for which the concerned workman
is accountable,
 Recovery from wages of the whole or part of any loss caused
by the workman through negligence.
 PENALTIES FOR MAJOR MISCONDUCT

The following penalties may be imposed for good and sufficient reasons if an
employee found guilty of major misconduct :

 Warning or censure,
 Withholding of increment,
 Fine,
 Stopping promotion,
 Demotion,
 Suspension,
 Discharge, dismissal,
 Vacation of company quarter or any other punishment which the manager
may deem fit
Disciplinary Action
Why Indiscipline?

 Ignorance of rules

 Physical/ mental incapability

 Absence of proper training

 Discontented workmen

 Misguidance by Trade Union leaders

 Absence of standard policies of handling

discipline

 Uncongenial working conditions

Indiscipline requiring action

 Absenteeism

 Habitual Late coming

 Overstaying leave

 Disobeying rules / standing orders

 Insubordination

 Misappropriation of funds or valuables

 Misconduct
Procedures for taking action

 Standing Orders framed under the Industrial

Employment (Standing Orders) Act, 1946 to be

followed.

 Ensure principle of natural justice.

 Serving Charge sheet

 Holding of Domestic Enquiry

 Serving Show Cause Notice

 Order of punishment
Sequential Order of Action

Examination of complaints
Preliminary Enquiry/Investigation
Drafting and issue of charge-sheet Memo.
Minor penalty proceedings
Major penalty proceedings
Inquiry proceedings
Charge Sheet
Charge Sheet – A Legal Document

 Memorandum of charges
 Statement of allegations of misconduct/ omission/ negligence
 No particular format prescribed for charge sheet in any Labour enactment
 The object is to give the employee exact idea of the misconduct committed by
him so that he may get reasonable opportunity to defend.
 It is advisable to obtain a written complaint before issuing a charge-sheet and
as far a possible conduct a preliminary enquiry.
 The charge-sheet should be drafted in a clear and unambiguous language.
 Wherever possible, the relevant clause of the company’s standing orders
should be mentioned.
 If the charges are related to a incident, the date, time, place of occurrence
should be mentioned.
 The charge sheet framed should be signed by the disciplinary authority.
 If the charge sheet is vague, whole enquiry will be vitiated.
Requisites of Charge sheet

 It should contain complete picture of misconduct

 It should state that the act of commission or omission
resulting in misconduct is violation of a particular
clause of standing order
 Language to be as per Standing Orders or as required by
the delinquent
 Enclose a list of witnesses in support of charges
 Requisites of Charge sheet
 It should contain complete picture of misconduct
 It should state that the act of commission or omission resulting in
misconduct is violation of a particular clause of standing order
 Language to be as per Standing Orders or as required by the delinquent
 Enclose a list of witnesses in support of charges

 Charges leveled should be specifically stated- avoid ‘ etc...etc.’/ ‘

other’/ ‘any’/ ‘ some people’ like expressions.
Be specific

 The amount misappropriated should be specific sum and not ‘

around’.
 Person manhandled should be Mr./Ms. X and not ‘ some one’.
 Time of misconduct should be exact- avoid ‘around’ time.
 Charge sheet for using offending language should contain the exact
word used.
Serving of Charge sheet

• The charge-sheet framed should be served personally with

Acknowledgement.
• As stated in the Standing Orders
• Serve the charge sheet personally against signature on the duplicate
copy/ delivery book
• If absent/ on leave/ under suspension, paste it on the wall of the
residence of the delinquent
• By Registered Post
• Displaying in the Notice Board of the company
• Publishing in the regional newspaper
Suspension Pending Enquiry

This is required when management considers that his physical presence

might endanger the safety of other workman or if it is apprehended
that he might intimidate (Scare) others or tamper with the evidence. In
such case subsistence allowance should be paid as per law.
Considering of Explanation

After a charge-sheet has been served, within the specified time for reply,
how he may react ?
Admitting the charges and requesting for mercy
Denying the charges and requesting for an enquiry
Not submitting any explanation at all
•Requesting for more time to submit explanation.
• Giving an ambiguous or obscure reply.
Notice for the enquiry
After consideration of the explanation of the charge-sheeted employee or when no
reply received with-in the specified time limit, the management should issue an
office order appointing an enquiry officer or an enquiry committee, to hold the
enquiry of the charge-sheet.
Who can be an enquiry officer ?
He can be an official of the company or even an outsider, but care should be taken
to appoint only such a person who is neither a witness nor personally connected or
interested in the matter
Domestic Enquiry
Objective & Purpose
Objective:
To highlight the procedure for a fair and proper domestic enquiry
as per requirements of law.
Why Domestic Enquiry?
In today’s context no employer can discharge or dismiss a
delinquent workman even for a serious misconduct without
following an elaborate procedure for taking disciplinary action.
It is only when the workmen is found guilty of the charge in an
enquiry conducted as per the principal of natural justice, that
the employer after following the procedure can punish him as
per the company’s standing orders.
Principal of natural justice :
No man shall be the judge in his own cause
Both sides shall be heard.
Rules of natural justice:

 The employee proceeded against had been informed clearly of the

charges leveled against him.

 The witnesses are examined ordinarily in the presence of the

employee in respect of the charges

 The employee is given fair opportunity to cross-examine the

witnesses

 The employee has been given reasonable opportunity to defend.

 Domestic Enquiry
 Follow rules laid down in Standing Orders
 Purpose of domestic enquiry -
Provide delinquent an opportunity to defend the charges
Provide employer an opportunity to evaluate the situation and decide the penalty
to be imposed
Notice of Enquiry to be served
o Notice to show the Date and Time of enquiry
o Venue of holding enquiry
o Name of the Enquiry Officer
o Notice to be served in the same manner as followed to serve charge
sheet
o Workman shall have right to appoint a Defense Helper
o When legally trained person represents management in enquiry,
workman shall also be allowed to be represented by lawyer (Hindustan
Teleprinters Ltd Vs Mr. Rajan Isaac.)
Recording the Evidences

 Question- Answer pattern may be followed.

 Statement of Management to be taken first.

 Cross examination by employee/ helper.

 Take signature of the concerned on record.

 Examine and cross examine witnesses.

 Object/ Disallow irrelevant questions.

 Not mandatory that procedure laid down in the Code of Criminal

Procedure, 1973 or the Evidence Act, 1872 to be followed.

(Mahindra and Mahindra Ltd. Vs Sunil Yeshwant Pandit and

 Show Cause Notice
 Before punishment is initiated a Show Cause Notice highlighting the

charges, findings of the enquiry and possible penalty imposed on the

delinquent shall also be served calling on him to show cause ‘why action

including discharge or (even dismissal) shall not be taken against’ the

delinquent.

 Though serving of such notice will not make the process of enquiry invalid

(as decided in S. Shenbagaraj Vs Additional Commissioner of Industries

and Commerce, Chepauk and others.), it is advisable to give the

employee a final opportunity before punishment is inflicted.

 Enquiry report to be furnished to the employee

Order of Punishment

 Principles of natural justice to be followed

 Punishment should not violate section 73 of the ESI Act - notice of
dismissal or discharge given to an employee during the period the
employee is in receipt of sickness, maternity or other benefit shall
be invalid.
 Order issued without holding a domestic enquiry or after holding a
defective enquiry will not stand since Labour Court/ Tribunal can
interfere with such order as provided u/s 11A of the Industrial
Disputes Act, 1947.
Charge sheet- absenting without intimation

To Date:
-------------
Sub: Absenting without intimation-

You have been absent since_____ (date)/ overstaying leave granted

since_____ (date)
Absenting without leave/ overstaying of leave is an offence as per rule ___
of our Standing Orders and as such your act of absenting without
intimation is a misconduct which attracts such punishment including
termination of service.
Accordingly you are hereby called upon to explain in writing within 48
hours as to why appropriate action should not be taken against you.

Sd/-
Appropriate Authority/ Authorized Signatory
Charge sheet- misbehavior

To Date:
-------
Sub: Misbehaving with fellow Worker

It is reported that on ____(date) at _____(time) you misbehaved with

Mr./Ms._____ (name), ____ (designation) in the presence of ______
(as witnesses)
Disobeying orders and misbehaving are serious misconduct as per
rule____ of our Standing Orders which attract punishment including
dismissal from service.
Accordingly you are hereby called upon to explain in writing within 48
hours as to why appropriate action should not be taken against you.

Sd/-
Appropriate Authority/ Authorised
Signatory
Notice of enquiry

To Date:
--------
Sub: Enquiry u/r ___ of Standing Orders
Ref: Charge sheet No.____ dated______
Your explanation dated____

Since the explanation given by you as cited above is found

unsatisfactory, a domestic enquiry u/r ____ of the Standing Orders
has been initiated to decide on the charges.
The enquiry will commence at 9.30 am on ___ (date) at _____ (venue)
You are hereby required to present in person with or without a helper
to give any clarification to defend the charges against you.
Mr./Ms. ____ will be the Enquiry Officer.
Sd/-
Authorised Signatory
Enquiry Proceedings
Enquiry proceedings in to the charge sheet No____ dated ___ issued to
Mr.___
(Time, date and place of enquiry)
Present
1. Charge sheeted employee
2. Defense helper
3. Management representative
The charges leveled against the employee were read over and explained to
the employee.
(Examination of management witness- statement in support of charges)
Name and details of witness
Statement/ questions and answers
Signature of witness
Signature of charge sheeted employee with a declaration that the
statement has been recorded in his presence
Signature of Enquiry Officer
(Cross Examination by Employee/ defense helper)
-Same process as above-
(Examination of witness against charges)
-Same process as above-
(Cross Examination by management representative)
-Same process as above-
* If any one does not want to cross examine, the same may be
recorded as “ opportunity given for cross examination but declined to
cross examine” with signatures
Show Cause Notice
To
Date
---------
Sub: Show Cause Notice
Ref: Charge Sheet, Explanation, Enquiry report
WHEREAS you were charge sheeted for an offence as stated.
AND WHEREAS you were granted an opportunity to defend the charges by
way of Domestic enquiry which commenced on ____ and ended on ___
(dates)
AND WHEREAS you have failed to prove your innocence before the Enquiry
Officer.
NOW THEREFORE, the management is constrained to take disciplinary
action against you.
Without prejudice and following the Enquiry Officer’s report your act of
omission/ commission has been proved to be a serious misconduct which
attracts punishment which may extend to dismissal from service.
THEREFORE, you are hereby called upon to show cause why disciplinary
action including dismissal should not be taken against you/ why you should
not be removed from service. A copy of the findings of the Enquiry Officer
is enclosed herewith for your perusal.
Your written reply should reach the undersigned within____ days.
Sd/-
Authorised Signatory
Show Cause Notice
To
Date
---------
Sub: Show Cause Notice
Ref: Charge Sheet, Explanation, Enquiry report
WHEREAS you were charge sheeted for an offence as stated.
AND WHEREAS you were granted an opportunity to defend the charges by
way of Domestic enquiry which commenced on ____ and ended on ___
(dates)
AND WHEREAS you have failed to prove your innocence before the Enquiry
Officer.
NOW THEREFORE, the management is constrained to take disciplinary
action against you.
Without prejudice and following the Enquiry Officer’s report your act of
omission/ commission has been proved to be a serious misconduct which
attracts punishment which may extend to dismissal from service.
THEREFORE, you are hereby called upon to show cause why disciplinary
action including dismissal should not be taken against you/ why you should
not be removed from service. A copy of the findings of the Enquiry Officer
is enclosed herewith for your perusal.
Your written reply should reach the undersigned within____ days.
Sd/-
Authorised Signatory
Termination Order

To
Date
--------
Sub: Order of Termination of Service
Ref: Charge sheet No____ dated____
Pursuant to the charge sheet above referred and findings of enquiry report
dated____, the management has come to the conclusion that the charges
leveled against you have been proved categorically.
As you have been found guilty of serious misconduct, the management has
decided to dismiss you from service. However, on compassionate grounds,
we have decided to take a lenient step by imposing a lesser punishment by
discharging you from service with effect from/ with immediate effect.
You are, therefore, directed to settle your dues including salary dues and
handover the charges to Mr________ during office hours on_________
Sd/-
Authorized Signatory