Note: The Industrial Employment (Standing Orders) Act, 1946 (SO Act) provides a list of actions
considered misconduct. If a company hasn’t drafted its standing orders, the model ones from the SO
Act apply. However, certain IT/ITeS establishments in Bangalore are exempt from this Act, provided
they meet specific conditions. In such cases, the definition of misconduct comes solely from the
employment contracts and company policies.
Certain IT/ITeS establishments in Bangalore have exemptions from the SO Act. These exemptions are
granted when companies meet specific criteria, such as having their own comprehensive misconduct
policies or being part of certain industry sectors. It’s essential for employees in these establishments
to be familiar with their individual company policies, as they might differ from the standard SO Act
guidelines.
Case Study 1: The Consequences of Financial Workplace Misconduct in India
Mr. Sharma, a senior accountant at a renowned IT firm in Bangalore, was entrusted with the
responsibility of managing the company’s finances. Over time, he started diverting small amounts of
money into a personal account, thinking it would go unnoticed. However, during an annual audit,
discrepancies were found. A detailed investigation revealed Mr. Sharma’s actions. Not only was he
terminated without notice, but he also faced legal consequences of workplace misconduct under the
Indian Penal Code. This incident served as a stark reminder to all employees about the severe
repercussions of financial misconduct.
What’s The Process For Termination Due To Misconduct?
Terminating an employee on misconduct grounds requires adherence to specific principles. For
certain misconduct types, like sexual harassment or unauthorized absence, the process varies.
Termination due to misconduct in India is stigmatic, meaning it carries a negative connotation, and
doesn’t require any notice or payment in lieu of notice.
In addition to misconduct, poor performance is another ground for termination due to misconduct in
India that necessitates a distinct approach. Both employers and employees must understand how
performance issues are handled legally. Our detailed exploration of Can Employees Get Fired for
Poor Performance? delves into the legal backdrop, processes involved, and the rights and duties of
each party in cases of performance-based dismissals. We discuss the importance of Performance
Improvement Plans (PIPs) and the judicial viewpoint on performance terminations, offering a
comprehensive guide for navigating these challenging situations.
How Does The Law Address Sexual Harassment?
