Tag: Employment Policies

Disciplinary action refers to measures taken by employers against employees for misconduct, violation of company policies, or breach of work ethics. In India, disciplinary proceedings in workplaces are governed by various labor laws and principles of natural justice. A domestic enquiry is an internal investigation conducted by an employer before imposing any penalty on an employee. It ensures that the employee gets a fair chance to present their side of the case.

Legal Framework for Disciplinary Action

Disciplinary action in India is primarily governed by:

1. Industrial Employment (Standing Orders) Act, 1946: It provides a framework for disciplinary action in industrial establishments.
2. Industrial Disputes Act, 1947: It covers termination, suspension, and retrenchment procedures.
3. Indian Contract Act, 1872: Covers employer-employee contractual obligations.
4. Shops and Establishments Act (varies by state): Regulates disciplinary actions in commercial establishments.
5. Companies Act, 2013: Governs corporate employees and executives.

Types of Misconduct Leading to Disciplinary Action

Misconduct is broadly classified into:

• Minor Misconduct: Late coming, minor negligence, insubordination, inefficiency, etc.
• Major Misconduct: Fraud, theft, violence, sexual harassment, unauthorized absence, etc.

Principles of Natural Justice in Disciplinary Proceedings

Every disciplinary action must follow natural justice principles:

1. No one shall be a judge in their own case: The enquiry officer must be unbiased.
2. Fair hearing: The accused employee must be given a chance to defend themselves.
3. Evidence-based decision: The decision must be based on facts and evidence.

Steps in Disciplinary Action and Domestic Enquiry:

1. Preliminary Investigation

• Conducted to verify the complaint before initiating formal proceedings.
• If the complaint is found baseless, no further action is taken.

2. Issue of Charge Sheet

• If misconduct is confirmed, a charge sheet is issued to the employee.
• The charge sheet specifies allegations, evidence, and asks for an explanation.
• The employee is given a reasonable time to reply.

3. Employee’s Response to the Charge Sheet

• The employee may admit or deny the charges.
• If the explanation is satisfactory, the case may be closed.
• If not, a domestic enquiry is initiated.

4. Appointment of an Enquiry Officer

• The employer appoints an independent Enquiry Officer to conduct the investigation.
• The officer must not have any personal interest in the case.

5. Conduct of Domestic Enquiry

• The employee is given a fair opportunity to defend themselves.
• Witnesses and evidence are examined.
• Both employer and employee can present their case.

6. Submission of Enquiry Report

• The enquiry officer submits a detailed report with findings and recommendations.
• If the employee is found guilty, disciplinary action is proposed.

7. Final Decision and Punishment

• The employer considers the report and takes action such as:
  • Warning – For minor misconduct.
  • Suspension – Temporary removal from service.
  • Demotion – Reduction in rank/pay.
  • Termination/Dismissal – Permanent removal from service.

8. Appeal and Review

Employees can appeal against the decision through internal grievance mechanisms or labor courts.

Landmark Judgments on Domestic Enquiry in India:

1. State of Haryana v. Rattan Singh (1977): Emphasized the need for fairness in domestic enquiries.
2. Workmen of Motipur Sugar Factory v. Motipur Sugar Factory (1965): Established that employers must follow procedural fairness.
3. D.K. Yadav v. JMA Industries Ltd. (1993): Ruled that termination without following principles of natural justice is void.