grievances and disciplines

7/27/2019 Grievances and Disciplines

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GRIEVANCES HANDLING:

INTRODUCTIONEvery employee has certain expectations which he thinks must be fulfilled by the

organisation he is working for. When the organisation fails to do this, he develops a feeling

of discontent or dissatisfaction. When an employee feels that something is unfair in the

organisation, he is said to have a grievance. According to Jucius, a grievance is any

discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of

anything connected with the company which an employee thinks, believes or even feels to

be unfair, unjust or inequitable.

FEATURES

If we analyse this definition, some noticeable features emerge clearly:

1. A grievance refers to any form of discontent or dissatisfaction with any aspect of theorganisation.

2. The dissatisfaction must arise out of employment and not due to personal or familyproblems.

3. The discontent can arise out of real or imaginary reasons. When the employee feelsthat injustice has been done to him, he has a grievance. The reasons for such a

feeling may be valid or invalid, legitimate or irrational, justifiable or ridiculous.

4. The discontent may be voiced or unvoiced. But it must find expression in some form.However, discontent per se is not a grievance. Initially, the employee may complain

orally or in writing. If this is not looked into promptly, the employee feels a sense of

lack of justice. Now the discontent grows and takes the shape of a grievance.

5. Broadly speaking, thus, a grievance is traceable to perceived non-fulfilment ofonesexpectations from the organisation.

FORMS OF GRIEVANCES

A grievance may take any one of the following forms: (a) factual, (b) imaginary, (c) disguised

1.Factual

A factual grievance arises when legitimate needs of employees remain unfulfilled, e.g., wage

hike has been agreed but not implemented citing various reasons.

2.Imaginary


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When an employees dissatisfaction is not because of any valid reason but because of a

wrong perception, wrong attitude or wrong information he has. Such a situation may create

an imaginary grievance. Though management is not at fault in such instances, still it has to

clear the fog immediately.

3.Disguised

An employee may have dissatisfaction for reasons that are unknown to him. If he/ she are

under pressure from family, friends, relatives, neighbours, he/she may reach the work spot

with a heavy heart. If a new recruit gets a new table and almirah, this may become an

eyesore to other employees who have not been treated likewise previously

CAUSES

Grievances may occur for a number of reasons:

1.Economic

Wage fixation, overtime, bonus, wage revision, etc. Employees may feel that they are paid

less when compared to others.

2.Work environment

Poor physical conditions of workplace, tight production norms, defective tools and

equipment, poor quality of materials, unfair rules, lack of recognition, etc.

3.Supervision

This Relates to the attitudes of the supervisor towards the employee such as perceived

notions of bias, favouritism, nepotism, caste affiliations, regional feelings, etc.

4.Work group

Employee is unable to adjust with his colleagues; suffers from feelings of neglect,victimisation and becomes an object of ridicule and humiliation, etc.

5.Miscellaneous

These include issues relating to certain violations in respect of promotions, safety methods,

transfer, disciplinary rules, fines, granting leave, medical facilities, etc


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ADVANTAGES OF HAVING A GRIEVANCE HANDLING

PROCEDURE

The following are some of the distinct advantages of having a grievances handling

procedure:

1. The management can know the employees feelings and opinions about thecompanys policies and practices. It can feel the pulse of the employees.

2. With the existence of a grievance handling procedure, the employee gets a chanceto ventilate his feelings. He can let off steam through an official channel. Certain

problems of workers cannot be solved by first line supervisors, for these supervisors

lack the expertise that the top management has, by virtue of their professional

knowledge and experience.

3. It keeps a check on the supervisors attitude and behaviour towards theirsubordinates. They are compelled to listen to subordinates patiently and

sympathetically.

4. The morale of the employees will be high with the existence of proper grievancehandling procedure. Employees can get their grievances redressed in a just manner.

GUIDELINES FOR HANDLING GRIEVANCES

The following guidelines may help a supervisor while dealing with grievances. He need not

follow all these steps in every case. It is sufficient to keep these views in mind while

handling grievances (W. Baer, 1970).

1. Treat each case as important and get the grievance in writing.2. Talk to the employee directly. Encourage him to speak the truth. Give him a patient

hearing.

3. Discuss in a private place. Ensure confidentiality, if necessary.4. Handle each case within a time frame5. Examine company provisions in each case. Identify violations, if any. Do not hold

back the remedy if the company is wrong. Inform your superior about all grievances.

6. Get all relevant facts about the grievance. Examine the personal record of theaggrieved worker. See whether any witnesses are available. Visit the work area. The

idea is to find where things have gone wrong and who is at fault.

7. Gather information from the union representative, what he has to say, what hewants, etc. Give short replies, uncovering the truth as well as provisions. Treat him

properly.8. Control your emotions, your remarks and behaviour.


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9. Maintain proper records and follow up the action taken in each case.10.Be proactive, if possible. Companies like VSP, NALCO actually invite workers to

ventilate their grievances freely, listen to the other side patiently, explain the

reasons why the problems arose and redress the grievances promptly.


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Grievance Redressal

Grievance Redressal: There are 2 types of Grievance Redressal,1. Formal Grievance Redressal2. Informal Grievance Redressal.

Grievance Procedure / the Formal Grievance Redressal:Step by step process an employee must follow to get his or her complaint addressed

satisfactorily. In this process, the formal (written) complaint moves from one level of

authority (of the firm and the union) to the next higher level. Grievance procedures are

typically included in union (collective bargaining) agreements. A systematic grievanceprocedure is best means to highlight employee dissatisfaction at various levels.

Management, to this end, must encourage employees to use it whenever they have

anything to say.

Model Grievance Procedure & the Steps involved in a Grievance Procedure:The grievance procedure mainly being a voluntary measure was adopted by the Indian

Industries during the 16th Indian Labour Conference in 1958. Despite differences between

organizations, the common four phase model is largely applied by all industries. The fourstages of the machinery are briefly discussed here:

An aggravated employee shall just present his grievance verbally in person to theofficer designated and the answer should be given within 48hrs.

If the worker is not satisfied with the answer, he along with one departmentrepresentative will present the grievance to the departmental head. He will give his

judgment in 3 days or state the reason for delay.

If he is not satisfied yet, then he may be requested to refer the case to the grievancecommittee. The grievance committee will make recommendation within seven days.

Management has to implement it,

If even then he remains unsatisfied, he can report to the higher tier of themanagement for revision.

If the worker is still not satisfied with the decision then the union may ask forvoluntary arbitration and the decision of which will be binding on both the parties.

Informal Grievance Redressal Method:The aggrieved employee can directly approach his shift in charge or the section head (in

case of a major grievance) engage into a direct consultation and have his grievance resolved

amicably in stage I itself. Therefore, he not only saves himself from a lot of time but also
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mental tension and pressure, which many employees claim to have acquired during the

course of a formal grievance Redressal procedure.

GRIEVANCE PROCEDUREA grievance is a sign of employees discontent with job and its nature. An employee will

have certain aspirations and expectations which he thinks must be fulfilled by the

organization where he is working. When the organisation fails to satisfy the employees

needs, he develops a feeling of discontent or dissatisfaction. Thus, grievance is caused due

to difference between employee expectation and management practices.

Beach defines grievances as any dissatisfaction or feeling of injustice in connection with

ones employment situation that is brought to the notice of the management.

NEED FOR A GRIEVANCE PROCEDUREGrievance procedure is necessary for any organisation due to the following reasons.

1. Management can feel the pulse of the employees with regard to the policies andpractices of the organization

2. Employees get a chance to ventilate their feelings and let off steam through anofficial channel

3. Morale of the employees will be high when their grievances are redressed in a justmanner

4. It keeps a check on the supervisors attitude and behaviour towards theirsubordinates

BENEFITS OF GRIEVANCE PROCEDURE:According to Jackson, benefits that will accrue to both the employer and employees by

adopting grievance Redressal procedures are:

It encourages employees to raise concerns without fear of reprisal It provides a fair and speedy means of dealing with complaints It prevents minor disagreements developing into serious disputes It saves employers time and money as solutions are found for workplace problems It helps to build an organisational climate, based on openness and trust Enables the management to know the pulse of its employees by learning about their

feelings and opinions about the policies and practices of the organization.

Provides a channel to the aggrieved employees to express their grievances aboutvarious aspects of their jobs formally.


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Provides clues about the behaviour and attitude of the managers and supervisorstowards their subordinates.

Gives an assurance to the employees about the existence of a mechanism for theprompt Redressal of their grievance.

Keeps up the morale of the employees by ensuring that their grievance will beredressed in a fair and transparent manner

STEPS IN THE GRIEVANCE PROCEDUREA. Identify grievances: Employee dissatisfaction or grievance should be identified by

the management if they are not expressed. If they are ventilated, management has

to promptly acknowledge them.

B. Define correctly: The management has to define the problem properly andaccurately after it is identified / acknowledged.

C. Collect data: Complete information should be collected from all the parties relatingto the grievance. Information should be classified as facts, data, opinions etc.

D. Analyse and solve: The information should be analysed, alternative solutions to theproblems should be developed and the best solution should be selected.

E. Prompt Redressal: The grievance should be redressed by implementing thesolution.

F. Implement : Execute the solutionG. Follow up: Implementation of the solution must be followed up at every stage in

order to ensure effective and speedy implementation.


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DisciplineAccording to Richard D. Calhoon, Discipline is the force that prompts individuals of groups

to observe rules, regulations, standards and procedures deemed necessary for an

organization.

Discipline is the regulation and modulation of human activities to produce a controlled

performance. The real purpose of discipline is quite simple. It is to encourage employees to

confirm to established standards of job performance and to behave sensibly and safely at

work. Discipline is essential to all organised group action.

Definition of DisciplineWebsters Dictionary gives three basic meanings to the word discipline, the first being that

of training that corrects, moulds, strengthens, or perfects. The second meaning is control

gained by enforcing obedience and the third is punishment. By combining the first and

second definitions you can say that discipline involves the conditioning or moulding of

behaviour by applying rewards or you can say that discipline involves the conditioning or

moulding of behaviour by applying rewards or penalties. The third meaning is narrower in

that it pertains only to the act of punishing wrongdoers. Besides these broad definitions,

there are others referring to organisational life in particular, for example:

Discipline is a procedure that corrects or punishes a subordinate because a rule of

procedure has been violated.

Dessler, 2001

Discipline should be viewed as a condition within an organisation whereby Employees know

what is expected of them in terms of the organisations rules, Standards and policies and

what the consequences are of infractions.

Rue & Byars, 1996

From the above definitions, you can find the following elements:

The objective is orderly behaviour. Orderly behaviour is a group desire. Orderly behaviour assists the attainment of organisational goals When members behave appropriately as per rules, there is no need for disciplinary

action. This is self discipline.

When some members violate the rules and regulations, punitive actions are neededto correct them.

Punishment serves two purposes: first, to directly punish an individual for an offenceand secondly, to set an example for others not to violate the rules and regulations.


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Those employees who observe the rules and standards are rewarded by praise, by security

and often by advancement. Those who cannot stay in line or measure up to performance

standards are penalised in such a way that they can clearly learn what acceptable

performance and behaviour are. Most employees recognise this system as a legitimate way

to preserve order and safety and to keep everyone working towards the same

organisational goals and standards. For most employees, self discipline is the best discipline.

As often as not, the need to impose penalties is a fault of the management as well as of the

individual worker. For that reason alone, a supervisor should resort to disciplinary action

only after all else fails. Discipline should never be used as a show of authority or power on

the supervisors part.

Let us now distinguish the major aspects of discipline.

Negative Discipline:Negative discipline involves force or an outward influence. It is the traditional aspect of

discipline and is identified with ensuring that subordinates adhere strictly to rules, and

punishment is meted out in the event of disobedience or indiscipline. As you can see, in this

perspective strict penalties are levied for the violation of rules. It is, in fact, the fear of

punishment that works as a deterrent in the mind of the subordinate. Approaching

discipline from this kind of a perspective has been proving increasingly ineffective for

various reasons.

Positive Discipline:In this type of discipline subordinates comply with the rules not from fear of punishment,

but from the desire to cooperate in achieving the common goal of the organisation. In

positive discipline willingness to comply is most important. The emphasis here is on

cooperative efforts to secure compliance to organisational norms. It promotes emotional

satisfaction instead of emotional conflict, and the increased cooperation and coordination

reduces the need for formal authority. This approach to discipline will help you to achieve

both individual needs of the subordinates and organisational goals for you. It would

therefore motivate your subordinates to work with zeal and fulfil their needs. Positivediscipline, in other words, calls for internalisation by your subordinates of the objectives and

expected norms of behaviour in your organisation. The positive concept of discipline

assumes a certain degree of self-discipline.

Discipline as Self-control:Discipline at one level means training that corrects, moulds, strengthens, or perfects the

behaviour. Discipline, in this sense, refers to the development of an individual, i.e., ones

efforts at self-control for the purpose of adjusting oneself to certain needs and demands.

This is nothing but what you would call self-discipline. You will agree with us that it isextremely important to have this kind of self-discipline both in you and in your subordinates


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for effectively and efficiently achieving your organisational objectives. Here again the

emphasis is on establishing and ensuring a minimum degree of orderliness. This orderliness

is obtained in the modern work context by increasing the degree and extent of compliance

by subordinates. Let us examine it a little more closely.


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Standing OrdersThe term Standing orders refers to the rules and regulation which governs the conditions

of employment of workers. They specify the duties and responsibilities of both employers

and employees. Through standing orders, the condition of employment are sought to be

regularized, paving the way for industrial peace and harmony. The Industrial Employment

(standing orders) Act of 1946 provides for the framing of standing orders in all industrial

undertaking employing 100 or more workers. As per the provisions of the Act, employers

have to formulate standing orders in consultation with workers and submit to a certifying

officer.

The matters to be highlighted there in are:

(a) Classification of employees,

(b) Hours of work, holidays, payday, wage rates,

(c) Shift working,

(d) Attendance and late coming,

(e) Leave rules,

(f) Temporary stoppages of work,

(g) Termination, suspension and disciplinary actions, etc.

The certified copies of the standing orders must be displayed prominently inside theundertaking. Once certified, the standing orders are binding on the employer and the

employees. Violation of condition mentioned therein invite penalties. The Labour

Commissioner (Deputy Labour Commissioner, Regional Labour Commissioner) exercise the

powers of certifying officer and in that capacity has all the power of a civil court. The Act has

been amended a number of times, the latest in 1982. The 1982 Act provides for the

payment of a subsistence allowance to workers who are placed under suspension.

The prerequisite for the development and maintenance of healthy relationship between the

employers and the wage earners is the existence of satisfactory employment and workingconditions.

In their absence, industrial strikes, bickering and bitterness crop up. These can be held check

if conditions of employment and work are improved. In this context, standing orders play a

significant role. They refer to the rules and regulations which govern the conditions of

employment of workers. They specify the duties and responsibilities on the pat of both the

employer and the employees. They make both of them conscious of their own limitations as

they require, on the one hand, the employers to follow certain specified rules and

procedures as laid down regarding working hours, pay days, holidays granting of leave to

the employees, temporary stoppages of work, termination f employment, suspension or

dismissal in certain conditions. On the other hand, they require that the employees should


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adhere to the rule and regulations mentioned in the standing orders and create an attitude

among both the parties which is more favourable in achieving industrial harmony.

Object of standing ordersThe purpose of having standing orders at the plant level is to regulate industrial relations.

These define with sufficient precision the conditions of employment under the employers

and hold them liable to make the said conditions known to workmen employed by them.

These orders regulate the conditions of employment, discharge, grievances, misconduct,

disciplinary actions, etc., of the workmen employed in industrial relations. Unsolved

grievances can become industrial disputes and disciplinary action in the wake of disciplinary

proceedings against misconduct may lead to industrial unrest

In regard to the standing orders, the obligation of the employers is:

1. To submit draft standing orders with the required information to the certifying officer for

certification within the time limit set in the Act.

2. To act in conformity with the certifying standing orders in the day-to-day dealings with

the workmen;

3. Modify certified standing orders only with the approval of the certifying officer;

4. Post prominently the text of the certified standing orders in English or any other language

understood by the majority of the workmen near the entrance through which the majority

of workers enter the establishment and also in all departments where workmen are

employed.

The obligations of the workmen are:

(i) to work in conformity with the certified standing orders, and(ii) to comply with the provision of the Act the mode standing orders in regard to

modification and interpretation of these

The responsibility of enforcement of standing orders lies with officers, supervisors andothers entrusted with this task. Therefore, the cooperation and compliance of employees

and officials of unions is essential for the maintenance of cordial and industrial relations

between labours and management.

The faulty or inadequate application and administration of the standing orders may lead to

grievances and misconduct which might adversely affect the industrial relations.

The industrial employment (standing orders) Act, 1946, was amended in 1982, to provide

for payment of subsistence allowance to workmen who are kept under suspension, pending

domestic enquiry.


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Matters to be contained in the Standing Orders Classification of the workmen: temporary, casual, apprentices

Manner of intimating to workmen periods and hours of work, holidays, pay-days andwage rates

Shift working Attendance and late coming Conditions of, procedure in applying for, and the authority which may grant leave

and holidays

Requirements to enter premises by certain gates and liability to search Closing and reopening of sections of the establishments, or temporary stoppages Suspension or dismissal for misconduct and acts and omissions which constitute

misconduct

Procedure for Certification of Standing Orders On receipt of the draft standing order, the certifying officer shall forward a copy to

sent to trade union of the workmen functioning in the establishment

If no such union exists, to three representatives of workmen in the establishmentelected at a meeting called for the purpose

A notice in the prescribed form will be given inviting objections, if any, to the draftstanding orders within fifteen days of receipt of these orders.

After giving to the parties an opportunity of being heard, the certifying officer shalldecide whether or not any modification of the draft is necessary, and make an order

in writing accordingly.

In doing so, the certifying officer can adjudicate upon the fairness andreasonableness of the provisions in the drafts.

The certifying officer shall thereupon certify the standing orders with or withoutmodifications and forward the authenticated copies thereof to the employer and to

the trade union or other prescribed representatives of the workmen within seven

days from the date of his orders


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Acts of Misconduct

The following acts or omissions on the part of a workman shall amount to misconduct;

Going on an illegal strike Wilfully slowing down in performance of work Theft, fraud or dishonesty in connection with the employers business or property or

the theft of property of another workman within the premises of the establishment

Taking or giving bribes Habitual absence without leave or absence without leave for more than ten

consecutive days

Collection without the permission of the manager of any money within the premisesof the establishment except as sanctioned by any law for the law for the time being

in force

Engaging in trade within the premises of the establishment Drunkenness, riotous, disorderly or indecent behaviour on the premises of the

establishment

Habitual neglect of work Habitual breach of any rules or instructions Wilful damage to work in process or to any property of the establishment Holding meeting inside the premises of the establishment without the previous

permission of the manager or except in accordance with the provisions of any law

for the time being in force.

Disclosing to any unauthorised person any information Smoking and spitting on the premises of the establishment where it is prohibited by

the employer

Unauthorised possession of any lethal weapon in the establishment


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INDISCIPLINEIndiscipline refers to the absence of discipline. Indiscipline, therefore, means nonconformity

to formal and informal rules and regulations. We cannot afford indiscipline as it will affect

the morale, involvement and motivation of subordinates in the organisation. Indisciplineoften leads to chaos, confusion, and reduces the efficiency of the organisation. It often leads

to strikes, go-slows, and absenteeism, resulting in loss of production, profits and wages.

Forms of IndisciplineAbsenteeism, insubordination, violation of plant rules, gambling, incompetence, damage to

machine and property, strikes, dishonesty and other forms of disloyalty lead to industrial

indiscipline. These are all forms of misconduct against the management. If an act of an

employee is prejudicial or likely to be prejudicial to the interests of the employer or to his

reputation, it is misconduct. The act of an employee can become misconduct in thefollowing cases:

Where the act of a workman is inconsistent with the peaceful discharge of his dutytowards his employer;

Where the act of the employee makes it unsafe for the employer to retain him inservice;

Where the act of the employee is so grossly immoral that all reasonable men wouldnot trust that employee;

Where the conduct of the employee is such as to open before him ways for notdischarging his duties properly;

Where the conduct of the employee is such that the employer cannot rely on hisfaithfulness;

Where the conduct of the employee is insulting and insubordinate to such a degreeas to be uncomfortable with the continuance of a superior-subordinate relationship;

Where the workman is abusive or he disturbs the peace at the place of hisemployment; and

Where the employee is habitually negligent in respect of the duties for which he isengaged.

It is very difficult to lay down exhaustively as to what would constitute misconduct andindiscipline. It would depend upon the examination of facts. Some of the acts of misconduct

are mentioned in the Model Standing Orders as a part of the rules made under the

Industrial Employment (Standing Orders) Act of 1946. Non-performance of duty is a serious

misconduct, because it is basically inconsistent with the obligations of employment. Under

the act of negligence, an employee fails to give full care and attention on account of which

the work becomes defective, and production suffers both in quantity and quality. It is a

misconduct to cause disorder on the premises, intimidate, threaten or assault other

employees and use abusive language. Preventing the entry and exist of willing employees

and movement of goods to and from the factory, obstructing the work being carried on,

damaging the property of the employer, indulging in mischief or other objectionableactivities, occupying the employers premises or property, go-slow, etc. are forms of


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misconduct. Insubordination, assault or threat to superior officers, defamation, making false

complaint, is all acts of indiscipline. Non-performance of work during working office hours,

tampering with official records, and misappropriation of accounts are acts of indiscipline

which are considered to be of serious gravity.


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Show Cause Notice

Disciplinary ActionFollowing are some of the purposes and objectives of disciplinary action:

To enforce rules and regulations. To punish the offender. To serve as an example to others to strictly follow rules. To ensure the smooth running of the organisation. To increase working efficiency. To maintain industrial peace. To improve working relations and tolerance. To develop a working culture this improves performance.

Dessler (2001) opines that a fair and just discipline process is based on three foundations:

rules and regulations, a system of progressive penalties and an appeals process.

Let us probe this a bit more. Dessler (2001) states that a set of clear rules and regulations is

the first foundation. These rules address things like theft, destruction of company property,

drinking on the job and insubordination. The purpose of these rules is to inform employees

ahead of time as to what is and is not acceptable behaviour. This is usually done during theemployees orientation.

A system of progressive penalties is the second foundation of effective disciplining.

Penalties, according to Dessler, may range from oral warning to written warnings to

suspension from the job to discharge. The severity of the penalty is usually a function of the

type of offence and the number of times the offence has been committed.

Finally, there should be an appeals process as part of the disciplinary process; this helps to

ensure that discipline is meted out fairly and equitably.

Right to Take Disciplinary ActionRight to take disciplinary action emanates from employer-employee relationship and is

regulated by contract of employment, standing order of the company (for workers) or

conduct and discipline (appeal) rules (for supervisory staff) of the organisation promptness

in disciplinary cases is essential. It has to be ascertained which disciplinary rules are

applicable to the delinquent employee for taking action.


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DISCIPLINARY ACTION PROCEDURETo start with, based on any misconduct committed by the employee or complaint, a

preliminary enquiry is called for. Then disciplinary authority has to initiate action. The

following authorities are laid by the organisation for various levels of employees:

Disciplinary authority; Appellate authority; and Reviewing authority.

Based on judicial pronouncement, elaborate procedure has been evolved which has to be

followed to avoid infirmities in the disciplinary action. Various stages involved are briefly

indicated as under:

Preliminary enquiry, Framing and serving of charge sheet, Holding of domestic enquiry, Report of the enquiry officer, Consideration of the report of the enquiry officer by disciplinary authority, Order of punishment and its communication, and Appeal.

Disciplinary Action StepsThough there is no rigid and specific procedure for taking a disciplinary action, the

disciplinary procedure followed in Indian industries usually consists of the following steps:

(a) Issuing a letter of charge:When an employee commits an act of misconduct thatrequires disciplinary action, the employee concerned should be issued a charge

sheet. Charges of misconduct or indiscipline should be clearly and precisely

stated in the charge sheet. The charge sheet should also ask for an explanation

for the said delinquent act and the employee should be given sufficient time for

answering this.(b) Considerat ion of explanat ion:On getting the answer for the letter of charge

served, the explanation furnished is considered and if it is satisfactory, no

disciplinary action need be taken. On the contrary when the management is not

satisfied with the employee's explanation there is a need for serving a show-

cause notice.(c) Show-cause not ice:Show-cause notice is issued by the manager when he believes

that there is sufficient prima facie evidence ofemployee's misconduct. However,

this gives the employee another chance to account for his misconduct and rebut
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the charges made against him. Enquiry should also be initiated by first serving

him a notice of enquiry indicating clearly the name of the enquiring officer, time,

date and place of enquiry, etc.

After consideration of the explanation of the charge-sheeted workman or when

no reply is received within the specified time limit, the disciplinary authority

should issue an order appointing an enquiry officer or an enquiry committee to

hold the enquiry of the charge-sheet. The enquiry officer can be an official of the

company, or even an outsider, but care should be taken to appoint only such a

person as enquiry officer who is neither a witness nor is personally interested in

any way in the matter for which the charge-sheet has been issued. It should also

contain the name of the management representative.Thereafter, the enquiry officer should issue a notice of enquiry. This notice of

enquiry should clearly mention the date, time and place of enquiry. It should ask

the workman to present himself with his witnesses/documentary evidence, if

any, for the enquiry. It should also be mentioned in the notice of enquiry that if

the workman fails to attend the enquiry on the appointed date and time, the

same will he held ex-parte. A reasonable period of time should be given to the

workman for preparing his defence before the enquiry is held.(d) Holding o f a ful l - f ledge enquiry:This must be in conformity with the principle of

natural justice, that is, the employee concerned must be given an opportunity, of

being heard. When the process of enquiry is over and the findings of the sameare recorded, the Enquiry Officer should suggest the nature of disciplinary action

to be taken.

(e) Making a f inal order of pun ishment:Disciplinary action is to be taken when themisconduct of the employee is proved. While deciding the nature of disciplinary

action, the employee's previous record, precedents, effects of disciplinary action

on other employees, etc., have to be considered. When the employee feels that

the enquiry conducted was not proper and the action taken is unjustified, he

must be given a chance to make an appeal.(f) Follow u p:After taking the disciplinary action, a proper follow up action has to be

taken and the consequences of the implementation of disciplinary action should

be noted and taken care of.
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SuspensionIn a case where the charges levelled against a workman are of serious nature and it is

considered by the disciplinary authority that his physical presence might endanger the

safety of other workmen, or if it is apprehended that he might intimidate others or tamper

with the evidence, he may be suspended. During the period of suspension pending enquiry,

the workman will get subsistence allowance as per rules.

Suspension means prohibiting an employee from attending work, preventing him from

discharging the duties assigned to him and withholding the wages payable to him.

Suspension does not imply termination of services of an employee: it only means denial of

work to him. When the act of misconduct of an employee is considered serious, he is

suspended (called as procedural suspension) and an enquiry is ordered to find out whether

he is really guilty or not. Sometimes the employee may be suspended, even before issuing a

charge-sheet so as to prevent him from tampering with the records of the organization. The

employer is obliged to pay a subsistence allowance (one half of basic wage + dearness and

compensatory allowances) to the delinquent employee for a period of 90 days. If the

enquiry goes beyond 90 days, the allowance is increased to three fourths of the employees'

normal emoluments. Minor offences like late coming, sleeping while at work, smoking in

prohibited places, etc., do not invite serious punishments like suspension unless the

employee repeats the offences habitually. Where standing orders are in force the rules for

suspending an employee are mentioned therein and are expected to be followed

scrupulously.


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Enquiry ProcedureThe Procedure of Enquiry: At the commencement of the enquiry, if the delinquent

employee is present, the enquiry officer should record the date; time and place of enquiry,

names of the persons present and obtain their signatures on the order-sheet. Thereafter, he

should proceed as follows:

Read out and explain the charges and the reply of the charge-sheet to the delinquentemployee and get his confirmation to that effect. In case the delinquent employee

has not accepted the charge in reply to the charge-sheet, he should be asked if he

pleads guilty of the charges. If the charges are admitted, that should be recorded

and signatures of all concerned, with date, should be taken. A full-fledged enquiry

need not be held if the misconduct is of a minor nature. In case the charge, if proved,

is serious enough to warrant discharge or dismissal, the proper course is to hold the

enquiry.

Explain to the delinquent employee concerned the procedure to be followed in theenquiry, viz., that the presenting officer will produce witnesses/documentary

evidence/exhibits in support of the charge and the delinquent employee will have

opportunity to cross examine. Thereafter the delinquent employee should be given

opportunity to produce his witnesses/ and the management representative will have

a right to cross-examine them.

The delinquent employee will have further opportunity to make statement, if any, inhis defence. At any stage of the enquiry, the enquiry officer can seek clarification

from any witness or the delinquent employee by puffing questions to him. Neither

the presenting officer nor the delinquent employee can put leading questions to

their respective witnesses.

Witnesses in support of the charge are to be examined one by one in the presence ofthe delinquent employee.

The charge-sheeted workman is to be given an opportunity to cross-examinemanagements witnesses. In case he declines to cross-examine any witness, anendorsement to that effect should be recorded by the enquiry officer.

The delinquent employee should be asked to produce his own witnesses one by oneand the presenting officer will be allowed to cross-examine them. The delinquent

employee should be asked to give his statement after his witnesses are examined

and cross-examined. He may also produce documentary evidence, if any. In case the

delinquent employee declines to produce any witness/documentary evidence or

declines to give any statement, the enquiry officer should make a record to that

effect in the order-sheet and obtain signatures of all concerned. If the enquiry

remains incomplete in the first sitting and some more witnesses are required to beexamined, it may be continued or any other day mutually agreed by both sides. In


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such a case, the enquiry officer should make a suitable endorsement in the order-

sheet and obtain signatures of all concerned.

On each Page of the enquiry proceedings, the signature with date of the charge-sheeted workman, his representative, if any, the concerned witness and the

management representative should be taken. The concerned witness should sign oneach page of his statement only. The enquiry officer will sign on each page of the

proceedings after endorsing that the statement has been recorded by him and

explained to the parties in their language before they were asked to sign. If the

delinquent employee refuses to put his signature even after he had been asked to do

so, the enquiry officer should make an endorsement to that effect and get it attested

by others present.

Ex-parte Enquiry:If, on the day fixed for the enquiry, the delinquent employee does not turn up, an ex-parte

enquiry may be held by following the usual procedure. In such an enquiry, the presenting

officer has to lead the evidence against the charge-sheeted workman. The enquiry officer,

by putting questions to the witnesses, get facers to come to reasonable conclusion about

the validity or otherwise of the charges. As stated earlier, it is advisable to fix another date

of enquiry, instead of holding an ex-parte enquiry on the first sitting itself.

The Enquiry Report:After the enquiry is over the enquiry officer makes an appreciation of the evidence on

record and comes to his conclusion. If there is no corroborative evidence on a particular

point, the enquiry officer has to give his own reasons for accepting or rejecting the evidence

of such a witness. The enquiry report is a document which should clearly indicate whether

the charges levelled against the delinquent employee are proved or not. The conclusion of

the enquiry officer should be logical and based only on evidence brought out during the

enquiry. The enquiry officer may record clearly and precisely his conclusions with reasons

for the same. There is no place for any conjecture or surmises in the enquiry report. It

should be such that as per the evidence on record, any impartial man, not connected withthe case, should be able to come to the same conclusion as that of the enquiry officer.


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Principles of natural justiceBefore taking disciplinary action against a worker, management must hold a domestic

enquiry, following the principles of natural justice. The principle of natural justice states that

no man should be held guilty without getting an opportunity to explain his point of view. It

states that the worker be given a fair chance:

To present evidence of his own choice; To cross examine the management's evidence; To explain his point of view without any pressure or fear.

The enquiry must be conducted by an impartial person who is fully conversant with the

intricacies and procedures of domestic enquiries. Then a notice of enquiry has to be issuedto the worker, giving the time, date and place of enquiry and the name of the person

holding the enquiry. The worker is supposed to come to the place of enquiry with

supportive evidence and witness of his choice at the appointed time and date. The charges

made by the employer against the employee are explained to the worker. If the worker

agrees with the charges made against him, the enquiry is dropped. If he pleads innocent,

the proceedings continue in the presence of the accused. During the course of enquiry,

examination and cross-examination should be free and proper and all documents are open

to be seen by the parties. If the worker does not turn up at the appointed date and time, the

proceedings are held ex-parte. The findings of the enquiry are then conveyed to

management in writing. Before taking any punitive action, management should keep in viewthe gravity of misconduct. The punishment awarded should not be out of proportion to the

misconduct of the employee. The order of punishment has to be handed over to the worker

immediately. If the punishment does not seem to be fair, the worker can go to the labour

court or industrial tribunal.


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PunishmentsDepending on the gravity of misconduct, management may initiate the following punitive

actions against the employee who is found guilty:

Dismissal; Discharge; Discharge simpliciter; Suspension; Demotion to a lower grade; With-holding of increments; Fine; and Warning censure.

Of these, suspension, discharge or dismissal may be classified as major punishments, while

awarding a fine, warning or censure are regarded as minor punishments. In establishments

where the Industrial Employment (Standing order) Act is applicable, the employer can

award only those punishments, which are mentioned in the Standing Orders. The object of

punishing an employee in a minor way is to express the concern of the employer for

maintaining discipline in the establishment. Oral warnings, written censure, fines, etc., all

aim at preventing the employee from going off the track. The fine may hit the take-home-

pay of the employee, warnings may be entered in his personal record, loss of increment has

an element of shame attached to it and demotion may be extremely humiliating for the

delinquent employee. Discharge simpliciter means termination of an employee services for

loss of confidence and trust and does not carry the stigma of misconduct. Major punishment

such as suspension, discharge and dismissal need further elaboration and are hence

discussed separately here.


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Termination

Definition of Termination of Employment:Termination of employment is the end of an employee's duration with an employer.

Depending on the case, the decision may be made by the employee, the employer, or

mutually agreed upon by both.

Types of Termination:There are three types of termination. They are as follows:

1. Voluntary termination:Voluntary termination is a decision made by the employee to leave the job. Such a

decision is commonly known as resignation, quitting, leaving or giving notice. Some

common reasons for voluntary termination include:

Personal dissatisfaction with the job, employer, hours, or working conditions, orin more severe cases, burnout.

Factors in employees personal life not related to the jobs that make holding orperforming the job impossible or more difficult. These may include familyobligations, education, health, or moving to a new location.

Hire at a new job. Reasons for wanting a different job may be better workingconditions, better hours, a shorter distance to work, better pay, graduation,

career progression or preparation for entry into a new career, or a career

change.

Feared or anticipated involuntary termination. The employee may wish to takematters into his/her own hands in order to leave more honourably. This is also

known as mutual consent in some parts.

Retirement. This may be as a result of the employees age (which may vary,depending on job type and benefits available following retirement) or else an

injury, disability, or other medical condition forcing early retirement.

2. Involuntary termination:Involuntary termination is the employee's departure at the hands of the employer.

There are two basic types of involuntary termination, known often as being "fired" and "laid

off." To be fired, as opposed to being laid off, is generally thought of to be the employee'sfault, and therefore is considered in most cases to be dishonourable and a sign of failure.
http://en.wikipedia.org/wiki/Resignationhttp://en.wikipedia.org/wiki/Resignationhttp://en.wikipedia.org/wiki/Resignationhttp://en.wikipedia.org/wiki/Working_conditionshttp://en.wikipedia.org/wiki/Burnout_(psychology)http://en.wikipedia.org/wiki/Graduationhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Graduationhttp://en.wikipedia.org/wiki/Burnout_(psychology)http://en.wikipedia.org/wiki/Working_conditionshttp://en.wikipedia.org/wiki/Resignation


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Often, it may hinder the new job-seekers chances of finding new employment, particularly if

he/she has been fired from earlier jobs. Job-seekers sometimes do not mention jobs which

they were fired from on their rsums; accordingly, unexplained gaps in employment and

refusal to contact previous employers are often regarded as red flags.

3. DismissalDismissal is the employer's choice to let the employee leave, generally for a reason which is

the fault of the employee. The most common colloquial term for dismissal in America is

being terminated whereas in Britain the term 'getting the sack' is used.

4. LayoffA less severe form of involuntary termination is often referred to as a layoff (alsoredundancy or being made redundant in British English). A layoff is usually not strictly

related to personal performance, but instead due to economic cycles or the company's need

to restructure itself, the firm itself is going out of business, or due to a change in the

function of the employer (for example, a certain type of product or service is no longer

offered by the company, and therefore jobs related to that product or service are no longer

needed). One type of layoff is the aggressive layoff. In such a situation, the employee is laid

off for a just cause, but not replaced as the job is eliminated.

5. Termination by mutual agreement:Some terminations occur as a result of mutual agreement between the employer and

employee. When this happens, it is sometimes debatable if the termination was truly

mutual. In many of these cases, it was originally the employer's wish for the employee to

depart, but the employer offered the mutual termination agreement in order to soften the

firing (as in a forced resignation). But there are also times when a termination date is agreed

upon before the employment starts (as in an employment contract). Some types of

termination by mutual agreement include:

The end of an employment contract for a specified period of time (such as aninternship)

Mandatory retirement. Some occupations, such as commercial airline pilots, facemandatory retirement at a certain age and

Forced resignation etc.


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Removal and dismissalsThe end result of both the terms discharge and dismissal is same, that is, the employee's

services stand terminated. In practical usage, both terms are therefore used

interchangeably. Some minor differences, however, are worth mentioning here. While

dismissal is a sort of punishment against alleged misconduct, discharge is not always a

punishment. When the employer examines all background factors leading to the

termination of services of an employee, he may simply discharge the employee instead of

dismissing him. Dismissal has a negative connotation and carries a punitive label alongside.

A person who is dismissed from service may find it difficult to find alternative employment,

when compared to a person who is discharged from service. In case of discharge, the errant

employee may be served a reasonable, advance notice. This is not so in the case of dismissalwhere the services are terminated immediately. In case of dismissal, the employer can

withhold the dues payable to the employee whereas in case of discharge, usually all these

are settled simultaneously. Finally, before dismissing an employee, the employer has to hold

disciplinary proceedings (domestic enquiry) in a proper way. In case of discharge, he may or

may not go for it.

Dismissal is the termination of the services of an employee as a punitive measure for some

misconduct. Discharge also means termination of the services of an employee, but not

necessarily as a punishment. A discharge does not arise from a single, irrational act. There

could be many reasons for it such as:

Inebriation and alcoholism Wilful violation of rules Carelessness Insubordination Physical disability Dishonesty Violent and aggressive acts Inefficiency

Discharge/dismissal is a drastic measure seriously impairing the earnings potential and the

image of an employee. It should be used sparingly, in exceptional cases where the employee

has demonstrated continued inefficiency, gross insubordination or continued violating rules

even after several warnings. Before discharging the employee, advance notice of the

impending danger must be given and the reasons of discharge must be stated clearly. The

employee should be given the opportunity to defend himself. If the grounds under which an

employee has been discharged are not strong enough, there should be a provision for


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reviewing the case. In any case, the punishment should not be out of proportion to the

offence.


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Conflicts Industrial disputes

LayoffA layoff is a temporary removal of an employee from the payroll of an organisation due to

reasons beyond the control of an employer. Global competition, reductions in product

demand, changing technologies that reduce the need for workers, and mergers and

acquisitions are the primary factors behind most layoffs. The services of the employees are

not utilised during the layoff periods. If the layoff is for a temporary period (sometimes it

could the indefinite) the employee is likely to be called back to join the ranks once again.

The employer-employee relationship, therefore, does not come to an end but is merelysuspended during the period of layoff. The purpose of layoff is to trim the extra fat and

make the organisation lean and competitive.

Under the Industrial Disputes Act, 1947, a lay-off implies the following things (Section 2 KKK)

1. The employer is temporarily unable to employ some workers on a full-time basis.2. The reasons for the refusal of employment could be traceable to shortage of inputs,

power, accumulation of stocks, breakdown of machinery etc.

3. The employer-employee relationship stands suspended during the period of lay off.4. The employee gets (excluding holidays) only fifty per cent of his normally eligible

total basic wages plus dearness allowance during the period of lay off. (Section 25 C)

5. To claim this compensation, the laid off workman(a) Should not be a casual worker

(b) His name must be there on the muster rolls

(c) He must have one year's continuous service

(d) He must report for work at the appointed time at least once a day.

These conditions, however, do not apply when

1. The worker is able to find alternative employment in a nearby location (within 5miles),

2. The lay off is due to strike or slowing down of production by workers in another partof the establishment

3. The industrial establishment is seasonal in character, and4. Where less than 20 workers are normally employed therein.

Layoffs have a powerful impact on the organisation. They bring down the morale of the

organisation's remaining employees, who are forced to live in an environment of


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uncertainty and insecurity. Sometimes, even employees whose services may be essential for

the organisation may quit fearing loss of membership thus causing further damage to the

organisation. The company's standing as a good place to work may suffer. It may be difficult

for the company to have the services of talented people afterwards. Layoffs, therefore, have

to be carried out in a cautious way keeping the financial, psychological and socialconsequences in mind.


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Termination simpliciter

Judicial stand in India on termination of employmentAs is clear from the foregoing, under the Indian legal regime, the basis on which the

employer-employee relationship is governed is purely contractual and based upon judicial

precedents. The legal principles governing the relationship have evolved from various

judicial decisions and the courts have categorized termination into two categories,

(a) Termination simpliciter(b) Termination for misconduct.

While the courts have not defined misconduct, the Supreme Court has held that

termination of an employee whether simpliciter or punitive has to be decided on the facts

and circumstances of each case. In one such case4, the Supreme Court has examined

instances where termination is simpliciter or on account of misconduct i.e. punitive. One of

the judicially evolved tests to determine whether an order of termination is punitive is to

evaluate whether prior to the termination there was:

A full-scale formal enquiry Into allegations involving moral turpitude or misconduct which, Culminated in a finding of guilt.

If all three factors are present, the termination is held to be punitive irrespective of the

form of the termination order. Conversely, if any one of the three factors is missing, the

termination has been upheld. In India, termination of employment on grounds of

misconduct is treated as a punitive action as a certain level of stigma is attached to such a

termination. Where an employee is terminated for misconduct, it casts aspersions on the

capability of the individual to contribute to the employer and also impacts on future

employment with other employers. Courts in India have a tendency of leaning in favour of

employees, and where it feels the employer has removed an employee as a punitive

measure, it has set-aside the termination as unreasonable. Frequent communications from

the employer to the employee informing him of his shortcomings, lack of performance and

unsuitability have worked in the employers favour in justifying termination and avoiding

long drawn litigation by the employee. Additionally, courts in India have held that the

reasons for termination of employment must have objective considerations, i.e. must be

based on facts which can be proved by documentation or evidence.

In Avineshwar Sawhneys case, the employer had terminated the employment of a

person on account of inefficiency and loss of confidence by the management. The lowercourt upheld the termination order after recording the testimony of the management


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witness and held that the subjective satisfaction of the employer was sufficient to cause

termination. However, on appeal, the lower courts decision was overruled by the appellate

court on the basis that the subjective satisfaction of the employer for termination has to be

based on objective considerations. The burden lies on the employer to show and place on

record the necessary documentary evidence.


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RetrenchmentRetrenchment is the permanent termination of an employee's services due to economic

reasons (such as surplus staff, poor demand for products, general economic slowdown, etc.)

It should be noted here that termination of services on disciplinary grounds, illness,

retirement, and winding up of a business does not constitute retrenchment. In respect of

organisations employing 100 or more persons, the Industrial Disputes Act, 1947, makes it

obligatory for the employer to give advance notice or pay equivalent wages before the

actual lay off date. To claim 50 per cent of basic wages plus dearness allowances, the

workman (who is not a casual worker, whose name appears on pay roll, who has completed

12 months of continuous service) must present himself on each working day at the

appointed time inside the factory/office premises during the lay off period. If necessary, hemight be asked to report a second time during the same day. While laying off workman, the

employer is expected to follow the first-in-last-out principle. He should give preference to

such workmen if he advertises for reemployment against future openings. The employer has

to give three months notice before retrenching the worker and get prior approval from the

government as well.

1.Outplacement:

Employees who are retrenched / laid off may have difficulty in finding an alternative job if

the market conditions are adverse. There might be a demand for certain category of

employees possessing multiple skills, but the retrenched employees may not have those

marketable skills. To fill this vacuum, some organisations offer training in such skills and

assist the retrenched employees in finding a suitable job elsewhere. Outplacement

assistance includes efforts made by employer to help a recently separated worker find a

job (Davis, p.269). Apart from training, some multinational firms offer assistance in the

form of paid leave, travel charges for attending interviews, search firm charges, waiving

bond requirements to the retrenched employees. Bank of America has given a fat sum as

liberal retrenchment compensation running into several lakh of rupees to all eligibleretrenched officers in 1998. It has also held counselling sessions for those officers on issues

such as how to repay their car/house loans, where for invest their money, etc. Search firms

were also hired to find suitable employment. When the downsizing effort stabilised, Bank of

America had even extended the former employees a warm welcome back home! Such

outplacement assistance, in whatever form it is available, assures the remaining employees

of the managements commitment towards their welfare if a further downsizing ever

happens to take place in future.


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2.Suspension:Suspension means prohibiting an employee from attending work and performing normal

duties assigned to him. It is a sort of punishment for a specified period and is generally

resorted to only after a proper inquiry has been conducted. During suspension, the

employee receives a subsistence allowance. If the charges against the suspended employee

are serious and are proved, suspension may lead to termination also.


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VRS

Voluntary retirement:In case of voluntary retirement, the normal retirement benefits are calculated and paid

to all such employees who put in a minimum qualifying service. Sometimes, the employer

may encourage the employee to retire voluntarily with a view to reduce surplus staff and

cut down labour costs. Attractive compensation benefits are generally in-built in all such

plans (referred to as golden handshake scheme). To reduce post-retirement anxieties,

companies these days organise counselling sessions, and offer investment related services

(e.g., Citibank, Bank of America). Some companies extend medical and insurance benefits to

the retirees also, e.g., Indian Oil Corporation.

Voluntary termination:Voluntary termination is a decision made by the employee to leave the job. Such a

decision is commonly known as resignation, quitting, leaving or giving notice. Some

common reasons for voluntary termination include:

Personal dissatisfaction with the job, employer, hours, or working conditions, orin more severe cases, burnout.

Factors in employees personal life not related to the jobs that make holding orperforming the job impossible or more difficult. These may include family

obligations, education, health, or moving to a new location.

Hire at a new job. Reasons for wanting a different job may be better workingconditions, better hours, a shorter distance to work, better pay, graduation,

career progression or preparation for entry into a new career, or a career

change.

Feared or anticipated involuntary termination. The employee may wish to takematters into his/her own hands in order to leave more honourably. This is also

known as mutual consent in some parts.

Retirement. This may be as a result of the employees age (which may vary,depending on job type and benefits available following retirement) or else an

injury, disability, or other medical condition forcing early retirement.
http://en.wikipedia.org/wiki/Resignationhttp://en.wikipedia.org/wiki/Resignationhttp://en.wikipedia.org/wiki/Resignationhttp://en.wikipedia.org/wiki/Working_conditionshttp://en.wikipedia.org/wiki/Burnout_(psychology)http://en.wikipedia.org/wiki/Graduationhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Graduationhttp://en.wikipedia.org/wiki/Burnout_(psychology)http://en.wikipedia.org/wiki/Working_conditionshttp://en.wikipedia.org/wiki/Resignation

grievances and disciplines

Documents