Employee Disciplinary Policy - Template, Sample Form Pro · IN-law

EMPLOYEE DISCIPLINARY POLICY

This Employee Disciplinary Policy ("Policy") is effective from ________ ("Effective Date") and applies to ________, a company incorporated under the Companies Act, 2013 having its registered office at ________ and bearing Corporate Identity Number (CIN) ________, together with its subsidiaries and joint ventures over which it exercises management control ("We", "Us", "Our", "Company").

Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat duis aute irure dolor in reprehenderit voluptate velit esse cillum dolore eu fugiat nulla pariatur lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud.

The purpose of this Policy is to set and maintain standards of conduct within the Company and to ensure that all employees are treated fairly, consistently and in accordance with the principles of natural justice.

All employees and other stakeholders, including remote workers of the Company, are expected to be familiar with and follow the procedures set out under this Policy.

For employees who are on a probationary period, the Company may, subject to the terms of the relevant appointment letter and applicable law, dispense with the progressive steps of disciplinary action envisaged under this Policy and discharge such employees in accordance with their terms of probation.

The procedures in this Policy provide for progressive discipline to address issues involving unsatisfactory job performance and misconduct, to give employees notice of such deficiencies and to allow them a reasonable opportunity to rectify and improve.

The actions taken or steps followed will depend upon the circumstances of each case, and the inclusion or exclusion of any step will depend entirely on the seriousness and nature of the misconduct, subject always to the principles of natural justice.

§ 1. SCOPE

1.1. This Policy applies to all employees of the Company, including trainees, apprentices, interns, remote workers, part-time and full-time employees, whether engaged directly or through a contractor.

1.2. Nothing in this Policy shall override any mandatory statutory protection available to a "workman" under the Industrial Disputes Act, 1947 or the Industrial Relations Code, 2020, or any applicable certified Standing Orders, and to the extent of any inconsistency such statutory provisions shall prevail.

§ 2. DEFINITIONS

2.1. "Committee" means the Disciplinary Action Committee or Ad-hoc Disciplinary Action Committee appointed from time to time to inquire into and decide internal disciplinary matters of the Company.

Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat duis aute irure dolor in reprehenderit voluptate velit esse cillum dolore eu fugiat nulla pariatur lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation.

2.3. "Management" means a person or body responsible for managing, supervising and controlling the Company's work and Workplace.

2.4. "Misconduct" means any act or omission by an Employee in breach of this Policy, the Company's code of conduct, the terms of employment, any applicable Standing Orders, or any applicable law.

2.5. "Workplace" means establishments, enterprises, institutions, offices, branches, premises, locations or units established, owned or controlled by the Company, or places visited by employees out of or during the course of employment, including any accommodation or transportation provided by the employer for undertaking such journey.

§ 3. GENERAL GUIDELINES

3.1. Wherever possible, informal action such as a direct conversation or counselling with the employee will be considered before recourse to any formal procedure. A verbal warning may take the form of a simple oral reprimand or a full discussion, as necessary.

3.2. All employees will be treated in accordance with the Company's equality, anti-discrimination and equal opportunity principles and policies.

3.3. An employee undergoing investigation or formal action shall be informed in writing of the nature of the complaint or charge. Where available, the employee shall be furnished with copies of the complaint, charge-sheet and witness statements before the hearing date.

3.4. Every employee against whom any offence or violation is alleged shall be given a free, fair and reasonable opportunity of being heard, in accordance with the principles of natural justice.

3.5. Formal proceedings shall be concluded as expeditiously as reasonably possible, unless it is necessary to defer them on the recommendation of the Committee or Management.

3.6. Employees shall cooperate with the Committee and participate in the disciplinary proceedings as and when required for the resolution of the infractions alleged against them.

3.7. No complainant shall be penalised in any manner and no retaliatory action shall be taken against any person for reporting or inquiring in good faith about potential infractions. However, the Company reserves the right to take appropriate action in the case of frivolous, malicious or knowingly false accusations or complaints.

3.8. In determining the quantum of action or punishment, the Company may consider factors including the gravity and nature of the offence, the frequency or repetition of the offence, the past record and conduct of the employee, and any mitigating circumstances.

3.9. This Policy is not exhaustive, and the Committee may inquire into any matter that is otherwise considered a violation of the Company's policies or any applicable laws prevailing in the jurisdiction where the Company is situated.

3.10. All personal data of employees processed in the course of disciplinary proceedings shall be handled in accordance with the Digital Personal Data Protection Act, 2023 and shall be used solely for the purposes of such proceedings.

§ 4. GROSS MISCONDUCT

4.1. Acts of gross misconduct will be treated with utmost seriousness and appropriate action will be taken against the person responsible. Where an employee is found, after due inquiry, to have committed gross misconduct, such employee may be dismissed for misconduct in accordance with applicable law and any applicable certified Standing Orders.

4.2. In addition to disciplinary action initiated by the Company, the Company may also initiate further civil or criminal proceedings to the extent permitted by applicable laws in India.

4.3. The following are illustrative examples of gross misconduct, and this list is not exhaustive:

4.3.1. serious negligence causing loss, damage or injury to any person or to the Company;

4.3.2. failure to work in accordance with prescribed Company guidelines, policies, procedures and code of conduct;

4.3.3. physical violence, threats or intimidation;

4.3.4. deliberate and serious damage to property;

4.3.5. serious violation of health and safety rules;

4.3.6. unauthorised possession or removal of the Company's property or assets;

4.3.7. theft, fraud, corruption, bribery, dishonesty and falsification or manipulation of records;

4.3.8. false declaration of qualifications or professional registration, or concealment of material information during background checks and verification;

4.3.9. breach of security procedures;

4.3.10. serious breach of the anti-bribery and anti-corruption policy or the Prevention of Corruption Act, 1988;

4.3.11. the use or possession of illegal drugs or weapons at the Workplace;

4.3.12. sexual harassment within the meaning of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, which shall be dealt with by the Internal Committee constituted under that Act, and not by the Committee under this Policy;

4.3.13. misuse or unauthorised disclosure of the Company's confidential information or personal data, prejudicial to the interest of the Company;

4.3.14. unauthorised absence from work or duty without prior written permission from the Company;

4.3.15. reporting for or remaining on duty while seriously incapacitated due to consumption of alcohol or illegal drugs;

4.3.16. subjecting any employee, client or customer to intentional discriminatory treatment or harassment;

4.3.17. committing any other serious offence under applicable laws or any act materially against the best interests of the Company.

§ 5. DISCIPLINARY PROCEDURES

5.1. The Committee or Management may repeat any stage of the disciplinary proceedings as appropriate, depending upon the employee's response to the disciplinary action taken.

5.2. The Company may resort to legal intervention or recourse as and when required, at its discretion and in accordance with applicable law.

5.3. Where an employee is charged with or convicted of a criminal offence, this shall not by itself necessarily be a ground for disciplinary action or termination, unless such charge or conviction adversely affects the continued employment of such employee or the interests or reputation of the Company.

5.4. Before initiating any formal disciplinary action against an employee, the concerned authority, including the Committee, shall conduct a fair and thorough investigation into the allegations and complaints against such employee.

5.5. The following steps are provided as general guidelines, and the Company may, where required, add to or omit any step depending on the facts and circumstances of the case:

5.5.1. Verbal Warning

5.5.1.1. As a first step, a verbal warning to the employee shall be considered. Wherever possible, the concerned person shall first resort to informal action and communication to rectify the conduct of the employee.

5.5.1.2. At this stage, the employee will be informed of the unsatisfactory conduct and made aware of the standards expected, without resorting to any formal procedure.

5.5.1.3. Through verbal communication, the concerned manager or supervisor shall endeavour to explain the issue to the employee and obtain their response. Where appropriate, a summary of the communication may be recorded and sent to the employee by email.

5.5.1.4. At this stage, the parties will agree on the terms and timeline for rectifying the issue.

5.5.2. Written Warning

5.5.2.1. If the issue is not resolved through verbal communication, the employee will be issued a written warning.

5.5.2.2. Every written warning shall include the following:

5.5.2.2.1. a statement that it is a formal written warning and not a routine guideline or counselling letter;

5.5.2.2.2. the specific issues forming the basis of the warning;

5.5.2.2.3. the specific improvements required of the employee;

5.5.2.2.4. the time frame allowed for improvement or correction;

5.5.2.2.5. the consequences of failing to make the required improvements or corrections.

5.5.3. Final Warning Letter

5.5.3.1. A final warning letter will be issued where the employee is found to have committed gross misconduct or has failed to comply with a previous written warning.

5.5.3.2. The final warning letter shall include the details of the complaint, the improvement required and the timescale, as well as the consequences of continued misconduct, including termination of employment.

5.5.4. Suspension Pending Inquiry

5.5.4.1. Where required, the Committee or Company may suspend the concerned employee for such period as is necessary to enable an inquiry to be conducted without interference, or where the employee has committed a serious offence under applicable law and poses a threat to other employees or to the reputation of the Company, or for any other reason the Committee or Company finds necessary.

5.5.4.2. During the period of suspension pending inquiry, the employee shall be entitled to a subsistence allowance in accordance with applicable law, as follows:

5.5.4.2.1. ________% of basic wages and dearness allowance for the first ________ days of suspension; and

5.5.4.2.2. ________% of basic wages and dearness allowance for the subsequent period of suspension,

provided that the subsistence allowance payable shall in no event be less than that prescribed under the applicable Standing Orders or any applicable State or Central law, and the higher rate shall prevail.

5.5.5. Termination

5.5.5.1. An employee may be terminated where, after a fair inquiry, he or she is found to have committed an act of gross misconduct, or has failed to rectify the deficiency identified in the final warning letter.

5.5.5.2. Any termination shall be effected in compliance with the applicable provisions of the Industrial Disputes Act, 1947 / Industrial Relations Code, 2020, the applicable certified Standing Orders, the terms of employment and any applicable notice or compensation requirements.

5.5.5.3. The termination of an employee shall be finally decided by the following persons or departments of the Company: ________.

§ 6. DISCIPLINARY ACTION COMMITTEE

6.1. The Committee shall consist of the following departments and persons:

________

6.2. The Chairperson of the Committee shall be ________.

6.3. Where a complaint is received against a member of the Committee, such member shall recuse themselves and be excluded from the proceedings of the Committee in respect of that matter.

6.4. The quorum required for conducting a meeting of the Committee shall be any two members together with the Chairperson.

6.5. Matters constituting sexual harassment within the meaning of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 shall not be inquired into by this Committee, but shall be referred to the Internal Committee duly constituted under that Act.

§ 7. DISCIPLINARY HEARING

7.1. Where formal disciplinary action is contemplated, the employee shall be given written notice of the hearing specifying the date, time and venue, along with the details of the allegations and any supporting documents or witness statements available.

7.2. The notice of hearing shall be communicated to the employee with reasonable advance notice, being not less than ________ days, to enable the employee to prepare and present their case.

7.3. The employee shall be given a fair and reasonable opportunity to present their explanation, respond to the allegations, produce evidence and examine witnesses, if any, during the hearing.

7.4. The employee may, with the prior permission of the Committee, be accompanied by a co-worker or representative during the hearing.

7.5. If the employee fails to attend the hearing without reasonable cause, the Committee may proceed with the hearing in the absence of the employee and decide the matter on the basis of the available evidence and material on record.

7.6. After conducting the hearing and considering all the facts, evidence and submissions, the Committee shall record its findings and reasons, arrive at a decision, and communicate the outcome along with the disciplinary action, if any, to the employee in writing within a reasonable time.

§ 8. APPEAL

8.1. An employee who wishes to appeal against a disciplinary action shall write to the Chairperson, any Committee member or senior Management within 7 (seven) business days from the date of communication of the decision.

8.2. Such appeal shall set out the grounds of appeal, including any evidence or witnesses relied upon. Such documents or list of witnesses shall be submitted at least two business days prior to the appeal hearing.

8.3. An appeal may be considered on the following grounds:

8.3.1. that new evidence is available which was not presented during the original hearing;

8.3.2. that the original hearing was materially flawed or contrary to the principles of natural justice;

8.3.3. that the quantum of punishment imposed is not reasonable or proportionate.

8.4. After considering the appeal, the Committee or Management may:

8.4.1. uphold the disciplinary action; or

8.4.2. reduce the quantum of punishment; or

8.4.3. modify the type of punishment; or

8.4.4. set aside the disciplinary action entirely.

8.5. The decision on the appeal shall be communicated within 7 (seven) business days from the date of the appeal hearing. The decision of the Committee or Management in this regard shall be final, subject to any remedy available to the employee under applicable law.

§ 9. DOCUMENTATION AND DATA PROTECTION

9.1. The files and records in connection with disciplinary actions shall be preserved for ________ (________) years from the conclusion of the disciplinary action, or for such longer period as may be required under applicable law.

9.2. All personal data contained in such records shall be retained, processed and protected in accordance with the Digital Personal Data Protection Act, 2023, and shall be securely disposed of upon expiry of the retention period unless otherwise required by law.

§ 10. CHANGES TO THIS POLICY

The Company reserves the right to revise and amend this Policy from time to time to adapt to changing circumstances and laws. Employees and other stakeholders are required to refer to the updated version made available from time to time on the Company's website or internal records. No amendment shall have retrospective effect on proceedings already concluded.

§ 11. GOVERNING LAW AND JURISDICTION

11.1. This Policy shall be governed by and construed in accordance with the laws of India.

11.2. Subject to any applicable statutory forum or labour authority having jurisdiction, the courts and tribunals at ________ shall have exclusive jurisdiction over any matter arising out of or in connection with this Policy.

§ 12. FURTHER INFORMATION

For any queries or further information about this Policy, an employee or other concerned person may contact the following department or person: ________ (________).

§ 13. ACKNOWLEDGEMENT

By signing this Policy:

13.1. I acknowledge that I have read and understood the above policies and guidelines of the Company and understand my responsibilities.

13.2. I agree to report any actual or potential situation or incident that may be contrary to the above policies as soon as I become aware of it.

13.3. I agree to abide by the aforementioned policies and I understand that my failure to follow them may result in disciplinary action, up to and including termination of employment.

Employee Name: ________

Employee ID: ________

Designation: ________

Date: ________

Place: ________

_________________________

Signature of Employee

For and on behalf of the Company

Name: ________

Designation: ________

_________________________

Authorised Signatory