Code of Conduct

Policy & Procedure for Disciplinary Action

Purpose: To ensure employees follow work place discipline and to take necessary actions in
case of indiscipline

Person Responsible for monitoring and implementing the process: HR Manager

Reporting Authority: CEO

Process flow:

1.0 Objective:

1.1 To guide Employees to follow work place discipline.

1.2 To take necessary actions in case of indiscipline.

2.0 Scope: This policy is applicable to HR Department of Company Name

3.0 Definitions / Keywords / Abbreviations: None

4.0 Responsibility:

4.1 All Employees are responsible for adhering to the code of conduct
defined by the Organization.

4.2 Manager -HR under supervision of Managing Director shall be responsible

for investigating and taking necessary action against any misconduct.

5.0 Accountability:

5.1 Manager-HR & HODs will be accountable for ensuring that every
employee i abide to the code of conduct.

6.0 Internal Customers: Designated End Users

7.0 Date of commencement:

8.0 Policy & Procedure:

8.1 Disciplinary action:

With the emergence of the modern concept of social justice, the inherent
right to punish the delinquent employee is subject to certain restrictions. Discipline
in any Industrial organization denotes the code of conduct or behavior which is
intended to promote efficient working of the organization. While dealing with
disciplinary measures, the organization is required to follow certain principles and
procedures before any punishment is meted out to an Employee. Apart from the
INDUSTRIAL
EMPLOYMENT (STANDING ORDERS) ACT, 1946, there is no specific provision
in any statute relating to industrial law prescribing in detail the correct procedure to
be followed before meting out punishment to the delinquent employee. The
standing orders are in the nature of rules and regulations which every employees is
expected to adhere to, while in the services of the organization.

8.2 Misconduct in general terms

“Misconduct” may be termed as the Act of an employee which is,

 Prejudicial or likely to be prejudicial to the interest of the organization and /

or that of the other employees.

 Inconsistent or incompatible with normal terms of discharge of one’s duty.

 Such that it makes it unsafe and undesirable for the organization to retain
him/her in service.

 Such that the organization cannot rely on his/her loyalty and integrity.

 Such that it amount to insubordination to a degree so as to be incompatible

in a relationship between an employer and an employee.

8.3 Industrial Employment (Standing Orders) Act 1946

The Act was passed by the Parliament in 1946. The object of this enactment
is to define in precise terms the conditions of employment for employees. The
Standing Order interalia defines acts and omissions, which constitute misconduct, as
also indicate generally a procedure for proceeding against an associate involved in
misconduct. The Acts & Omissions, which constitute misconducts, are given in the
State Rules. These may vary from state to state. No act of misconduct, which is
committed on less than three occasions, is treated as habitual. A list of general
misconducts is given in Annexure 1. These are not exhaustive in nature and any
other related cases/lapses could also be treated as misconducts.

8.4 Natural Justice

The principles known as “Principles of Natural Justice” to be followed in

Disciplinary Action are as under:

 An oral investigation may be conducted before a formal enquiry. The oral

investigation may not record statements from persons/witnesses, however
may record its findings and opinion. The basic purpose of an oral
investigation will be to establish whether a prima facie case exists. Depending
on the seriousness of case it should be conducted by impartial person under
the instructions of MD as far as possible.

 An opportunity must be given to the delinquent employee to disprove the

charges and to establish his/her innocence. This can be done only when
he/she is told in unambiguous terms what is the charge leveled against
him/her.

 An opportunity to conduct his/her defense must be available to him/her by

cross examining witness in support of the charges leveled against him/her.

 The enquiry against the delinquent associate should be fair and should be
conducted by an impartial person.

 Punishment awarded should not be out of proportion to the misconduct

committed.

8.5 Management of discipline

As mentioned in the foregoing paragraphs, the Model Standing Orders

prescribed under the State Rules are applicable to the establishment. This Model
Standing Orders stipulate certain cases of Omission and Commission by the
Employees as they tend to harm the interest of the organization and calls for
necessary disciplinary action against erring individuals. As mentioned above, the
Principles of Natural Justice should always be kept in mind while taking disciplinary
 action. The following stages while initiating disciplinary action should therefore be
observed against any delinquent Employee.

8.6 Warning

Initiate action with warning/caution letters specifying the instances, so that

the concerned employee takes serious note of the same. Such letters could be issued
by the Manager-HR.

Date:
WARNING
Mr. / Mrs.
Designation
Emp. No.
Department
It has been reported against you as under:
(Specify the incident) _____________________________________________________
_______________________________________________________________________
_______________________________________________________________________
The above act on your part has adversely affected
___________________________________________________________________________
___________________________________________________________________________
(Specify the department work or any other specific inconvenience caused) and constitute
misconduct /s under the Model Standing Orders applicable to the establishment. You are
hereby cautioned and warned to ________________________ (improve attendance /
conduct). Any recurrence of the aforesaid omission / s on your part in future will be dealt
with suitable disciplinary action, as deemed fit.

Authorized Signatory
For,

8.7 Show cause Notice

If the misconduct/s is/are repeated and/or there is no improvement in the

conduct, and/or there is a fresh instance of other misconducts, a Show Cause Notice
 may have to be issued to the concerned employee. The show cause notice could be
issued by the Manager-HR.

Date:
SHOW CAUSE NOTICE
Mr. / Mrs.
Designation
Emp. No.
Department
It has been reported against you as under:
On _______________________________ at ____________________ you _______
_______________________________ (narrate the incident specifically).
The above act on your part amounts to misconduct as per the Model Standing Orders
applicable to you. Accordingly, you are called upon to submit your written explanation and
show-cause why disciplinary action should not be taken against you. Your explanation must
reach the undersigned by ___________. If you fail to submit your written explanation as
required, the matter will be disposed of without any further reference to you.

AUTHORISED SIGNATORY
For,

8.8 Charge sheet

If the explanation of the concerned employee is not satisfactory, and/or the

misconducts are of serious nature, the Management could issue a charge sheet. It
could be combined with a “Notice of Enquiry” depending upon the gravity of
misconduct and the urgency to deal with the same. A “Charge sheet” cum” Notice of
Enquiry” could then be issued by the Manager- HR based on the facts submitted by
the Department Head. The erring employee may once again be asked to submit
written explanation before the commencement of enquiry.

Date:
CHARGE SHEET CUM NOTICE OF ENQUIRY
Mr. / Mrs.
Designation
Emp. No.
Department
We are in receipt of your explanation dated __________ in response to the Company’s
show cause notice dated ______. We have gone through the contents of you explanation
and find the same to be unsatisfactory and not tenable.
Keeping in view the seriousness of the misconduct and your involvement in the same, the
following charges are framed against you.
A.
B.
C.
(While making the charges make it specific indicating the time, place and the exact nature of
the incident)
The above charges if proved will amount to the following Acts, Omission and Commission
under the Model Standing Orders as under:
A.
B.
C.
D.
In order to give you a fair chance to defend yourself, it has been decided to conduct a
domestic enquiry into the charges mentioned above. The enquiry will be held on ____
at ______________ in the office of Mr._____________, Independent Enquiry Officer.
You are required to be present for the same along with your Representative if any. Kindly
note that if you do not present yourself for the enquiry at the above mentioned date and
time, the same will be held ex-parte.
AUTHORISED SIGNATORY

8.9 Suspension

Subsequent to the Management’s consideration of explanations, the

concerned may proceed with a domestic enquiry to investigate the charges and take
appropriate action such as Suspension, Dismissal or Discharge if required. Sometimes
the employees may be suspended pending enquiry, if the alleged misconducts are of
grave nature and his/her presence in the establishment is not in the interest of the
 organization or could have adverse effects on other employees. This will be again
issued by the Human Resource Department only. During the period of suspension
pending enquiry the employee is allowed to subsistence allowance as per the law.
The allowance includes the Gross salary, which the associate is entitled to.
The individual is paid 50% for the first 90 days of suspension and thereafter if the
enquiry gets prolonged and if the employee continues to be on suspension for a
period exceeding 90 days, the subsistence allowance to be paid would be 75% if the
management is responsible for delay or else 25% if the individual is responsible for
the delay. If the enquiry is further not completed within 180 days due to the fault of
the management, then the management will pay 100% of the salary till the
completion of the enquiry. But in case, the delay is directly attributable to the
employee then he would be paid @ 50 %.

The aforesaid plan of action is suggested for permanent employees of the

organization. In case of employee on probation it would be advisable to
release them immediately through a letter from the Human Resource
Department on account of unsatisfactory performance and progress for
which necessary recommendation will be forwarded by the concerned
department Head / Manager.

UNDER NO CIRCUMSTANCES SHOULD A LETTER OF TERMINATION AND RELEASE OF

AN EMPLOYEE BE ISSUED BY HR MANAGER ONLY

Annexure 1
LIST OF MISCONDUCTS

a. Willful insubordination or disobedience, whether or not in combination with

another, of any lawful and reasonable order of a superior;

b. Going on an illegal strike or abetting, inciting, instigating or acting in furtherance

thereof;

c. Willful slowing down in performance of work, or abetment or instigating thereof;

d. Theft, fraud, or dishonesty in connection with the employer’s business or

property; or the theft of property of another workmen within the premises of the
establishment;

e. Taking or giving bribes or any illegal gratification;

f. Habitual absence without leave or absence without leave for more than ten
consecutive days or overstaying the sanctioned leave without sufficient grounds or
proper or satisfactory explanation;

g. Late attendance on not less than four occasions within a month;

h. Habitual breach of any standing order or any law applicable to the establishment
or any rules made thereof;

i. Collection without the permission of the management of any money within the
premises of the establishment except as sanctioned by any law for the time being in
force;

j. Engaging in trade within the premises of the establishment;

k. Drunkenness, riotous, disorderly or indecent behavior on the premises of the

establishment;

l. Commission of any act subversive of discipline or good behavior on the premises of

the establishment;

m. Habitual neglect of work, or gross or habitual negligence;

n. Habitual breach of any rules or instructions of the maintenance and running of any
department, or the maintenance of the cleanliness of any portion of the
establishment;

o. Habitual commission of any act or omission for which a fine may be imposed
under the payment of wages act 1936;

p. Canvassing for union membership or the collection of union dues within the
premises of the establishment, except in accordance with any law or with the
permission of the management;

q. Willful damage to work in process or to any property of the establishment;

r. Holding meeting inside the premises of the establishment without the previous
permission of the management or except in accordance with the provision of any
law for the time being in force;
s. Disclosing to any unauthorized person any information in regard to the processes
of the establishment which may come into the possession of the associate in the
course of his work;

t. Gambling within the premises of the establishment;

u. Smoking within the premises of the establishment where it is prohibited by the

Management;

v. Sleeping while on duty;

w. Leaving work without permission or sufficient reason;

x. Failure or refusal to wear or use any protective equipment/dress given by the

organization;

y. Failure to carry the identity card on person while on duty;

z. Conviction in any Court of Law for an offence involving moral turpitude;

aa. Giving false information regarding one’s age, father’s name, qualification
or Previous service at the time of employment;

bb. Threatening, abusing or assaulting any superior or co-worker;

cc. Money lending in the premises;

dd. Preaching of or inciting to violence;