Dear Chitralekha,
1. There are a couple of personality traits which are vital for group dynamics and candidates must be screened during the recruitment process or the probation period, at the most. They are - Social Effectiveness (ability to stay together with the group and contribute positively); Cooperation (cooperative with the team members); Sense of Responsibility; Liveliness (ability to stay composed under duress/ remain effective during ambiguity; and Courage (Physical and moral courage).
2. Lack of any one or all of them should raise alarm bells. Any amount of competence cannot compensate for the lack of these qualities. The Senior Manager Finance fails on all counts.
3. Unfortunately, with all the background checks, various selection tools and due precautions, such undesirable elements do manage to get recruited. Reasons are many- hurry to recruit/seemingly good profile/subjectivity during interviews etc. However, probation period is meant to check such attitudenal aberrations--He should have gone!! And should not have been confirmed.
4. Compared to other industries, construction Industry suffers from the quality of manpower, all around the world. I was myself part of the $19 billion USD project abroad, with 50,000 workers from more than 52 countries. You had excellent professionals and you had the worst of rogues too. A typical HR atmosphere is missing and the HSSE does the bulk of the jobs. However, the rules are always stringent -- Either you follow the company rules or you are out. As rightly pointed out, he is not a workman. And as per his contract, his misconduct deserves him to be terminated. And no legal system approves of such a litigation by a manager.
5. In case you CMD wishes to close the case, it must be to hush up the issue and avoid any legal hassle. However, we may be setting a precedent for more such litigations. Hence, the decision of your COO and Head HR to fight out in the court of law, is not out of place.
6. Kindly remember that in office procedure, there is nothing called verbal counselling. We do it out of good faith. But all such meetings, counsellings, written advisories/warnings etc. must be recorded. His refusal to accept the letter should have been endorsed as such by a witness and records kept. A Good Chit to such black sheep will only propagate the misery of many companies in future and does not deserve sympathy for common good. I know of one AGM HR, who was fired for misconduct and could not get another job.
7. Even if the company's name has come by mistake, there is no harm done. We as a community are in a learning curve. Best of the companies learn from their own failures and make their own case studies. Great people make fun of themselves and laugh it out. No big deal.
8. I will suggest to all my HR colleagues to keep the probation period to analyse and confirm behavior patterns before confirmation. Skills can be trained and bettered but bad character traits are not trainable. People suppress it to hide their aabnormality. But a deliberate Stress Management brings the true self out in the open.
I also look forward to many more suggestions from this learned galaxy of professionals.