How To Deal With An Employee Who Is Caught Cheating The Co.

Dear Friends,
One of our employee on overseas assisgnment has been caught manipulting accounts and cheating the company. Few documents have come to light which shows the manipulation and dishonesty.
How should we handle him.
Should the police complaint be filed or he just packed and sent back.
Please suggest how to handle so that company image is not sullied and at the same time the message goes that one can't get away after messing around.
Thanks
Anil K Chopra

Dear Anil Chopra,
· First initiate quick and through investigation of fraud. Dig as deep as possible to establish the extent of damage and loss and involvement of others (if any). Your action against fraudster will depend upon the extent of damage and loss.
· Try and collect as much proofs and evidence to nail the fraudster.
· Do above things with utmost secrecy.
· Try and catch fraudster by surprise, giving him no time to think and hide things.
· Ask him to confess his wrong doings in writing. Extract confession by giving threats of serious action, police case etc. Lure him to confess by falsely committing that he will not loose his job and no police action will be taken, in case he confesses in full.
· His colleagues, bosses may try to underplay the fraud and hush-up the things as some blame may come to them. Just ignore them.
· I am assuming that, fraudster being on overseas assignment must be senior employee (manager/officer/engineer) and will not have any protection from any labor law.
· Involve your higher-ups in whole process.
· Depending upon extent of damage decide action. Either terminate or ask the fraudster to resign.
· Make sure fraudster agrees to pay back money made by him with interest. Rather collect it from him.
· Let hire-ups decide on the police action. Police will not accept FIR easily. They will be lured only if amount of fraud is attractive or some other attraction is there.
Thanks & Regards

this employee must be asked to go...he'll willingly do so once a legal action is suggeted for the malpractices.

Dear all,
Two ways to handle this situations - (i) To punish the culprit - so that the same will be an example setting to other employees, eg - police complaint, proceeding with court cases etc etc (ii) To find out the actual problem (internal circumstances) which lead the employee to do so. eg: Financial issues, non payment of salary in time, bad management etc etc & then try to sort out the issues by having a detailed discussion with the said employee & find out the epi-centre of the problem & then take a decision, whether to punish the employee or to take corrective actions as such the same may not repeated again in your concern.
I suggest the second option will be better to prevent such issues in long term..
Best wishes,
P.K.M.Kumar, Manager Legal,
Bangalore.
09379770903.

Has this person broken the law in the country that he's working? If so, you may have an obligation to refer this to the local authorities, as well as take action yourselves.

Dear Akcind,
If there is a misrepresentation done by the said employee in regards to the company with a third party,
If name of the company or assets or position of the said employee has been used for personal benefit by representing or providing malicious information, and thus causing a third party tom do some thing, which other wise he wouldn't do, and such act or omission of the third party cause the company to be liable,
If both or either of similar actions has occurred, then you need to book the same with local law enforcement authority, and thus save the company from liability for the wrongful acts of the person
You may terminate the person immediately based on the proof accumulated.
If the above incident has occurred outside India, then deport the Indian employee back to India and then cause the person to resign, thus if he wishes to fight the case in court of law, then he will have to do the same in India
Regards
Octavious

Three steps to be taken
1. Recover the amount of money lost. For that assess the exact loss
2. Initiate disciplinary action leading to award of punishment, which may be dismissal
3. Initiate criminal action as per IPC or as applicable to him since he is in another country.
Proper procedure is to be followed and no steps to be taken in a hurry.

Dear;

Love;

All legal options are open to you, if it is not much critical situation. But if it is not much critical, you might not have asked for advice. If the situation is most critical, discuss the issue directly with the top management, before any legal action against the gentleman and do not disclose this to anybody, even to your superiors.

There is a real story in the corporate world and both the companies are existing, hence I do not disclose the name of any a company but give you the details about the story.

A big company having turnover in few hundred crors, had a general manager (GM), who was working with the company for many years. He was making money from raw material purchase and the Chairman cum Managing Director (CMD) was aware about it, but he used to ignore it deliberately, as the GM was so much capable and influential in the trade. The GM has poured his blood for the growth of the company and with his great efforts and skill; the company could reach to the monopolistic era and enjoying most sound position and fantastic growth.

An elder son the CMD return from his abroad study in management and resumed the company as director finance. One day he found something fishy while the GM was talking on phone in his chamber. That doubt leads him to investigation and through inquiry, and after two months exercise, he found some documentary proof against the GM.

He went to his father and briefed him about the fraud by GM and his father told him that he knew it since years, hence no need to worry about. But the son was educated in best university of the world and argued with his father. Finally the father left the discion on him.

The son attended the very next board meeting with all the proofs he had and asked the board of directors to take punitive actions against the GM and finally it was decided to sack the GM with immediate effect.

The competitor company, when came to know about it, they immediately offered double the salary to that GM and recruited him as director sales. To day that competitor company is no one company in India and the no one company one day is pushed to no two company.

If you are close to some senior executives, you will know the name of company and the GM I am talking about.

Hence deal with the situation after due analysis. Know how important the employee is for the company. Know the present losses V/s future losses. Know possibility of replacement and its consequences. Know how big the fraud is. Know the ways he made this fraud. Improve your system and introduce more checks, so that the same or similar situation does not arise in future.

If the situation is not much critical, you may go a head with legal action as per the advice of your legal department or consultant and recover the losses and also terminate his services.

His Blessings;

Sharad Shah