Handout for MBA IV- HR specialization –Labour Laws- II

Steps in Domestic Enquiry:

1. Report of misconduct and Prima-facie enquiry:
The act/ omission which is a misconduct as per the standing orders of the organization, must be
reported orally/ in writing to a superior. The superior/ HR Manager also may take a note of such
act/ omission oh his own. The HR manager to conduct a prima-facie enquiry about the reported
misconduct immediately after the report of the misconduct.
2. Show- cause Notice:
After the prima facie enquiry conducted by the HR Manager, if he feels that there is substance in
the report, he shall issue a SHOW CAUSE Notice to the concerned workman. The contents of the
notice are as under:
a. The name of the concerned workman
b. The misconduct (act or omission for which the notice is issued)
c. The details of misconduct as to time, place and date
d. Asking for written explanation as to Show cause why strict action should not be taken
against him/ her for the misconduct
e. It must be mentioned that the explanation must be submitted within 72 hours of
receiving the notice and also that non- acceptance of the notice is also a misconduct as
per the standing orders.
f. The show cause notice will bear the signature of the enquiring authority (HR Head) and
designation.
3. Written Explanation to be submitted by the concerned workman:
The concerned workman to submit his explanation to the Employer/ HR Deptt. Within given
time. The HR manager to go through the explanation and decide whether conduct of Domestic
Enquiry is necessary or not.
4. Framing of Charge Sheet:
After going through the explanation submitted by the concerned workman, if the employer feels
that the workman may be guilty of the misconduct and it is necessary to conduct enquiry for the
same, he will frame a charge sheet mentioning following details:
a. Date, time and place of misconduct,
b. Nature of misconduct
c. Name , Dept., employee details of the concerned workman
d. The details of issuing authority (name, designation, and dept. of the person who signs
the charge sheet)
e. The fact that non- acceptance / refusal to accept charge sheet is also misconduct.
5. Suspension During Enquiry:
If the employer feels that the presence of the concerned workman will cause disturbance to the
work, or he/ she will tamper with the evidences against him, the concerned workman may be
suspended pending enquiry by the employer. Suspension is not necessary in all cases, but, it is
more of the discretion of the employer.

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Handout for MBA IV- HR specialization –Labour Laws- II

Payment of Subsistence Allowance:

Subsistence allowance is the periodical payment made to the suspended workman as per the
provisions of Section 10- A of the Industrial Employment Standing Orders Act. This is a payment
made with an intention to support the survival of the workman and his family as he/ she is not
yet proved guilty, however, his presence is not required in the premises of employment.
6. Appointment of Enquiry Officer:
The employer to appoint an Enquiry Office to conduct the enquiry against the concerned
workman w.r.t. the misconduct. Following points are considered while appointing the enquiry
officer:
o He/ she has knowledge of the process
o He/ she has no interest vested in the concerned workman/ the misconduct
subject matter.
o He/ she must be an independent person – preferably a lawyer, retired judge or
a person known for his impartiality- in certain cases employee from the same
organization also may be appointed as the enquiry officer.
o The most important qualification of enquiry officer is IMPARTIALITY
7. Notice of Domestic Enquiry:
The employer now to send a notice to the concerned workman, a notice mentioning the details
of the domestic enquiry mentioning following details:
 Name of the enquiry officer
 Date, time and place of enquiry
8. Conduct of Domestic Enquiry:
The enquiry to start on the given date and time and at the place. The Enquiry officer is the
presiding officer and he shall observe the principles of natural justice while conducting the
enquiry.
He shall give equal and reasonable opportunity of being heard to both the parties and allow the
parties to produce evidences and conduct chief, cross and re-examination (like usual court
proceedings). The concerned workman may engage a lawyer or choose to defend himself on his
own.
It shall be the duty of the enquiry officer to see to it that the concerned workman gets the
subsistence allowance in case of suspension pending enquiry.
9. Report of Enquiry officer:
After the enquiry is over, the enquiry officer will review the evidences produced before him and
submit a report to the employer mentioning his opinion whether the concerned workman is
guilty of the misconduct or not.
10. Action to be taken upon the report/ awarding of punishment:
The employer to go through the report and the documents/ evidences produced during the
enquiry and if he is of the opinion that the concerned workman is guilty of misconduct, he shall
award a punishment: dismissal/ discharge of the workman.
He must consider following points before awarding punishment:
 The past behavior of the concerned workman
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Handout for MBA IV- HR specialization –Labour Laws- II

 Gravity of the misconduct

 Punishment is proportionate to the gravity of the misconduct
 Dismissal or discharge/ termination should be the last option.

If, the employer is of the opinion that the enquiry was not conducted properly, he may appoint
a new enquiry officer and start a fresh enquiry.

Principles of Natural Justice:

Principles of Natural Justice are the heart of the process of administering justice to parties. It is
not coded anywhere in the books of law but have been evolved during the administration of
justice. The law recognizes the fairness must be observed toward both the parties during the
process and each party should get an equal chance to represent it.

1. No one should be the judge of his own case: This principle means that the person who acts
/ is appointed as a judge to administer justice shall be a person impartial and he should not
have interest in the matter in any manner. Either of the parties to the suit shall not be the
judge as well. This principle is based on the motive of observing total impartiality in the
process of giving justice.

2. Equal and reasonable opportunity of being heard must be given to both the parties: Both
the parties to the suit must get equal opportunity to represent their side. Reasonableness is
not defined in the books of law, as it depends from case to case. But, it means showing
consideration towards the parties during the process of justice to certain extent.

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