Discipline & Domestic Enquiry

Gautam Bandyopadhyay
St Xavier’s College
(COP : HR)
 What will be discussed?
• Concept
• Need
• Hot Stove Rule
• Natural Justice
• Domestic Enquiry
• Case Reference

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 Concept

“Discipline may be considered as a force that

prompts individuals or groups to observe the rules,
regulations and procedures which are deemed to be
necessary for the effective functioning of an
organization.”
….Richard Callhoon

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 Objectives
• A willing acceptance of the rules, regulations and
procedures of an organization so that organizational
goals can be attained
• To develop a spirit of tolerance and as such make
adjustments among the employees
• To create an atmosphere where employees will
respect each other
• An essential tool for smooth running of an
organization and to increase its productivity

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 Hot Stove Rule
• McGregor’s ‘Hot Stove Rule’ implies that if the rules
and penalties are clear and well understood then a
violation produces its natural consequences.
• It should be like penalty of touching a hot stove i.e.
immediate, almost automatic.
• Delay in disciplinary action may lead to low morale of
other workmen who are law abiding.
• Two important factors are : Consistency and
impersonality.

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 Purpose of DE

The purpose of a domestic enquiry is to find out

whether the misconduct alleged against the
delinquent workman has in fact been committed by
him, before a disciplinary punishment could be
inflicted upon him. ... Likewise, the workman has to
show that he has not committed the alleged act.

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 Legality of DE

Domestic enquiry is not considered as a legal

requirement under the Industrial Disputes Act, or
other substantive laws such as the Factories act,
Mines Act, etc. but has been provided under the
standing orders to be framed in the Industrial
Employment (Standing Order Act) 1946.

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 Procedures for Disciplinary Action
• An accurate statement of the disciplinary problem
• Collection of data or facts related to the case
• Charge sheet is framed and issued
• Receipt of explanation from charge sheeted employee
• Issue of notice of enquiry
• Holding of enquiry
• Findings of enquiry
• Communication of the findings to the concerned employee
• Decision
• Communication of the order

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 Domestic Enquiry
Following steps are to be undertaken in sequence:
1. Preliminary investigation to establish prima facie case
2. Issue and service of a charge-sheet
3. To receive and consideration of the explanation
4. Giving notice of enquiry in case of unsatisfactory explanation
5. Suspension with or without pay, pending enquiry (if needed)
6. Enquiry into the charge:
– To decide who should conduct
– To decide as where and how to proceed
– To decide about the order of examining witnesses
7. Recording of findings by the enquiry officer
8. Communication of findings to the charge sheeted employee
9. Decision regarding punishment and
10. Communication of Punishment
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 Issue of Charge-Sheet
• To be drafted properly so that there is no confusion
• The date, time and place of its commission along with other
relevant details should be specified
• If Standing Order is there, it must conform the same
• Proposed punishment may be notified, if found guilty
• To call for an explanation in writing within specified time
• To be issued under the signature of disciplinary authority
• To be properly served keeping proof of delivery as follows:
a) If the workman is present, he should sign the duplicate copy
b) If refuses to sign, then duplicate copy may be signed by the
manager and two witnesses
c) Deliver by registered post with acknowledgement, if needed

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 Suspension
• A charge sheet may be given with or without suspension
• It depends on nature of misconduct and if it is in the interest
of safety, security and discipline in the organization
• Suspension may be with or without pay (pending enquiry)
• During suspension, subsistence allowance needs to be paid as
per S.10A of Industrial Employment (Standing Orders) Act,
1946 along with WB Subsistence Allowance Act, 1969 for WB.
• WB : 50% of Wages for first 90 days, thereafter 75%.
• In a case where standing orders limit the period of
suspension, the enquiry must be completed within the period,
else full wages should be paid for the time exceeded.

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 Case Law on Subsistence Allowance

• Payment under Section 17-B of the I. D. Act is in the nature

of subsistence allowance, not refundable nor recoverable,
being independent in nature does not merge with the final
order.
Rajeshwar Mahto vs. Alok Kumar Gupta, G.M. M/s. Birla
Corporation Ltd. 2018 LLR 368 (S.C.)

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 Conducting the Enquiry
• Who should hold the enquiry?
• Standing Order may provide as to who should hold the enquiry.
• Else, someone who is not directly connected with the case.
• Outsider, who is acquainted with the process, is a better option
• There should be no personal bias for the sake of natural justice.
• Request of adjournment may be granted by the EO.
• Nominee of the accused person, if requested, to be granted.
• Interpreter, if needed, can also be granted by the EO.
• Witnesses are to be examined in presence of the accused person
• First management witnesses need to be examined who should be
cross examined by the workman. Then it will be reversed.
• If the workman does not turn up for the enquiry without notice
or reasonable cause or refuse to cooperate, enquiry can be held
ex parte.
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 Findings of the Enquiry Officer
• At the conclusion of the enquiry proceedings, by
applying mind to all the facts that emerged at the
enquiry, the enquiry officer should decide as to
whether the charges made are valid or not along
with reasons for his/her findings.

• As far as possible, he should refrain from awarding

punishment and leave it to the decision of the
appropriate authority.

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 Awarding of Punishment

• This is a management task and punishment awarded

should be based on the findings of the enquiry and
past record of the employee.

• The gravity of misconduct should be taken into

consideration.

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 Communication of Punishment
The letter communicating the punishment should
contain :
1. Ref to the letter of charge sheet issued earlier
2. Ref to the enquiry held
3. Ref to the findings of the enquiry
4. Decisions whether to punish or not
5. Date from which the punishment is to be effective

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 Case Reference…1

• Once the departmental enquiry was held legal and proper,

interference in punishment by the labour court by setting
aside the same is not justified.
Management of Bharat Heavy Electricals Ltd. vs. M. Mani &
Anr. 2018 LLR 2 (S.C.)

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 Case Reference…2

• Dishonour of cheque issued by bank employee in favour of

his brother cannot be misconduct for bank employer to issue
charge-sheet and dismiss him.
UCO Bank vs. Rajendra Shankar Shukla. 2018 (157) FLR P.482;
2018 LLR 344 (S.C.)

• Labour Court has to frame preliminary issue on fairness and

validity of the inquiry.
Kurukshetra University vs. Prithvi Singh. 2018 LLR 371 (S.C.)

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 Case Reference…3

• The labour court award granting reinstatement with 50%

back-wages will not hold good when the labour court
(1) failed to decide the validity and legality of the enquiry,
(2) called the parties to lead evidence on all issues including
the charge of misconduct,
(3) examined the findings of the enquiry officer without
coming to conclusion that the enquiry was vitiated.
M.L. Singla vs. Punjab National Bank. 2018 III CLR 668 (S.C.)

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 Thank You

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