Compensation after fraud activities by employee

If some employees found fraud activity in the organisation and we have to terminate the employee should we pay him/her for the days worked in the organisation
ex :1. if someone fake the documents for the job 2. done some illegal activities in the organisation 3. absconding

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Hi,

No, its not required or mandatory to pay any compensation even you can stop any statutory liability towards him on the grounds of illegal or fraud done with the company, but proper documentation and acknowledgment should be in place before proceeding for the same.

You should send him show cause notice, conduct the enquiry on the fraud, capture his statement, take his acknowledgment etc.

Regards
Arpana

Regards
Arpana

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Usually employee do not acknowledge fraud in written with signature .What should we do in such cases.

Saritha Gorthy
Sr. HR Manager, India

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Hi,

Saritha, if an employee doesn’t accept then have a strong proof which show fraud done by him. If any scrutiny comes in future you should be able to show all the documents against him and reason for not paying any compensation.

Regards
Arpana

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Hi @Arpana ,

Could you please tell what all the legal actions that can be taken against an employee incase of misrepresentation.

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Hi,

I would suggest if you can go through below mentioned link.

Article: Mitigating Employee Frauds — People Matters

I hope this article may help you.

Regards
Arpana

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