HomeBUSINESSUnderstanding workplace misconduct in India

Understanding workplace misconduct in India

In the dynamic corporate landscape of India, understanding the nuances of workplace misconduct in India is paramount. As we navigate the intricacies of professional behaviour, let’s shed light on what constitutes misconduct and its implications for employees in India. Misconduct in the workplace can lead to a myriad of issues, from a disrupted work environment to legal consequences. But what exactly is misconduct, and how does it affect you as an employee in India? Let’s delve into some pressing questions and real-life scenarios.

Another critical aspect affecting the workplace is the compliance with Labour Laws, an area where many companies falter. Our analysis on Why Are Companies Not Compliant With The Labour Laws Act? unpacks the challenges and implications of failing to adhere to labor regulations, including the financial and operational burdens it places on employers. This insight is crucial for understanding the broader context of workplace ethics and legality, providing a perspective on how compliance issues can indirectly lead to misconduct.

Workplace Misconduct in India

How is Misconduct defined in the Indian context?

Misconduct is essentially any behaviour that’s improper or not conducive to a harmonious work environment. While the specifics of what constitutes misconduct can be found in your employment contract or company policies, it’s crucial to have a comprehensive understanding. Why? Because there have been cases where courts ruled that for a termination to be valid, the employee should have known that their behaviour was constituted as misconduct.

Note: The Industrial Employment (Standing Orders) Act, 1946 (SO Act) provides a list of actions considered misconduct. If a company hasn’t drafted its standing orders, the model ones from the SO Act apply. However, certain IT/ITeS establishments in Bangalore are exempt from this Act, provided they meet specific conditions. In such cases, the definition of misconduct comes solely from the employment contracts and company policies.

Certain IT/ITeS establishments in Bangalore have exemptions from the SO Act. These exemptions are granted when companies meet specific criteria, such as having their own comprehensive misconduct policies or being part of certain industry sectors. It’s essential for employees in these establishments to be familiar with their individual company policies, as they might differ from the standard SO Act guidelines.

Case Study 1: The Consequences of Financial Misconduct

Mr. Sharma, a senior accountant at a renowned IT firm in Bangalore, was entrusted with the responsibility of managing the company’s finances. Over time, he started diverting small amounts of money into a personal account, thinking it would go unnoticed. However, during an annual audit, discrepancies were found. A detailed investigation revealed Mr. Sharma’s actions. Not only was he terminated without notice, but he also faced legal consequences under the Indian Penal Code. This incident served as a stark reminder to all employees about the severe repercussions of financial misconduct.

What’s the process for Termination due to misconduct?

Terminating an employee on misconduct grounds requires adherence to specific principles. For certain misconduct types, like sexual harassment or unauthorized absence, the process varies. Termination based on misconduct is stigmatic, meaning it carries a negative connotation, and doesn’t require any notice or payment in lieu of notice.

In addition to misconduct, poor performance is another ground for termination that necessitates a distinct approach. Both employers and employees must understand how performance issues are handled legally. Our detailed exploration of Can Employees Get Fired for Poor Performance? delves into the legal backdrop, processes involved, and the rights and duties of each party in cases of performance-based dismissals. We discuss the importance of Performance Improvement Plans (PIPs) and the judicial viewpoint on performance terminations, offering a comprehensive guide for navigating these challenging situations.

How does the law address Sexual Harassment?

For complaints raised by women, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (SH Act) lays down the process. An Internal Complaints Committee (ICC) investigates these complaints. The ICC must complete its inquiry within 90 days and submit a report with recommendations. The employer then acts based on this report. Interestingly, while the SH Act is specific to women, some companies use the same process for complaints raised by men to maintain uniformity.

Case Study 2: Addressing Sexual Harassment proactively

Ms. Priya, a new joinee at a Mumbai-based marketing agency, felt uncomfortable due to inappropriate comments from a colleague. She reported the issue to the Internal Complaints Committee (ICC). The ICC, adhering to the Sexual Harassment of Women at Workplace Act, conducted a thorough investigation. The accused was found guilty and faced disciplinary action. The company also organized workshops on workplace etiquette and respect, ensuring such incidents were minimized in the future.

How are other Misconduct types handled?

For other misconduct types, the principles of natural justice are paramount:

  • The employee should be informed about the charges against them.
  • They should have a chance to defend themselves.
  • The inquiry should be impartial.
  • Actions taken should be in good faith and reasonable.

A disciplinary inquiry typically involves:

  • Preliminary Inquiry: To determine if there’s a case.
  • Charge sheet: Explaining the allegations against the employee.
  • Domestic Inquiry: If the employee denies charges or doesn’t provide a satisfactory explanation, a detailed inquiry is conducted.

What about Unauthorized Absence?

Unjustified absence is often seen as misconduct. The principles of natural justice apply here too. If an employee has valid reasons for their absence, a termination might be deemed harsh.

While discussing misconduct and its ramifications, it’s pertinent to consider the role of employment bonds in retaining talent and ensuring commitment. Our examination of Employment Bonds and Their Validity offers insights into the legal standing of such bonds, highlighting the balance between enforcing commitment and ensuring employee freedoms. Understand the distinction between reasonable employment bonds and restrictive covenants that may be deemed invalid, along with judicial perspectives on the matter. This discussion aids employers and employees in navigating the complexities of employment bonds with an informed perspective.


Misconduct can have severe repercussions, both for the individual and the organization. As employees, it’s our duty to understand the boundaries and implications of our actions. A harmonious workplace thrives on mutual respect, understanding, and adherence to the set guidelines. Stay informed, stay respectful, and let’s create a positive work environment for all!

Understanding misconduct is just one facet of the broader landscape of job termination in India. For those keen on diving deeper into the nuances of termination, especially the distinction between “Termination with Cause” and “Termination without Cause,” we recommend this comprehensive guide: “What is Termination with Cause?”. This article not only sheds light on the grounds and implications of termination with cause but also provides insights into the procedures and rights associated with termination without cause. Equip yourself with this knowledge to navigate the complexities of job termination in India confidently.

Have you ever encountered or observed misconduct in your workplace? Share your experiences and insights in the comments below. Let’s foster a community where we can learn from each other and work towards a more harmonious professional environment. Subscribe to our newsletter – ‘The Success Circle‘ for more such insights!

Related Blogs

Financial Advisor


Follow Us


Jagruk Investor

Jagruk Employees

In an era dominated by technological advancements and digital connectivity, the landscape of financial deception has evolved into a labyrinth of sophisticated schemes, lurking...

Don't Miss

Recent Comments