📘 Disciplinary Proceedings & Domestic Enquiry Policy
Disciplinary Proceedings & Domestic Enquiry Policy
For: [Company Name] (PAN India Operations, XXXX+ Employees)
Effective Date: [Insert Date]
Version: 1.0
📌 1. Objective
To ensure fair, transparent, and consistent handling of employee misconduct through structured disciplinary proceedings and domestic enquiry mechanisms, upholding organizational integrity and legal compliance.
⚖️ 2. Scope
This policy applies to all regular, probationary, and contractual employees (excluding outsourced vendor staff) across all locations of [NBFC Name] in India.
📚 3. Definitions
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Misconduct: Any violation of company policies, code of conduct, standing orders, employment terms, or laws.
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Delinquent Employee: An employee against whom allegations of misconduct are made.
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Disciplinary Authority: Officer empowered to initiate and conclude disciplinary action.
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Enquiry Officer (EO): A neutral person (internal or external) appointed to conduct a domestic enquiry.
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Presenting Officer (PO): A representative appointed to present the case against the delinquent employee.
📝 4. Types of Misconduct
A. Minor Misconduct
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Habitual late attendance
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Negligence in work
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Use of abusive language
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Minor insubordination
B. Major Misconduct
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Fraud, theft, misappropriation
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Sexual harassment (to be handled as per POSH Policy)
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Breach of confidentiality
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Physical assault
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Falsification of records
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Unauthorized absence beyond 8 days
🛠 5. Disciplinary Procedure
Step 1: Preliminary Investigation
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Immediate supervisor/HR investigates prima facie facts.
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Record statements and gather documents.
Step 2: Show Cause Notice
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Issued within 7 working days of knowing the misconduct.
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Employee is given 3–7 working days to respond.
Step 3: Decision on Domestic Enquiry
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If the response is unsatisfactory, an enquiry is initiated.
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Appointment of Enquiry Officer (external preferred for major cases) and Presenting Officer.
Step 4: Conduct of Domestic Enquiry
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Adherence to principles of natural justice:
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Opportunity to cross-examine witnesses
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Representation allowed (but no external lawyers unless both sides agree)
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Enquiry Report to be submitted within 30 days.
Step 5: Findings and Recommendations
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HR reviews the enquiry report and recommends action.
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Disciplinary Authority issues a final Show Cause before punishment.
Step 6: Final Order
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Based on report and employee response:
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Warning
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Suspension
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Demotion
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Termination
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All orders must be reasoned and recorded.
⏳ 6. Suspension Pending Enquiry
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Can be invoked in case of major misconduct.
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Suspension order to be in writing with subsistence allowance as per law (generally 50% basic + DA).
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Not to exceed 90 days unless delay is attributable to the employee.
🛡 7. Rights of the Employee
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Right to fair hearing
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Right to present evidence and witnesses
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Right to be informed of charges
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Right to appeal final disciplinary order (within 15 working days)
🧾 8. Documentation & Record-Keeping
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All disciplinary cases must be logged in HRMS and physical files maintained securely.
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Enquiry proceedings should be documented verbatim or via audio recording (subject to consent).
🚨 9. Special Cases
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Sexual Harassment: Handled exclusively by Internal Committee under POSH Act.
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Whistleblower Complaints: May lead to independent investigation by Ethics/Compliance.
🏛 10. Appeal Mechanism
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One-tier appeal process within 15 working days to the Appellate Authority (next senior level or designated committee).
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Decision to be given in writing within 30 days.
🔁 11. Review & Updates
This policy shall be reviewed annually or upon significant legal/policy changes.
✅ Annexures
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Format A: Show Cause Notice
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Format B: Charge Sheet
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Format C: Suspension Order
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Format D: Enquiry Officer Appointment Letter
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Format E: Final Order Template
Below are draft templates for all the Annexures mentioned in the Disciplinary Proceedings and Domestic Enquiry Policy for your NBFC with a PAN India presence.
📑 Annexure A: Draft Show Cause Notice
[On Company Letterhead]
Ref No.: [XXX]
Date: [DD/MM/YYYY]
To,
[Employee Name]
[Employee Code]
[Designation]
[Department]
Subject: Show Cause Notice for Alleged Misconduct
Dear [Mr./Ms. Last Name],
It has been reported that on [Date], you allegedly committed the following act(s) of misconduct:
[Mention details – incident date, time, nature of misconduct, witnesses, etc.]
Such act(s), if proven, constitute a violation of the Company’s Code of Conduct and may be categorized as [Minor/Major] misconduct.
You are hereby called upon to show cause in writing within 5 working days from the date of receipt of this notice as to why disciplinary action should not be initiated against you.
If no response is received within the stipulated time, it will be presumed that you have no explanation to offer, and disciplinary proceedings may be initiated ex parte.
Yours faithfully,
[Name]
[Designation]
[HR / Disciplinary Authority]
📑 Annexure B: Draft Charge Sheet
[On Company Letterhead]
Ref No.: [XXX]
Date: [DD/MM/YYYY]
To,
[Employee Name]
[Employee Code]
[Designation]
Subject: Charge Sheet for Alleged Misconduct
Dear [Mr./Ms. Last Name],
Upon review of your conduct, the following charges are being formally framed against you:
| Charge No. | Details of Alleged Misconduct | Date/Time | Place |
|---|---|---|---|
| 1 | [E.g., Unauthorized absence] | [Date] | [Location] |
| 2 | [E.g., Use of abusive language] | [Date] | [Location] |
You are hereby required to submit your written explanation within 7 working days from the date of receipt of this charge sheet.
Please note that failure to respond within the stipulated period may result in the initiation of a domestic enquiry.
Yours sincerely,
[Name]
[Designation]
[Disciplinary Authority]
📑 Annexure C: Draft Suspension Order
[On Company Letterhead]
Ref No.: [XXX]
Date: [DD/MM/YYYY]
To,
[Employee Name]
[Employee Code]
[Designation]
Subject: Order of Suspension Pending Enquiry
Dear [Mr./Ms. Last Name],
In view of the serious nature of the allegations against you, and pending further investigation and disciplinary enquiry, you are hereby placed under suspension with immediate effect, as per clause [x] of the Standing Orders / Service Rules.
During the period of suspension, you shall be paid a subsistence allowance in accordance with the provisions of applicable laws and company policy.
You are directed not to leave your headquarters without written permission and to report to HR as and when required.
Yours faithfully,
[Name]
[Designation]
[Disciplinary Authority]
📑 Annexure D: Enquiry Officer Appointment Letter
[On Company Letterhead]
Ref No.: [XXX]
Date: [DD/MM/YYYY]
To,
[Enquiry Officer Name]
[Designation / External Counsel if any]
Subject: Appointment as Enquiry Officer
Dear [Mr./Ms. Last Name],
You are hereby appointed as the Enquiry Officer to conduct the domestic enquiry in the matter of alleged misconduct by Mr./Ms. [Employee Name], Employee Code [XXX], working as [Designation] at [Location].
You are requested to conduct the enquiry in line with the principles of natural justice, allowing both parties an equal opportunity to be heard.
You may commence the proceedings on or after [start date] and are requested to conclude the enquiry preferably within 30 days.
Thank you for your cooperation.
Yours faithfully,
[Name]
[Designation]
[Disciplinary Authority]
📑 Annexure E: Draft Final Order Template
[On Company Letterhead]
Ref No.: [XXX]
Date: [DD/MM/YYYY]
To,
[Employee Name]
[Employee Code]
[Designation]
Subject: Final Order in Disciplinary Proceedings
Dear [Mr./Ms. Last Name],
Reference is made to the disciplinary proceedings initiated against you vide Show Cause Notice dated [Date] and the Charge Sheet dated [Date]. A domestic enquiry was conducted by Mr./Ms. [Enquiry Officer], who submitted the report dated [Date].
The enquiry has found you [guilty/not guilty] of the following misconduct(s):
[Summarize charges proven/not proven]
Based on the findings and your response dated [Date], the following punishment is hereby imposed upon you:
✅ [Warning / Suspension for __ days / Demotion / Termination]
Effective from: [Date]
This order is being issued after considering all aspects and in adherence to company policy and applicable legal provisions.
You have the right to appeal this decision within 15 working days from the date of this letter.
Yours sincerely,
[Name]
[Designation]
[Disciplinary Authority]
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