Employee Disciplinary Policy

What is an Employee Disciplinary Policy?

An Employee Disciplinary Policy specifies the standards and procedures for the expected conduct of employees in the workplace and the consequences for breaking the same. The goal of the Policy is to maintain a productive and harmonious work environment by clearly defining acceptable behaviour and consequences of misconduct. It also helps in consistently executing the rules without any discrimination among the employees.

This policy can be used by any type of organization despite their size or type of business including a company, LLP, partnership, etc..

What is the difference between an Employee Disciplinary Policy and a Code of Conduct Policy?

An Employee Code of Conduct Policy focuses on setting the expected behaviour of an employee while working for an organization including attendance, communication, dressing, etc.

On the other hand, an the present Policy comes into effect only when an employee violates or breaks the policies of the organization including the Code of Conduct Policy, Employee Handbook, etc.

Is it mandatory to have an Employee Disciplinary Policy?

No, it is not mandatory. However, having this Policy helps to ensure consistency and fairness in handling disciplinary issues. It also protects the organization from any legal disputes in future.

What does "Employee Misconduct" mean?

Employee misconduct refers to any behaviour by an employee that violates organization policies, rules or applicable laws. This can include actions such as insubordination, harassment, theft or any such behaviour that affects the smooth functioning of the organisation.

Who can enter into an Employee Disciplinary Policy?

The Employee Disciplinary Policy is applicable to the current employees of the organization who have entered into an employment agreement. It is not applicable to external contractors or former employees.

What can be the duration of an Employee Disciplinary Policy?

There is no defined period for this type of a policy and it often remains in effect during the existence of the organization. The contents of the policy need to be changed as per the updates in applicable laws and changes in the internal policies of the organization.

What has to be done once a Policy is ready?

Once the policy is drafted, it can be circulated to the employees through electronic medium or in physical copies. The organization may ask the employees to acknowledge this policy and send it back for record purposes. It is better to incorporate this document in employment agreements and get it signed at the time of joining the organization.

It is always better to make the policy accessible to all employees of the organization and update them whenever there are any changes made to this policy.

Which documents should be attached along with an Employee Disciplinary Policy?

The Employee Disciplinary Policy can be used as a supplementary document to the Employment Agreement, Employee Code of Conduct Policy, Non-Compete Agreement, Remote Work Policy, and Employee Privacy Policy.

What if the employee violates the Policy?

The possible actions if the employee violates the Employee Disciplinary Policy include:

• Verbal Warning: The manager or supervisor upon noticing the violation can warn the employee of possible actions if not corrected.
• Written Warning: If the employee does not correct after a written warning, the organization can send an employee warning letter, asking the employee to correct the actions.
• Suspension: The employee can be suspended for a particular period from the duty.
• Termination: If the act of the employee is gross in nature the employment can be terminated. The contents of the employment agreement and applicable laws shall be checked before such termination.

What must an Employee Disciplinary Policy contain?

This Policy must include the following important areas:

• Scope: This defines the categories of employees covered and excluded under this Policy.
• General guidelines: this includes the general guidelines to the employees and employers with regard to the implementation of this policy.
• Gross misconduct: defines the acts/omissions on the part of employees considered as gross misconduct.
• Disciplinary Procedures: this includes the verbal warning, written warning, final written warning, suspension, termination and so on.
• Disciplinary Action Committee: this includes the details of the committee including the name and details of the committee members, quorum, and so on.
• Procedures of Disciplinary Action Committee: this includes the procedures to be followed by the committee including investigation, collection of evidence, hearing, making reports, and so on.
• Appeal: this includes the rights to appeal of the employee against whom the action has been taken including the grounds of appeal, period of appeal, reply to the appeal and so on.

Which laws are applicable to an Employee Disciplinary Policy?

This policy is covered under the general employment acts and rules of concerned states and the rules under the Industrial Disputes Act of 1947 and the Factories Act of 1948 may also be applicable. If the offence is sexual harassment, the POSH Act, 2013 will be applicable. The aggravated forms of derelictions on the part of employees may be covered under the Bharatiya Nyaya Sanhita, 2023

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