The Rajasthan High Court has highlighted the importance of treating employees fairly and cautioned employers against unjustly taking away their livelihoods unreasonably and causing trauma.
In a case involving Kotak Mahindra Bank, a senior branch manager accused of fraud had his termination overturned by the Rajasthan High Court. The Court found the bank’s decision to fire the manager illegal and damaging.
Justice Arun Monga told the bank to obey the labour commissioner’s order, which said firing the manager was wrong and asked for their reinstatement with benefits. The Court said making such a stigmatising decision without a fair inquiry is sheer injustice. The ruling stressed the need to be cautious before taking away an employee’s livelihood over alleged misconduct.
The bank wanted to conduct a new inquiry, but the Court did not allow it, pointing out the bank’s biased behaviour towards the employee. The Court stressed that a post-decision inquiry may be unfair and that ensuring an unbiased inquiry couldn’t be guaranteed.
The bank said the senior branch manager wasn’t a worker under the Rajasthan Shops and Commercial Establishments Act. However, the Court disagreed, confirming that the manager was an employee, and therefore, the Act applied. The Court stressed the need for proper evidence and inquiry when dismissing someone for misconduct.
The Court said the bank’s argument about the labour officer’s order didn’t need a prior hearing. Since the bank didn’t take part in the proceedings, it couldn’t bring up technicalities later.
