Employee fraud-what to do?
rashisharma
(Querist) 19 February 2015
This query is : Resolved
Dear Professional Members
One of my friend was working with an MNC as International Sales Manager. He worked with that company for 2.5 years. He resigned one month back.
But the Company's Director didn’t want to let him go as the company will suffer business loss due to his resignation. After many ifs’ & buts’ he finally resigned and his resignation was accepted by the Director and clear off full & final dues from the Company.
Now the Company's Director want to investigate the reimbursement of expenses taken by him during his employment period. Although it's a part of his salary package.
Director start checking out each & every Travelling Bills, Conveyance Bills, Hotels Bills, Telephone Bills, Food Bills, Medical Bills, etc claimed by him as reimbursement from the company. If any fake bill was submitted & found during that investigation, the director will sue him for Fraud.
As discussed with him (My Friend), he told me that during his employment period he submitted all bills correctly (original copy) EXCEPT Medical Bills (For medicines).
He submitted fake Medical Bills including a fake VAT number on it total of Rs.8000 (Approx) during the period of his employment and usually other employees were also doing the same practice in the company.
NOW MY QUESTION IS :
WHAT ARE THE LEGAL ACTIONS CAN BE TAKEN BY THE DIRECTOR AGAINST HIM?
WHAT PENALTIES & PROSECUTION HE CAN FACE UNDER LAW?
HOW CAN HE SAVE HIMSELF FROM THIS?
prabhakar singh
(Expert) 19 February 2015
Okay!Mam you are his friend but who are you to company?
This is open forum and company people may also seek advice in disguise or may read answers to act for their own good and that shall be fatal for the health of your friend.
Better suggest him to personally visit a lawyer .
Kumar Doab
(Expert) 19 February 2015
Employee should never fake anything.
The amount was Peanuts.
If bills were not produced even then the amount is payable although it might be taxable.
Post separation it would be difficult for the employer.
It might not be part of salary but CTC.
Him being at responsible position must have attained some handle on employer .He may apply such handle.
Being a senior employee he must be aware what are' Hot Buttons' and how to press these.
If he is unable to handle the matter on his own he may approach his lawyer and his lawyer would know how to handle.
rashisharma
(Querist) 19 February 2015
Dear Sir
I am not associated with the company.
I am pursuing law , so My friend asked me to help him on this issue.
Regards
Kumar Doab
(Expert) 19 February 2015
Take him to a senior lawyer.
Ask him not to speak or write anything until he has been advised by his lawyer.
Even worse cases do settle when handled properly.
Recently In Agra a frontline executive of a big healthcare company was blamed for transgression in expense reimbursement and was being pressed to resign or face termination. The Bosses wanted to replace him with another manager from another company who had better relations with bosses.......The frontline executive was privy to financial transactions with customers thru bank a/c of employees and announced that he will pass it to ................................
The whole senior team of Line managers/HR personnel/legal team were with this frontline executive in a few days and settled the matter to the satisfaction of frontline executive.....
The Director probably want that he be not employed with any other company.
Rajendra K Goyal
(Expert) 19 February 2015
Well advised, agree with the expert Kumar Doab.
ajay sethi
(Expert) 20 February 2015
if at all fraud is discovered offer to pay back Rs 8000 claimed by company to be false. do not admit that false bills were raised . it is doubtful that company will prosecute employee for Rs 8000 . .
T. Kalaiselvan, Advocate 
(Expert) 21 February 2015
You may proceed as per the advises suggested by experts especially expert Mr. Kumar Doab to liaise with a local lawyer for handling the issue when necessity arises..
rashisharma
(Querist) 26 February 2015
Whether it is a criminal case or a Civil case?
rashisharma
(Querist) 26 February 2015
Sir, my friend is looking for a good experienced lawyer in Chandigarh. Can anyone suggest someone there?
