Is It Compulsory to Conduct Domestic Inquiry?

An employer may conduct an internal investigation known as a domestic inquiry to look into an employee's behaviour at work and determine whether the worker has engaged in misconduct. Domestic inquiry is a procedure that gives the accused employee a chance to respond to allegations against them.

Is it compulsory for employers to conduct a domestic inquiry?

According to the Employment Act of 1955, the employer must thoroughly investigate whether an employee has engaged in misconduct before dismissing the employee or imposing any significant punitive measures on the employee.

Is there a specific way to conduct a domestic inquiry?

Section 14(1) of the Employment Act does not define or specify what constitutes a "due inquiry" or how they should conduct such an inquiry. However, it does not imply that the employer must conduct an official domestic inquiry.

What is important is that the employer conducts a fair investigation and that the worker is granted a fair hearing or a chance to be heard before being found guilty or not guilty of the alleged offence.

What happens when a worker lodges an unfair dismissal claim against the employer for not conducting a domestic inquiry?

According to the court, if the employer conducted a defective domestic inquiry or failed to hold it, the Industrial Court will run a new proceeding instead.

How to conduct a domestic inquiry

Here are the fundamental steps in conducting a domestic inquiry:

1. The employer must first issue the show cause letter

It's critical to be specific and clear when describing the employee's alleged misconduct. A letter detailing the offence in question, along with the date, time, location, and broken rules or regulations.

2. The employer must respond to the letter

The employer should request the employee to give their answer in writing as to why the employer should not take disciplinary action and respond to the show cause letter within the specified timeframe.

They should not punish the employee if the explanation is acceptable. Yet, if the employee does not respond or if the reply is deemed unacceptable, the employer can either:

Issue a domestic inquiry notice if they feel the allegations are severe enough, or
Take disciplinary action.

3. The employer should then issue a domestic inquiry notice

The domestic inquiry should be disclosed to the employee with adequate and reasonable notice so that they have time to prepare a defence.

The following information should be included in the domestic inquiry notice:

The specific charge that consists of the offence's type, time, date, and location;
The domestic inquiry details, such as the date, time and place of the domestic inquiry; and
Inform the worker of their rights to bring witnesses or supporting evidence (if any).

4. Suspension

The employer can issue the suspension with the show cause letter or before the inquiry, pending additional investigation of the misconduct allegation.

The maximum suspension period is at most two weeks with half wages. But, the employer must pay the remaining salaries if the employee is innocent.

5. The employer must appoint the domestic inquiry panel

The panel must be made up of individuals without involvement in the case, either directly or indirectly. Board members should be more senior than the accused employee and, if possible, come from various departments. The panel members shouldn't have prior knowledge of the allegations against the accused employee and shouldn't have been involved in the inquiry.

6. The domestic inquiry hearing process

The prosecution will start first and must establish a case against the accused employee by supplying eyewitnesses with firsthand knowledge of the incident and supporting evidence.
Then, the alleged employee is free to question (cross-examine) each witness regarding the evidence they have provided.
The accused employee will then be invited to enter their defence or to present their side of the story. They could supply eyewitnesses and written proof to support their claims. The prosecutor will cross-examine the alleged employee and any witnesses they call, and the chairman will oversee the proceedings and write up the evidence.
Following the hearing, a discussion will be held to examine the testimony from both parties.
The panel's conclusions and recommendations will then be presented to management for consideration by the chairman.

The recommended actions for guilty employees under domestic inquiry

The decision of management typically falls into one of three categories:

Dismissing the employee without notice; or
Downgrading the employee; or
It is imposing less severe punishment deemed appropriate and just—for instance, two weeks of suspension with half wages.

What can employees do if unsatisfied with the domestic inquiry's decision?

Given that the domestic inquiry is an entirely internal process, the employee's ability to challenge the ruling will depend on the policies and procedures of the employer.

According to Section 20 of the Industrial Relations Act of 1967, an employee may file a complaint for unfair dismissal if they believe they were fired unfairly due to the findings of the domestic inquiry.

Should the employer allow the employee to be legally represented during the domestic inquiry?

Whether the employee may have legal representation during the domestic inquiry proceedings rests with the employer.

Typically, the employer won't permit outside legal counsel because the investigation is intended to be domestic without any outside parties involved.

Can the employer terminate the employee immediately in a domestic inquiry?

When an employee's misconduct is so severe that the employer is justified in terminating them immediately, summary dismissal (termination without notice or payment of salary in place of notice) is permitted.

Misconduct that qualifies for a summary dismissal includes the following:

Committing a crime while at work, such as theft or fraud
Offering or accepting bribes
Drunkenness at work puts people at risk of harm or death

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