Termination justified due to loss of confidence

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In Johnson & Johnson Ltd v Gajendra Singh Rawat, Delhi High Court recently upheld the dismissal of an employee who had stolen confidential documents and threatened to circulate them to government departments and others.

termination-justified-due-to-loss-of-confidenceRawat, an employee of Johnson & Johnson, was terminated for misconduct on account of theft of privileged and confidential documents from the office premises and threatening to circulate them to the outside agencies. After the failure of conciliation proceedings, the case was referred to a labour court, which set aside Rawat’s termination on the ground that the termination was in violation of principles of natural justice as no enquiry was held and Rawat was not given an opportunity to be heard. The labour court awarded him a little over ₹1 million (US$15,000) with 18% interest as compensation.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at [email protected] or [email protected] Readers should not act on the basis of this information without seeking professional legal advice.