Misconduct: Meaning, Examples & Disciplinary Process
Updated 4 min read
Definition
Misconduct is an act or omission by an employee that breaks the employer’s rules of conduct and can lead to disciplinary action.
Listen to this article
What Is Misconduct?
Calling something misconduct starts a process; it does not settle the outcome.
Misconduct is an act or omission by an employee that breaks the employer’s rules of conduct and can lead to disciplinary action. In India, the Model Standing Orders, 2026, made under section 29 of the Industrial Relations Code, 2020, list what counts and set out the enquiry that must come before any penalty, where 300 or more workers are employed.
Common Examples of Misconduct
The standing orders give a list of 23 acts. Some of the ones employers meet most:
- theft, fraud or dishonesty about the employer’s business or property
- wilful insubordination, or disobeying a lawful or reasonable order
- habitual late attendance, or habitual absence without leave
- drunkenness or fighting at the place of work while on duty
- habitual neglect of work, sleeping on duty, or slowing down work
- giving false information about age or qualifications when hired
- claiming a false bill for reimbursement
A cashier short-changing the till, a guard asleep on a night shift and an operator drunk on the line all fall within it. The list says misconduct “shall include” these, so it is not closed. The superior’s order behind a disobedience charge should normally be in writing.
How Disciplinary Action Works
The standing orders, which our standing orders format follows, set a fixed order of steps:
- Suspension, if needed. The employer may suspend the employee while the enquiry runs. Written reasons must follow within a week.
- Subsistence allowance. A suspended employee is paid 50% of wages last drawn for the first 90 days, provided they take no job elsewhere.
- The enquiry. The employee can attend in person, or bring a co-worker or a union office-bearer. It should usually finish within 90 days.
- The penalty. Only on a finding of guilt, after hearing the employee on the proposed penalty: dismissal, suspension, a fine, stoppage of an annual increment or reduction in rank.
- The appeal. The employee has 21 days to appeal, and the appellate authority decides within 15.
Misconduct vs Poor Performance
| Aspect | Misconduct | Poor performance |
|---|---|---|
| Nature | A breach of conduct rules | Work below the standard |
| Intent | Often wilful | Usually not |
| Route | Charge, enquiry, penalty | Feedback, training, review |
| Example | Faking a bill | Missing a target |
The line blurs at neglect. Missing targets is a performance issue, but habitual neglect of work is on the misconduct list.
Misconduct Example
A private hospital in Kolkata (an example) with 650 staff suspends a pharmacy assistant on 4 March 2026. She is accused of claiming a false travel bill of ₹3,480.
| Date | Step |
|---|---|
| 4 March | Suspended; 50% allowance |
| 9 March | Written reasons given |
| 22 May | Enquiry ends: guilty |
| 25 May | One increment stopped |
Note: this is an invented example for illustration only. The hospital, the employee, the amount and the dates are made up.
Because the penalty is not dismissal, she is treated as on duty for the suspension. She receives the wages she would have earned, minus the subsistence allowance already paid, and has 21 days to appeal.
Keeping a Disciplinary Case Fair
A case can fall apart on the paperwork even when the facts are clear. The standing orders ask you to weigh how serious the act was and the employee’s past record. The employee must also get a copy of the punishment order.
Below 300 workers, the appointment letter, company policy and your state’s shops and establishments law usually set the rules. A written charge, a chance to reply and a dated record are still the safer habit, and a warning letter often comes first for a minor lapse.
For lateness and absence charges, the dates are the evidence. Attendo (formerly Petpooja Payroll) is a complete workforce management system for every kind of business. Its Attendance Master report shows each employee’s first punch, last punch and day status, which gives an enquiry dated facts instead of recollection. To see that record for your own team, explore Attendo.