In law, misconduct is wrongful, improper, or unlawful conduct motivated by premeditated or intentional purpose or by obstinate indifference to the consequences of one's acts. Misconduct can be considered an unacceptable or improper behavior, especially for a professional person. Two categories of misconduct are sexual misconduct and official misconduct. In connection with school discipline, "misconduct" is generally understood to be student behavior that is unacceptable to school officials but does not violate criminal statutes, including absenteeism, tardiness, bullying, and inappropriate language. Misconduct in the workplace generally falls under two categories. Minor misconduct is seen as unacceptable but is not a criminal offense. Gross misconduct can lead to dismissal.
"Misconduct" includes something seen as unacceptable as well as criminal offenses e.g. deceptive manipulation.
"Gross misconduct" can lead to immediate dismissal because it is serious enough and possibly criminal, e.g. stealing or sexual harassment.
Misconduct refers to an action, rather than neglecting to take action, or inaction which could be referred to as poor performance.
Examples of gross misconduct
The following may be classified as gross misconduct:
Organization and management scholars have paid much attention to the causes, forms, modes of development, and consequences of misconduct within or among organizations. They have studied different types of misconduct, such as white-collar crimes, insider trading, or deceptive accounting and, more recently, considered the development of misconduct activities between different firms, such as cartels where firms reduce competition by agreeing on production or pricing. It has then been argued that the organization of misconduct across different firms present unique challenges to conceal activities or maintain collective secret.
Financial
The failure to understand and manage ethical risks played a significant role in the financial crisis. The difference between bad business decisions and business misconduct can be hard to determine, and there is a thin line between the ethics of using only financial incentives to gauge performance and the use of holistic measures that include ethics, transparency and responsibility of stakeholders. From CEO's to traders and brokers, all-too-tempting lucrative financial incentives existed for performance in the financial industry.
The past widespread financial misconduct led to a call for financial reform. The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 to increase accountability and transparency in the financial industry and protect consumers from deceptive financial practices. Domestic inquiry A domestic inquiry typically follows a ‘show cause’ letter, which is sent to the employee requesting an explanation for the alleged misconduct. If the response is not satisfactory, the employer will move to the more formal domestic inquiry. Domestic inquiry should be carried out as soon as possible following accusations of misconduct and all activities should be formalized and recorded in full. Legally it is important than the investigation be carried out objectively – the investigating officers, for example, should be unconnected to the incident, and the employee should be given full opportunity to state their own case and present evidence in their favor. Union representatives or colleagues should be allowed to sit in during the process if the employer requests their presence, although the employee can't insist on legal representation. An employer may, on the grounds of misconduct inconsistent with the fulfillment of the express or implied conditions of his services, after due inquiry:
dismiss without notice the employee
downgrade the employee
impose any other lesser punishment as he deems just and fit, and where a punishment of suspension without wages is imposed, it shall not exceed a period of two weeks.
