In this edition, we explore a disciplinary hearing involving a long-serving, high-ranking employee who used his position to solicit money from subordinates, recruit staff into a side venture, and mislead junior employees about business dealings. The case raises serious questions around manipulation, power imbalance, and the cost of misplaced trust.
The Background
The employee, a regional team leader with over a decade of service, was highly regarded and deeply embedded in the organisation. He had assisted in launching new branches (even internationally) and mentored junior staff.
But beneath the surface, he was slowly building something else: his own business—and using company time, resources, and staff to do it.
Over time, it became clear that:
- He had encouraged at least two junior employees to leave and join him.
- He received substantial payments (over several months) from a young administrative assistant—who believed she was investing in his new business.
- He failed to declare this conflict of interest, breaching both his contract and the company’s code of conduct.
A Pattern of Exploitation
The most striking part of the case involved a series of financial transfers made by the junior employee. These included:
- Repeated requests for loans, framed as temporary help until his salary or external payments came through.
- A large, lump-sum payment sold as a business investment in a new venture he called “Ears on the Move.”
- False assurances about product purchases, profit-sharing, and future involvement.
When asked for repayment, he delivered second-hand hearing aids as “proof of investment”—devices that later turned out to belong to company clients and had little to no resale value.
The Manipulation Playbook
This wasn’t an isolated act of bad judgment. It was a calculated pattern:
- He used his authority to gain trust and legitimacy.
- He preyed on emotional connection, promising loyalty and partnership.
- He relied on complexity—financial jargon, vague future promises—to obscure accountability.
- And when caught, he redirected blame, suggesting he had been given informal approval to start a business.
The Hearing Outcome
The disciplinary chairperson found the employee guilty on multiple charges:
- Gross misconduct and dishonesty
- Breach of company policy (offering/accepting money from staff)
- Conflict of interest (recruiting employees and soliciting investment)
- Misuse of company property (undisclosed retention of second-hand hearing aids)
The evidence showed not only policy breaches but a fundamental breakdown of trust—especially for someone in a leadership role.
The employee was summarily dismissed.
Lessons for Employers
1. Charisma ≠ Compliance
Just because someone is trusted doesn’t mean they are trustworthy. Long service is not a shield from scrutiny.
2. Clear boundaries are essential
All businesses should have clear rules around employee-to-employee loans, side businesses, and the handling of client property.
3. Protect junior staff
Power dynamics matter. Junior employees often feel unable to say no, even when uncomfortable. Safeguards must exist.
4. Watch for red flags
Frequent cash requests, sudden new “ventures,” and off-platform communication (like WhatsApp) can all signal deeper issues.
5. Investigate properly
This case was only uncovered after a separate suspension prompted deeper investigation. Take employee concerns seriously and follow leads thoroughly.
How We Can Help
We assist employers with:
- Conducting disciplinary hearings with independence and legal fairness
- Developing codes of conduct and conflict-of-interest protocols
- Training staff on workplace ethics and professional boundaries
- Auditing employee-client transactions and outside interest disclosures
Need help tightening your internal controls? Contact us at [[email protected]]
COMING NEXT in “On the Case”
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