Many employment forms ask applicants to disclose pending criminal cases or past convictions. If an employee fails to disclose a criminal case and the employer later discovers this, can the employee be immediately dismissed? Or does the employer have to conduct an enquiry first? The Hon'ble Supreme Court has made it clear: termination is not automatic. An enquiry must be conducted, and the employer must record specific findings before passing any termination order.

What the Court Held

The disclosure of criminal antecedents by an employee — even after joining service — does not automatically result in dismissal. Before passing a termination order, the employer must:

  1. Conduct a departmental enquiry
  2. Determine whether the suppression of criminal antecedents was deliberate and willful
  3. Record a specific finding that the continuation of the employee in service is unfeasible given the nature of the job and the nature of the criminal case

Termination is a consequence of the enquiry — not a consequence that automatically flows from the fact of suppression.

The Two-Pronged Test

The Court laid down a two-pronged test that employers must satisfy:

The Key Principle

Termination is not an automatic consequence of the disclosure of criminal antecedents. The specific case of the employee must be considered, and the employer must apply its mind before arriving at a decision. A blanket termination without enquiry and findings is not sustainable.

Practical Guidance

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If you have been dismissed solely because you did not disclose a criminal case at the time of joining — without any departmental enquiry being conducted — challenge the termination. It is not legally sustainable without an enquiry and recorded findings.

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If you are an employer who discovered an employee's non-disclosure: you must issue a show-cause notice, conduct an enquiry, examine the deliberateness of the suppression and the feasibility of continuation, and record findings before passing any termination order.

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An acquittal in a criminal case substantially weakens the ground for termination even if the case was not disclosed — since the concern about the employee's fitness is significantly reduced by an acquittal.

Case Reference
Shatrughn Yadav v. Fertilizers and Chemicals Travancore Ltd. (F.A.C.T.) and Others | Hon'ble Justice Sanjay Karol & Hon'ble Justice Augustine George Masih | August 11, 2026 | Hon'ble Supreme Court of India

Frequently Asked Questions

Questions people commonly search on this topic

Can an employer dismiss an employee for not disclosing a criminal case? +
Not automatically. The Supreme Court has held that suppression of criminal antecedents does not automatically result in dismissal. The employer must conduct an enquiry, determine whether the suppression was deliberate, and record a finding that continuation of the employee is unfeasible before passing a termination order.
Is a departmental enquiry mandatory before dismissal for criminal record suppression? +
Yes. The Supreme Court has held that an enquiry is necessary. Termination without an enquiry and recorded findings is not legally sustainable. The enquiry must examine whether the suppression was deliberate and whether the employee's continuation in the specific post is feasible.
Can an employer terminate an employee who was acquitted in a criminal case? +
An acquittal substantially weakens the ground for termination. The employer must still conduct an enquiry and record findings — but an acquittal in the criminal case significantly reduces the justification for termination on this ground.
What should I do if I was dismissed for not disclosing a criminal case? +
Challenge the termination before the appropriate authority — Labour Court, Industrial Tribunal, or if you are a government employee, the appropriate administrative/service tribunal. The Supreme Court's ruling that termination must be preceded by an enquiry and recorded findings is a strong ground for reinstatement.