How do you investigate an employee suspected of padding car repair costs?

Hi!  Our company driver has been handling car repairs and our staff have been noticing that the repairs seem to be over-priced.  We started having someone else handle the repairs and the cost became lower, sometimes half of the quote of our driver or even less.  For example, one time our driver went out to check how much the body repair should be and he said one shop quoted 27,000 and the other 8,500.  When the new person had it repaired it was only 4,500.  He also said that the car needed the shocks and wheel bearings changed at 10,000 but when we had it repaired, it turned out to be just the wheel bearings at 4,000.  It seems that he has been making money on car repairs for years, but the driver is a permanent employee.  What would be the due process for investigation or audit to confirm if he was really padding the costs?  Also, if we are somehow able to prove his dishonesty, what would be the process to terminate him?

Firstly, go and verify the price directly with the repair shop where he took your car/s for repairs. Go directly to the manager of the shop and compare your receipts as well as the cost of labor and parts.

If there is confirmation as to the existence of price 'padding', the correct process is...
1. Issue a Show-cause memo/Notice to Explain and give him at 2 or 5 days to explain his side.
2. If within 2 or 5 days he submits an explanation letter, issue a Notice of Administrative Hearing and schedule the same after at least 5 days (this is to give the employee ample time to prepare his defense). If after the 2 or 5-day period to explain had lapsed and the employee failed to submit an explanation letter, issue the Admin Hearing Notice (still considering the 5-day period).
3. Proceed with the hearing. (If the employee failed to appear, schedule another Hearing and give at least another 5 days). If there is need to set another Hearing, schedule the same but still consider the 5-day period.
4. After the Admin Hearing... decide.
5. Issue the Notice of Dismissal personally AND thru Registered Mail or thru Registered Mail alone.

Curious... why "2 or 5 days" and not a fixed period?

Hi HRDude! Thank you so much for the advice. This is very helpful!

Happy holidays!

HrDude wrote:Firstly, go and verify the price directly with the repair shop where he took your car/s for repairs. Go directly to the manager of the shop and compare your receipts as well as the cost of labor and parts.

If there is confirmation as to the existence of price 'padding', the correct process is...
1. Issue a Show-cause memo/Notice to Explain and give him at 2 or 5 days to explain his side.
2. If within 2 or 5 days he submits an explanation letter, issue a Notice of Administrative Hearing and schedule the same after at least 5 days (this is to give the employee ample time to prepare his defense). If after the 2 or 5-day period to explain had lapsed and the employee failed to submit an explanation letter, issue the Admin Hearing Notice (still considering the 5-day period).
3. Proceed with the hearing. (If the employee failed to appear, schedule another Hearing and give at least another 5 days). If there is need to set another Hearing, schedule the same but still consider the 5-day period.
4. After the Admin Hearing... decide.
5. Issue the Notice of Dismissal personally AND thru Registered Mail or thru Registered Mail alone.

Some companies give 2 days. Some companies give 5 days. These periods are the 'commonly' used periods for the process. I'm not saying these are the ONLY periods but these are the commonly used periods.

emgee wrote:Hi!  Our company driver has been handling car repairs and our staff have been noticing that the repairs seem to be over-priced.  We started having someone else handle the repairs and the cost became lower, sometimes half of the quote of our driver or even less.  For example, one time our driver went out to check how much the body repair should be and he said one shop quoted 27,000 and the other 8,500.  When the new person had it repaired it was only 4,500.  He also said that the car needed the shocks and wheel bearings changed at 10,000 but when we had it repaired, it turned out to be just the wheel bearings at 4,000.  It seems that he has been making money on car repairs for years, but the driver is a permanent employee.  What would be the due process for investigation or audit to confirm if he was really padding the costs?  Also, if we are somehow able to prove his dishonesty, what would be the process to terminate him?

Just to be on the safe side, as this is a terminable offense - and any failure to comply with due process may endanger your case and decision -

To clarify, the following should be considered in terminating the services of employees:

(1) The first written notice to be served on the employees should contain the specific causes or grounds for termination against them, and a directive that the employees are given the opportunity to submit their written explanation within a reasonable period. Reasonable opportunity under the Omnibus Rules means every kind of assistance that management must accord to the employees to enable them to prepare adequately for their defense. This should be construed as a period of at least five (5) calendar days from receipt of the notice to give the employees an opportunity to study the accusation against them, consult a union official or lawyer, gather data and evidence, and decide on the defenses they will raise against the complaint. Moreover, in order to enable the employees to intelligently prepare their explanation and defenses, the notice should contain a detailed narration of the facts and circumstances that will serve as basis for the charge against the employees. A general description of the charge will not suffice. Lastly, the notice should specifically mention which company rules, if any, are violated and/or which among the grounds under Art. 282 is being charged against the employees.