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Are HRM practices, procedural justice and ethical behavior important source of employees misconduct? What are the relationships among HRM practices, procedural justice, ethical behavior and Employee Misconduct in this context? To answer these questions, we i) develop a theoretical framework describing the factors that contribute to Employee Misconduct, ii) test the proposed model using Factor Analysis , multiple Regression Analysis techniques and others on both public and private sector employees sample data collected via hand and web survey, and iii) consider the implication of the model. The results of the study show that HRM practices have a strong relationship with procedural justice. Three of HRM practices, training and development, performance management and promotion and compensation and incentives have strong impacts on Employee Misconduct. Interestingly, procedural justice mediates the relationship between HRM practices and Employee Misconduct whereas unethical behavior of self and co-worker moderate the relationship between procedural justice and Employee Misconduct.