Juan Dela Cruz is a former member of this District formerly assigned at ABCD. Said employee was transferred to ZXC.
Does capital Said infront of the sentence correct? it seems to me it' wrong
It is grammatically correct, although not used very often. You could translate it loosely as
"The employee that was mentioned just now."
It's a fairly formal usage, probably more common in legal language, news or government reports, and less common in everyday conversation.