Dear All,
In my company, employees are using company-provided corporate cards for online transactions. If there are any faults or mistakes made by the employees, it can lead to significant losses in the transactions, for which the amount has to be retrieved from the employees through deductions from their salaries.
Please advise on whether I can create an agreement or bond for debiting their salary if they have made any transactions that resulted in losses for the company. I am seeking guidance on the legality of this action and how we can implement it in a legal manner.
Regards,
Rajesh
From India, Madras
Acknowledge(0)
Amend(0)
8In my company, employees are using company-provided corporate cards for online transactions. If there are any faults or mistakes made by the employees, it can lead to significant losses in the transactions, for which the amount has to be retrieved from the employees through deductions from their salaries.
Please advise on whether I can create an agreement or bond for debiting their salary if they have made any transactions that resulted in losses for the company. I am seeking guidance on the legality of this action and how we can implement it in a legal manner.
Regards,
Rajesh
From India, Madras
Acknowledge(0)Amend(0)
Dear Rajesh,
If any of the employees officially entrusted with a card for the purpose of online transactions falls within the monthly salary ceiling of Rs. 18,000.00, the deduction for such financial loss can be effected under Section 7(2)(c) of the Payment of Wages Act, 1936, and no agreement or bond is required.
In the case of employees with a monthly salary above Rs. 18,000.00, deductions can be made based on the individual undertaking to that effect given in writing by them at the time of issue of the cards. My personal view is that no such agreement or bond is required for this purpose.
Thank you.
From India, Salem
Acknowledge(0)Amend(0)
If any of the employees officially entrusted with a card for the purpose of online transactions falls within the monthly salary ceiling of Rs. 18,000.00, the deduction for such financial loss can be effected under Section 7(2)(c) of the Payment of Wages Act, 1936, and no agreement or bond is required.
In the case of employees with a monthly salary above Rs. 18,000.00, deductions can be made based on the individual undertaking to that effect given in writing by them at the time of issue of the cards. My personal view is that no such agreement or bond is required for this purpose.
Thank you.
From India, Salem
Acknowledge(0)Amend(0)
Dear Rajesh,
This is in addition to what Mr. Umakanthan M has said. He has given views from the legal side. Keeping legal issues aside, I recommend you have some communication from the company side about the issues involved in the usage of the corporate card for online transactions. If it is not a company agreement, then it could be a letter addressed to the employee. You must have taken a loan card from the employee when issued the corporate card. On the same card, either you can attach the liabilities owing to the misuse of the card or issue a separate letter that covers the details of the card as well as the instructions and liabilities.
A communication from the company would help in creating psychological deterrence. This deterrence helps them to use the card judiciously and helps in obviating the problems caused by misjudgment.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
This is in addition to what Mr. Umakanthan M has said. He has given views from the legal side. Keeping legal issues aside, I recommend you have some communication from the company side about the issues involved in the usage of the corporate card for online transactions. If it is not a company agreement, then it could be a letter addressed to the employee. You must have taken a loan card from the employee when issued the corporate card. On the same card, either you can attach the liabilities owing to the misuse of the card or issue a separate letter that covers the details of the card as well as the instructions and liabilities.
A communication from the company would help in creating psychological deterrence. This deterrence helps them to use the card judiciously and helps in obviating the problems caused by misjudgment.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Friend,
The employees are using cards provided by the company for which clear instructions are given regarding the use of the card and its utilities. Are you providing these cards for personal use or for company use? It is very clear that in rare cases such things happen when using the cards personally. Also, it is crystal clear that not all employees are issued with such cards; it is the responsible person or the individual leading the marketing or services provided for the benefit of the company. Such cards are used in service industries like medical aids/camps, bulk sales events, trade centers, etc. In other cases, for tours or marketing of the products, in such instances, expenses are inevitably met by the leading person, thus there is no question of misuse of the cards. Be clear in the happenings rather than giving a lot of instructions or restrictions. Give corporate cards to the responsible persons who know what to do.
Please let me know if you need any further assistance.
Best regards,
[Your Name]
From India, Arcot
Acknowledge(0)Amend(0)
The employees are using cards provided by the company for which clear instructions are given regarding the use of the card and its utilities. Are you providing these cards for personal use or for company use? It is very clear that in rare cases such things happen when using the cards personally. Also, it is crystal clear that not all employees are issued with such cards; it is the responsible person or the individual leading the marketing or services provided for the benefit of the company. Such cards are used in service industries like medical aids/camps, bulk sales events, trade centers, etc. In other cases, for tours or marketing of the products, in such instances, expenses are inevitably met by the leading person, thus there is no question of misuse of the cards. Be clear in the happenings rather than giving a lot of instructions or restrictions. Give corporate cards to the responsible persons who know what to do.
Please let me know if you need any further assistance.
Best regards,
[Your Name]
From India, Arcot
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Salary Break up - After deduction.xls
Responsibilitie s of person who is responsible for deduction of TDS on salary.docx