Greetings Of The Day To All!!!! Can a company deposit salary in an employees account & then withdraw the same in a day or two?? Request you to please throw some light on this.
From India, Mumbai
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1From India, Mumbai
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Hi, Yes u can do that if u hav paid extra ammount, basically valid reason is reqd. Regards, Gurleen
From India, New Delhi
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From India, New Delhi
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Hi, I guess once it is deposited then company can’t do anything. If the transaction is yet to be proceed then they can stop the transaction.
From India, Pune
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From India, Pune
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If you have a salary account, then, as per my information, there is a clause in the account opening form which allows the company to withdraw the credits/deposits made in that account during a specific time frame (most probably the last 3 months).
Rakesh
From India, Hisar
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Rakesh
From India, Hisar
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Hi,
This situation arises when an extra amount (incentive, conveyance) is deposited into a particular account or when another person's salary is credited to a single account. However, when they transfer the funds back, a valid reason must be provided.
You can verify this with the payroll or commercial department of your organization.
From India, Madras
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This situation arises when an extra amount (incentive, conveyance) is deposited into a particular account or when another person's salary is credited to a single account. However, when they transfer the funds back, a valid reason must be provided.
You can verify this with the payroll or commercial department of your organization.
From India, Madras
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Dear All,
This can very much be done. In case if a person's salary has been processed and he resigns around that time and has a notice period shortfall or is falling short of leave balance, then the company can withdraw the salary. Alternatively, as mentioned by others, if an extra amount has been deposited by mistake. Of course, my guess is it can only be done if one has a salary account, and the time period with most private banks, I guess, is 2 working days.
From India, Pune
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This can very much be done. In case if a person's salary has been processed and he resigns around that time and has a notice period shortfall or is falling short of leave balance, then the company can withdraw the salary. Alternatively, as mentioned by others, if an extra amount has been deposited by mistake. Of course, my guess is it can only be done if one has a salary account, and the time period with most private banks, I guess, is 2 working days.
From India, Pune
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Hi All,
It is very much possible in the case of salary accounts with private banks. All you need to do is provide an indemnity agreement on a stamp paper signed by the authorized signatory. With that indemnity, we shall freeze the salary account of any employee and reverse any transaction you have made. The above transaction holds good if the account has sufficient funds to reverse. If the employee has withdrawn any amount in the meantime, then there is absolutely no possibility of a reversal transaction. For further details, contact your corporate salary account relationship manager.
Regards,
Gokul Nathan Subramanian
From India, Madras
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It is very much possible in the case of salary accounts with private banks. All you need to do is provide an indemnity agreement on a stamp paper signed by the authorized signatory. With that indemnity, we shall freeze the salary account of any employee and reverse any transaction you have made. The above transaction holds good if the account has sufficient funds to reverse. If the employee has withdrawn any amount in the meantime, then there is absolutely no possibility of a reversal transaction. For further details, contact your corporate salary account relationship manager.
Regards,
Gokul Nathan Subramanian
From India, Madras
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Dear friend, It is not possible for a company to withdraw the salary from the account of the employee. Sanjeet
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Once salary, or for that matter any amount, is credited to a bank account, it cannot be reversed or withdrawn by the bank. If any mistake has occurred and the employer is able to convince the bank suitably, only then, after obtaining indemnity and all necessary documentation, the bank may consider reversing the entry.
This is done as an exception and not as a routine practice. The bank may accept such requests from the employer to maintain good relations.
An account holder can object to such reversals, and the bank may have a tough time responding to the account holder.
Thanks & Regards
Greetings of the day to all!!!! Can a company deposit salary into an employee's account and then withdraw the same within a day or two? Request you to please shed some light on this.
From India, Pune
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This is done as an exception and not as a routine practice. The bank may accept such requests from the employer to maintain good relations.
An account holder can object to such reversals, and the bank may have a tough time responding to the account holder.
Thanks & Regards
Greetings of the day to all!!!! Can a company deposit salary into an employee's account and then withdraw the same within a day or two? Request you to please shed some light on this.
From India, Pune
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Dear Gokul,
Gokul is absolutely correct. If that person has withdrawn the money from the account, we won't be able to reverse the transaction. However, if there is a sufficient amount in the account, we can process a reversal. If you freeze the account after the withdrawal, it will serve no purpose.
Thank you.
From India, Bangalore
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Gokul is absolutely correct. If that person has withdrawn the money from the account, we won't be able to reverse the transaction. However, if there is a sufficient amount in the account, we can process a reversal. If you freeze the account after the withdrawal, it will serve no purpose.
Thank you.
From India, Bangalore
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Curlin_4,
I don't think the bank will allow a third party to withdraw money on behalf of another person, even if the same amount has already been credited. However, any excess amount can be recovered from the salary of the next month. What do you think?
Ashok
From India, New Delhi
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I don't think the bank will allow a third party to withdraw money on behalf of another person, even if the same amount has already been credited. However, any excess amount can be recovered from the salary of the next month. What do you think?
Ashok
From India, New Delhi
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Greetings Of The Day To All!!!!
Can a company deposit salary in an employee's account and then withdraw the same in a day or two?? Request you to please throw some light on this.
Can a company deposit in an employee's account then withdraw the same in a day or two? This is a matter of serious concern to those dealing in pay and compensation. In my opinion, once a salary is deposited in an employee's account, it could not be withdrawn by the company unless and until any authorization in this regard is duly given by the concerned employee.
R. N. Pandey (Vadodara)
From India, Vadodara
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Can a company deposit salary in an employee's account and then withdraw the same in a day or two?? Request you to please throw some light on this.
Can a company deposit in an employee's account then withdraw the same in a day or two? This is a matter of serious concern to those dealing in pay and compensation. In my opinion, once a salary is deposited in an employee's account, it could not be withdrawn by the company unless and until any authorization in this regard is duly given by the concerned employee.
R. N. Pandey (Vadodara)
From India, Vadodara
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Once the company deposits the money into employees account after that the organisation dont have the power to withdraw money from the account.
From India, Madras
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From India, Madras
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I have seen the reversal of transactions when a salary account gets credited with an excess amount. However, in all such cases, the provision for reversals is included in the joining papers of the employee. So individuals may first want to go through the documents that they might have hurriedly signed while boarding on their organizations.
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It can be done....i m having experience with 3 banks....as Corporate relationship Banker...there is a clause...bt the employee must have balance in his salary account...
From India
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From India
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Dear Peer,
If the variable amount is credited or debited by either the company or the bank, they can access your account for correction at any point in time.
For example, if your actual salary is 20000 but the credited amount is 22000, it means they will debit the excess amount that was credited due to a manual or technical mistake.
If the employee has made the account rupt, it means they will enter the amount as a negative value (-2000) in your account. When you receive your next month's salary or any deposit, the amount will be automatically debited from your account.
Regards,
Nelson S.
Chennai.
From India, Bangalore
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If the variable amount is credited or debited by either the company or the bank, they can access your account for correction at any point in time.
For example, if your actual salary is 20000 but the credited amount is 22000, it means they will debit the excess amount that was credited due to a manual or technical mistake.
If the employee has made the account rupt, it means they will enter the amount as a negative value (-2000) in your account. When you receive your next month's salary or any deposit, the amount will be automatically debited from your account.
Regards,
Nelson S.
Chennai.
From India, Bangalore
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Dear Peer,
If the variable amount is credited or debited either by the company or the bank, they can access the account for correction at any point of time without giving notice to the employee.
For example, if your actual salary is 20000 but the credited amount is 22000, it means they will debit the excess amount which was credited by manual or technical mistake. If the employee has made the account corrupt, it means they will enter the amount as a negative value (-2000) in your account. At the point you receive the next month's salary or any deposit, the amount will be automatically debited from your account.
Therefore, it is the responsibility of the employee to check the salary account quite often to avoid these sorts of problems.
Regards,
Nelson S.
Chennai.
From India, Bangalore
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If the variable amount is credited or debited either by the company or the bank, they can access the account for correction at any point of time without giving notice to the employee.
For example, if your actual salary is 20000 but the credited amount is 22000, it means they will debit the excess amount which was credited by manual or technical mistake. If the employee has made the account corrupt, it means they will enter the amount as a negative value (-2000) in your account. At the point you receive the next month's salary or any deposit, the amount will be automatically debited from your account.
Therefore, it is the responsibility of the employee to check the salary account quite often to avoid these sorts of problems.
Regards,
Nelson S.
Chennai.
From India, Bangalore
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Dear without consent of account holder no body can oprate the other account only they can request for stop paymet before withdrawal of amount . Manu
From India
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From India
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absoultly right.....employer can witdrawan excess amout which is paid by mistcally with giving stisfactory reason to employees in this regards
From India, Mumbai
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From India, Mumbai
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As an HR practitioner, we encounter numerous HR issues that HR has to solve. In the case of the ongoing discussion about whether management could request the bank to credit an amount to the company, yes, it can, subject to being done via a letter of request by the authorized signatory of the company. It is normally done when it was wrongly credited, calculated, or the particular staff had absconded from employment. In fact, a lot of employees usually escape during the end of the month after salary is credited to their account. That's my experience.
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I'm not sure of the laws governing labor in your country, but in SA, you cannot, even if it is a good reason. What you can do if you have, say for example, deposited more than you should have, is to call the employee in and tell them of the mistake. Inform them that you will be recovering the overpaid amount. Also, that goes a long way in keeping good employee relations in your company.
From South Africa, Johannesburg
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From South Africa, Johannesburg
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No, the employer can't though there is a "hidden" clause permitting the employer to withdraw the deposited "money", it can't be exercised unless you are given an opportunity. If the employer fails, a suit for damages will sustain.
From India, Tiruchchirappalli
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From India, Tiruchchirappalli
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Every client of a financial institution is bound by regulations. Be it a salary or any other type of account, any withdrawal or debit that is not statutory must be in line with the account opening clauses.
In case of an error by the employer, the employee has to be notified for him/her to trigger a reversal procedure because he/she is the only person authorized to proceed with such transactions. Moreover, if the error is made by the bank, the operation can be reversed immediately or within 24 hours; otherwise, the employee will have to be notified and his approval sought. This is how it works in Cameroon.
From Cameroon
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In case of an error by the employer, the employee has to be notified for him/her to trigger a reversal procedure because he/she is the only person authorized to proceed with such transactions. Moreover, if the error is made by the bank, the operation can be reversed immediately or within 24 hours; otherwise, the employee will have to be notified and his approval sought. This is how it works in Cameroon.
From Cameroon
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Hi,
Once, my company deposited my manager's salary into my account (we share the same name). I realized the significant difference and chose not to withdraw it. Within a day or two, they reversed the transaction and deposited my correct salary.
The company has the right to withdraw the salary if the amount deposited is incorrect or too high. I don't think this should be made into an issue. I have also experienced situations where banks have wrongly credited my account and promptly corrected it.
Human errors can happen, but they can and should be rectified.
Thank you.
From India, Madras
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Once, my company deposited my manager's salary into my account (we share the same name). I realized the significant difference and chose not to withdraw it. Within a day or two, they reversed the transaction and deposited my correct salary.
The company has the right to withdraw the salary if the amount deposited is incorrect or too high. I don't think this should be made into an issue. I have also experienced situations where banks have wrongly credited my account and promptly corrected it.
Human errors can happen, but they can and should be rectified.
Thank you.
From India, Madras
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Hi Everybody,
It can only happen if the salary account is opened by the company. To cite an example, you have an SB account in a Public sector bank where the company credits your salary through RTGS. If the company has not introduced you, it cannot happen. However, if the company has introduced you to a private bank and has a rapport with the bank, then it can be done. I think I am correct in this regard.
From India, Madras
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It can only happen if the salary account is opened by the company. To cite an example, you have an SB account in a Public sector bank where the company credits your salary through RTGS. If the company has not introduced you, it cannot happen. However, if the company has introduced you to a private bank and has a rapport with the bank, then it can be done. I think I am correct in this regard.
From India, Madras
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Yes, It is possible, if at all any extra salary is posted to u r account. but it should be intimated to the employee and proper reason should be given for reversal of the salary.
From India, Bangalore
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From India, Bangalore
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Hi! it is not possible by company to withdraw an amount which hv deposited in yr account. regards, mukundan
From India, Ahmadabad
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From India, Ahmadabad
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Dear, Its not possible to reversal salary from employee account without employee permision. rgds Anil Chauhan
From India, Delhi
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From India, Delhi
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Dear Ele,
Good Afternoon! :-)
In the normal course, a company can deposit into an employee's account but can't withdraw the same. It can be withdrawn only when it is mistakenly credited by the bank. All deposits are subject to supporting documentation available with it. If the company deposits an additional amount into an employee's account, then the company can claim it directly from the employee.
From India, New Delhi
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Good Afternoon! :-)
In the normal course, a company can deposit into an employee's account but can't withdraw the same. It can be withdrawn only when it is mistakenly credited by the bank. All deposits are subject to supporting documentation available with it. If the company deposits an additional amount into an employee's account, then the company can claim it directly from the employee.
From India, New Delhi
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Can salary be deposited and then withdrawn by the company?
Amount once credited to the account of an employee cannot be withdrawn without the permission of the said employee. If, by mistake or due to an error of the employer, such a thing happens, the law does not permit the employer to take arbitrary action. In the Contract Act, there is a specific provision to deal with this sort of situation. Section 72 of the Indian Contract Act states that payments or delivery made under mistake or coercion must be made good or be returned. In Sri Shiba Prasad Singh v. Maharaja Srish Chandra Nandi, it was made clear that money paid under a mistake is recoverable whether the mistake is of fact or of law but by lawful means.
Some of my friends may ask why we should not recover the amount directly from the account of the employee. When can we do so? Yes, you can recover the amount from the account of the employee if you have a good relationship with the bank, but it can create legal issues for the employer and the bank. To have a bird's eye view of the issue, we have to understand a few points:
1. There are three parties in this case, i.e., the Employer, Employee, and Bank.
2. What was the mistake due to which the wrong amount was credited to the employee's account and by whom was this mistake made?
3. Is there any clause in the agreement which stipulates that the employer or bank can recover the amount back from the account of the employee if the amount was credited by mistake?
The employer and employee have a master and servant relationship. At the same time, the bank and the employee have a customer (consumer) relationship. So, we have to take into consideration not only employment law but also customer, contract, and banking law.
If the mistake was on the part of the banker, then he can recover the amount back from the customer (employee) because in a standard contract, there is always a clause that gives the right to the banker to recover back an amount that was credited by mistake. But I am not sure whether there is any clause in the contract (salary account agreement) that gives the right to the employer to recover back the amount from the employee. If there is no such clause, then the employer legally cannot recover back the amount from the account of the employee, whether it was credited by mistake or not.
If we assume there is some sort of agreement like this, then also how can the bank recover back the amount on the recommendation of the employer because the mistake was on the part of the employer, not the bank. So, on this ground, the bank cannot recover the amount from the customer's account.
Now, coming to the nature of the mistake, if the mistake is like in place of crediting Rs 1000 to the employee's account, the employer had credited Rs 1200, then the employer can adjust the excess amount with the next month's salary (if possible).
For more information: White Eagle: Can Salary be deposited and then withdrawn by the company?
From India, Hyderabad
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Amount once credited to the account of an employee cannot be withdrawn without the permission of the said employee. If, by mistake or due to an error of the employer, such a thing happens, the law does not permit the employer to take arbitrary action. In the Contract Act, there is a specific provision to deal with this sort of situation. Section 72 of the Indian Contract Act states that payments or delivery made under mistake or coercion must be made good or be returned. In Sri Shiba Prasad Singh v. Maharaja Srish Chandra Nandi, it was made clear that money paid under a mistake is recoverable whether the mistake is of fact or of law but by lawful means.
Some of my friends may ask why we should not recover the amount directly from the account of the employee. When can we do so? Yes, you can recover the amount from the account of the employee if you have a good relationship with the bank, but it can create legal issues for the employer and the bank. To have a bird's eye view of the issue, we have to understand a few points:
1. There are three parties in this case, i.e., the Employer, Employee, and Bank.
2. What was the mistake due to which the wrong amount was credited to the employee's account and by whom was this mistake made?
3. Is there any clause in the agreement which stipulates that the employer or bank can recover the amount back from the account of the employee if the amount was credited by mistake?
The employer and employee have a master and servant relationship. At the same time, the bank and the employee have a customer (consumer) relationship. So, we have to take into consideration not only employment law but also customer, contract, and banking law.
If the mistake was on the part of the banker, then he can recover the amount back from the customer (employee) because in a standard contract, there is always a clause that gives the right to the banker to recover back an amount that was credited by mistake. But I am not sure whether there is any clause in the contract (salary account agreement) that gives the right to the employer to recover back the amount from the employee. If there is no such clause, then the employer legally cannot recover back the amount from the account of the employee, whether it was credited by mistake or not.
If we assume there is some sort of agreement like this, then also how can the bank recover back the amount on the recommendation of the employer because the mistake was on the part of the employer, not the bank. So, on this ground, the bank cannot recover the amount from the customer's account.
Now, coming to the nature of the mistake, if the mistake is like in place of crediting Rs 1000 to the employee's account, the employer had credited Rs 1200, then the employer can adjust the excess amount with the next month's salary (if possible).
For more information: White Eagle: Can Salary be deposited and then withdrawn by the company?
From India, Hyderabad
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