Hello All,
Just to give little insight, I work in an SME as HR. We had an employee, who was asked to leave because of the discipline issues though he was good at work. He was asked to leave immediately.
Now he possesses the company's laptop & has changed the login details for an account which was handled by him. We have not relieved his salary yet. I had a word with him on phone but he said that I'll hand it over but first we need to handover his salary to him. Also, his salary is not even 1/4th of the cost.
As per my knowledge there's no specific document that was signed by him but we do have the Employment Agreement(Joining Letter) which was signed by him which mentions that about the information of the project/ work confidentatlity but nothing on inventory possession.
Company has bills & all the details regarding it. Can you please suggest what can be done?
Looking forward for the reply at earliest.

From India, Chandigarh
Dear Axita,

Allotment of company's assets to an employee without proper documentation is nonsensical. How will you prove that the laptop is in employee's custody? Leave aside obtaining "Loan Card" from the employee, I doubt whether you had prepared, "Non-returnable Gate Pass" at security also.

In this forum, several times the query has come on allotment of company's property to the employees. I have given my replies. Anyway, click the following link:

https://www.citehr.com/452041-compan...ml#post2029477

Since the employee has been removed suddenly, withholding laptop could be his way of settling score with the management. After all he is wise enough to calculate the depreciated value of the laptop and leftover salary amount. Former is bigger than latter.

Send letter to his last known address. If he does not return the laptop then I do not find any action other than "write off" action.

As a lesson, you may start maintaining the "Fixed Asset Register" at least now.

Thanks,

Dinesh V Divekar

From India, Bangalore
It is mentioned, you have got the bills and all details - documentation with regard to serial no. of the asset or id etc, I suppose.- of the laptop. you can call him once again, probably record the conversation, and then write to him to return the assets within specified date, and threatening with legal action etc. Or else you may straight away file FIR for theft- because the asset was taken away by him without permission. you have documents to prove that it belongs to company. when the employee takes away any material without any authorisation it amounts to theft. Not taking strict action on this may prompt other employees also resorting to similar acts in future. Proper documentation as suggested Mr. Dinesh V Divekar is a must follow.
From India, Bangalore
As you have mentioned that the employee has changed the login details of the account, check with your IT Dept, and I believe the IT can easily revert the login.
Secondly, as you have said that his salary is due to him, prepare his salary and call him to office and say that he has to sign the salary settlement and to bring the laptop with him. Thus, if he arrives to office let me sign the clearance, return his laptop and receive his due salary.
If the above doesn't work, then you may take legal action.

From Saudi Arabia, Riyadh
Dear Ghouse,
You have given your suggestion that is fine but it is too naive. The person who takes company's laptop is a perfect scheming person. Whether naiveties that you have suggested will work against him that remains to be seen.
Thanks,
DVD
As you have mentioned that the employee has changed the login details of the account, check with your IT Dept, and I believe the IT can easily revert the login.
Secondly, as you have said that his salary is due to him, prepare his salary and call him to office and say that he has to sign the salary settlement and to bring the laptop with him. Thus, if he arrives to office let me sign the clearance, return his laptop and receive his due salary.
If the above doesn't work, then you may take legal action.

From India, Bangalore
Dear Mr. Dinesh,
There was a procedure of getting the Inventory document signed but this all happened due to the absence of the HR as I just joined few weeks before. If it's about proving it can be done as company does have the bills & the Inventory Serial No. Won't that be enough to prove? It's almost clear case of possessing somebody's property by force.
In the mean time, I have dropped an official mail to the person stating that please leave the office laptop & after that only your dues would be cleared.. Thanks for your valuable suggestions & guide me further as and when required.
Many Thanks,
Axita

From India, Chandigarh
As rightly said by VK Sajan, you can file a FIR against the employee for unauthorized possession of Company Asset i.e. Laptop. Beforehand wait for the reply for the official letter you have send. If you are not getting any response send him/her a reminder stating that the company will be forced to take legal action against you.
From India, Ahmadabad
Thank you all for your valuable comments. It helped me to an extent to finding a way out to the problem.
Just one thing more here, if you can suggest me if I should mention something related to the inventory in Employment Agreement only? If yes, what & how specifically should I mention.

From India, Chandigarh
Dear Axita,

Your No 1 problem is that you did not obtain loan card from the employee. Not only you should obtain loan card, but for every quarter, employee should renew this loan card as well.

No need to mention in the appointment letter as such about returning of company's assets at the time of exit. At the time of entry into the organisation, we issue the appointment letter. At the time of entry into the organisation, why we should talk about what employee should do at the time of separation?

What about standing orders? Have you made standing orders for your company? Employee is liable to return the company's assets, this clause can be included in the standing orders. This will strengthen your case more than inclusion of the clause in the appointment letter.

The incident well highlights the glaring loopholes in your organisation. Employee has been allotted company assets without obtaining any loan card, why this fact was not captured in the audit? Neither you have "Fixed Asset Register". Why your finance department did not bring to this notice earlier? Or is it that audit did not happen at all?

In light of this incident, I recommend you telling to your management get the third-party audit done of all departments. Who knows there could be more skeletons in the closets. Instead of waiting for these skeletons to tumble out on one fine day, it is important to be proactive and find out where these are!

If your company allots laptop without proper loan card to the employee then your purchase department will have far more anomalies that is far sure. Please do not dismiss my argument as visceral.

Thanks,

DVD

From India, Bangalore
possession of company's asset is recoverable. You can lodge a criminal complaint on theft of laptop, & that will be recovered.
But if he content you through court, the company have to pay huge compensation, since he was good worker. However if he was sent out under dismissal order by following appropriate regulations such as complaint upon him, issue of memo, enquiry, written statement, only then the company will be in safe zone. So invite him, on hand recover laptop & surrender his pay

From India, Chennai
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