Dear All,
In my company, employees are using company provided corporate card for online transactions. if there is any fault or mistakes done by the employee that will lead to huge loss on the transactions for which the amount has to be retrieved from the employees through deduction from their salary.
Please advise, whether i can make an agreement or bond for debiting in their salary if they have made any transactions which incurred loss to the company. whether it is legal and / or how legally we can do this.
regards
Rajesh
From India, Madras
8In my company, employees are using company provided corporate card for online transactions. if there is any fault or mistakes done by the employee that will lead to huge loss on the transactions for which the amount has to be retrieved from the employees through deduction from their salary.
Please advise, whether i can make an agreement or bond for debiting in their salary if they have made any transactions which incurred loss to the company. whether it is legal and / or how legally we can do this.
regards
Rajesh
From India, Madras
Dear Rajesh,
If any of the employees officially entrusted with card for the purpose of on-line transactions falls within the monthly salary ceiling of Rs.18000-00, the deduction for such financial loss can be effected u/s 7(2)(c) of the Payment of Wages Act,1936 and no agreement or bond is required.
In the case of employees with monthly salary of above Rs.18000-00, deduction can be effected 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 the purpose.
From India, Salem
If any of the employees officially entrusted with card for the purpose of on-line transactions falls within the monthly salary ceiling of Rs.18000-00, the deduction for such financial loss can be effected u/s 7(2)(c) of the Payment of Wages Act,1936 and no agreement or bond is required.
In the case of employees with monthly salary of above Rs.18000-00, deduction can be effected 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 the purpose.
From India, Salem
Dear Rajesh,
This is in addition to what Mr Umakanthan M has said. He has given views from legal side.
Keeping legal issues aside, I recommend you having some communication from the company side about the issues involved in usage of corporate card for online transaction. If it is not a company agreement, then it could be a letter addressed to the employee. You must have taken loan card from the employee when issued the corporate card. In the same card either you can attach the liabilities owing to the misutilisation of the card or issue a separate letter that covers the details of the card as well as the instruction 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 cause out of misjudgement.
Thanks,
Dinesh Divekar
From India, Bangalore
This is in addition to what Mr Umakanthan M has said. He has given views from legal side.
Keeping legal issues aside, I recommend you having some communication from the company side about the issues involved in usage of corporate card for online transaction. If it is not a company agreement, then it could be a letter addressed to the employee. You must have taken loan card from the employee when issued the corporate card. In the same card either you can attach the liabilities owing to the misutilisation of the card or issue a separate letter that covers the details of the card as well as the instruction 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 cause out of misjudgement.
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Friend,
the employees are using cards provided by the company for which give clear instructions, the use of card and its utilities. Are you providing these cards for personal use or for the company use, it is very clear in the rarest cases such things happen using the cards personally. Also it is very crystal clear that all the employees are not issued with such cards, the responsible person or the one who is the head/leading the marketing or the services provided for the benefit of the company. Such cards are used in the service industries like medical aids/camps, bulk sales events, trade centres etc., in other cases for tour or marketing of the products, in such cases expenses inevitable met out 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/restrictions.
Give the corporate cards to the responsible persons who knows what to do...
From India, Arcot
the employees are using cards provided by the company for which give clear instructions, the use of card and its utilities. Are you providing these cards for personal use or for the company use, it is very clear in the rarest cases such things happen using the cards personally. Also it is very crystal clear that all the employees are not issued with such cards, the responsible person or the one who is the head/leading the marketing or the services provided for the benefit of the company. Such cards are used in the service industries like medical aids/camps, bulk sales events, trade centres etc., in other cases for tour or marketing of the products, in such cases expenses inevitable met out 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/restrictions.
Give the corporate cards to the responsible persons who knows what to do...
From India, Arcot
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