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
Acknowledge(0)
Amend(0)
3From South Africa, Johannesburg
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Tiruchchirappalli
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi! it is not possible by company to withdraw an amount which hv deposited in yr account. regards, mukundan
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
Dear, Its not possible to reversal salary from employee account without employee permision. rgds Anil Chauhan
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.