Dear Seniors, If the employees who are given laptops leave the company without informing and take away the laptops with them whats steps as a HR can i take? please Suggest...
From India, Mumbai
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From India, Mumbai
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Isn't this regarded as theft and thus becomes a police matter?
Companies that provide employees with phones, computers, cars, and other items necessary to fulfill their jobs need to have proper asset management, accountability frameworks, and processes in place to safeguard those assets. None of this is rocket science.
From Australia, Melbourne
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700Companies that provide employees with phones, computers, cars, and other items necessary to fulfill their jobs need to have proper asset management, accountability frameworks, and processes in place to safeguard those assets. None of this is rocket science.
From Australia, Melbourne
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Thanks, I just joined this company yesterday, and before me, there wasn't any HR. So, a lot of cases like this have already taken place. Can you guide me on what procedures or clauses I can implement to prevent the same issues from happening in the future?
From India, Mumbai
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From India, Mumbai
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I would suggest you compile a list of the missing assets and the ex-staff members they were allocated to along with the value of the items. Present that list to management with 3 options: write off the cost, try and pursue the people to retrieve the assets, or call in the police. I suspect the police will not be interested until you have explored all other avenues to retrieve the items. If this is a long-standing issue and the chances of recovery are slim, I suggest writing it off. You may be able to get a tax advantage through write off. I do not know Indian Tax Law.
Starting NOW, put in place an asset register of all the company's equipment, particularly anything that is held by a staff member, such as a computer, mobile phone, etc. Record the name of the person, serial number of the item, value, complete description, etc. Every item should be tagged with an asset number. There are many companies around who specialize in providing suitable asset number tags or stickers. Ideally, they need to be hard to remove. Items can also be etched with an engraving pen.
I would also suggest drawing up a contract/agreement with the staff member, leaving no doubt whatsoever, that the company owns the item/s and they MUST be returned on cessation of employment.
Most importantly - DO A REGULAR ASSET REGISTER CHECK. You need to know at all times where the items are. If a person leaves the company, part of your separation process is to ensure you get back anything they have that belongs to the company. If necessary, make payment of final salary dependent on returning the items.
If a person absconds, then that is theft, and you should call the police immediately.
Hope that helps
From Australia, Melbourne
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Starting NOW, put in place an asset register of all the company's equipment, particularly anything that is held by a staff member, such as a computer, mobile phone, etc. Record the name of the person, serial number of the item, value, complete description, etc. Every item should be tagged with an asset number. There are many companies around who specialize in providing suitable asset number tags or stickers. Ideally, they need to be hard to remove. Items can also be etched with an engraving pen.
I would also suggest drawing up a contract/agreement with the staff member, leaving no doubt whatsoever, that the company owns the item/s and they MUST be returned on cessation of employment.
Most importantly - DO A REGULAR ASSET REGISTER CHECK. You need to know at all times where the items are. If a person leaves the company, part of your separation process is to ensure you get back anything they have that belongs to the company. If necessary, make payment of final salary dependent on returning the items.
If a person absconds, then that is theft, and you should call the police immediately.
Hope that helps
From Australia, Melbourne
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I just have a little doubt how to write off the cost m sorry to ask you but actually m having lil knowledge of that if you could just guide me in brief i would be really thankful to you.
From India, Mumbai
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From India, Mumbai
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Sonal,
I do not know what the tax laws are in India, so maybe one of our other members may be able to help here.
Try speaking to your finance manager or the company accountant as well.
In many countries, the tax laws allow businesses to write off losses such as this as a tax deduction.
However, I think your first step is to ascertain what is missing and unrecoverable, and then arrive at a cost. If, as you said in your original post, it is laptop computers, then the cost may be significant.
It may well be that you work out the cost, let's say it is, for argument's sake, 15,000 rupees. You prepare a report for senior management telling them that the laptops are unrecoverable and the cost to the company is 15,000 rupees. At the end of the report, your conclusion is that the company write off the cost as a loss. Let management decide how to do it. However, your report should also include the actions you are going to take to prevent such a loss from occurring in the future. You need to demonstrate to management that you are being proactive here.
From Australia, Melbourne
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I do not know what the tax laws are in India, so maybe one of our other members may be able to help here.
Try speaking to your finance manager or the company accountant as well.
In many countries, the tax laws allow businesses to write off losses such as this as a tax deduction.
However, I think your first step is to ascertain what is missing and unrecoverable, and then arrive at a cost. If, as you said in your original post, it is laptop computers, then the cost may be significant.
It may well be that you work out the cost, let's say it is, for argument's sake, 15,000 rupees. You prepare a report for senior management telling them that the laptops are unrecoverable and the cost to the company is 15,000 rupees. At the end of the report, your conclusion is that the company write off the cost as a loss. Let management decide how to do it. However, your report should also include the actions you are going to take to prevent such a loss from occurring in the future. You need to demonstrate to management that you are being proactive here.
From Australia, Melbourne
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Hi Sonal,
Here in the Philippines, most companies practice the "accountability system," meaning every employee, once employed, will be given an accountability form that needs to be filled out. If an employee decides to leave the company without proper endorsement, the company has the option to:
1. retrieve the said item/property from the ex-employee
2. deduct the amount of the said item from his back pay or last salary
3. not provide an employee certificate to him/her since he/she has a bad record
I hope this information could be helpful to you.
Thanks,
Mean1208
From Philippines, Quezon City
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Here in the Philippines, most companies practice the "accountability system," meaning every employee, once employed, will be given an accountability form that needs to be filled out. If an employee decides to leave the company without proper endorsement, the company has the option to:
1. retrieve the said item/property from the ex-employee
2. deduct the amount of the said item from his back pay or last salary
3. not provide an employee certificate to him/her since he/she has a bad record
I hope this information could be helpful to you.
Thanks,
Mean1208
From Philippines, Quezon City
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Dear Sonal,
If you want to write off the cost, you will have to pass a journal entry for the depreciated cost in consultation with the accounting department. Debit the Head of Account meant for losses and write-offs, with whatever nomenclature your accounts people would suggest, and credit to the capital head or working expenses, whatever is assigned by the accounting department for such items. Transfer the journal slip to the accounting department. The rest of the job they will look after. However, you will have to show the credit transaction in the stock register against the entry of the laptop.
From India, Delhi
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If you want to write off the cost, you will have to pass a journal entry for the depreciated cost in consultation with the accounting department. Debit the Head of Account meant for losses and write-offs, with whatever nomenclature your accounts people would suggest, and credit to the capital head or working expenses, whatever is assigned by the accounting department for such items. Transfer the journal slip to the accounting department. The rest of the job they will look after. However, you will have to show the credit transaction in the stock register against the entry of the laptop.
From India, Delhi
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Discuss with your finance chief about this. They will guide. On your own as a new comer, you cannot do anything. Deva
From India, Madras
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From India, Madras
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Dear All,
In my opinion, setting off is the last option when the damage/loss of an instrument is not at all recoverable. But why opt for this option? You can control this by adding a clause in the appointment letter stating that any damage to the laptop is the employee's responsibility.
Therefore, I suggest that at the time of issuing a laptop to any employee, you need to ensure proper documentation is done. In the letter, you can clearly mention that any damage or internal information shared with a client or business competitor will result in strict legal action being taken, including the possibility of a penalty.
This approach will automatically put pressure on the employee to handle the laptop with care. In my company, we have a checklist for laptops where we document the configuration details and any other hardware issued with the laptop. When we retrieve the laptop, we cross-check it against the checklist. If everything is in order, we provide clearance; otherwise, we deduct the required amount from the employee's Full and Final settlement. This documentation is signed by the employee and respective authorities.
From India, Pune
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In my opinion, setting off is the last option when the damage/loss of an instrument is not at all recoverable. But why opt for this option? You can control this by adding a clause in the appointment letter stating that any damage to the laptop is the employee's responsibility.
Therefore, I suggest that at the time of issuing a laptop to any employee, you need to ensure proper documentation is done. In the letter, you can clearly mention that any damage or internal information shared with a client or business competitor will result in strict legal action being taken, including the possibility of a penalty.
This approach will automatically put pressure on the employee to handle the laptop with care. In my company, we have a checklist for laptops where we document the configuration details and any other hardware issued with the laptop. When we retrieve the laptop, we cross-check it against the checklist. If everything is in order, we provide clearance; otherwise, we deduct the required amount from the employee's Full and Final settlement. This documentation is signed by the employee and respective authorities.
From India, Pune
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