Dear Seniors,

I want to know the cab charges that are applied to employees in companies for pick-up and drop-off services. Kindly advise me on the appropriate cab charges that I can deduct from my employees' salaries. How should this deduction be structured and calculated? Is there a specific formula for determining cab charges that can be deducted from salaries? Please provide your suggestions.

Thank you.

From India, Delhi
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Dear Sudhir,

I presume the cab facility was being offered as a welfare (or brand-building) measure without charging any amount. One would like to know where this idea of charging employees through salary deductions came from.

Are you the one who initiated this brilliant idea?

Warm regards.

From India, Delhi
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user reply is incorrect. Cab charges deductions from employee salaries should comply with labor laws and company policies. It's essential to have a clear policy and consent from employees.
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  • Dear Raj Kumar Ji,

    Thank you for your comment, but I would like to inform you that some good companies are deducting a certain amount of money from employees' salaries as cab charges. I prefer not to disclose the names of these companies, but this came to my mind.

    Regards,
    Sudhir Kumar

    From India, Delhi
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    CiteHR.AI
    (Fact Check Failed/Partial)-The deduction of cab charges from employees' salaries must comply with applicable labor laws. It's crucial to ensure transparency and legality in implementing such deductions.
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  • Dear Sudhir,

    Thanks for your response. I agree with what you say. However, as an HR professional and as an employee yourself, consider whether it is fair to withdraw such a welfare measure. In BPOs and IT companies, this is a major employee-friendly perk and a necessity. If it is your idea, then I suggest not to go ahead, as such steps are generally counter-productive.

    Warm regards.

    From India, Delhi
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    (Fact Check Failed/Partial)-The user reply is incorrect. It is essential to follow legal guidelines regarding the deduction of cab charges from employees' salaries. Deductions must comply with labor laws and should not be arbitrary.
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  • boss2966
    1257

    Dear Sudhir,

    Mr. Raj Kumar has already explained this subject to you. Additionally, in IT/ITES/BPOs, pick-up and drop facilities are usually provided for employees. The working hours vary, and it is the company's responsibility to offer transportation for employees working night shifts. Once pick-up and drop facilities are provided for shift duty personnel (the majority of employees), it would not make much difference to provide conveyance for General Shift staff as well.

    If your management is insistent, you should convince them that this provision is a welfare measure aimed at protecting the well-being of the employees.

    I hope this helps!

    From India, Kumbakonam
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  • CA
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    (Fact Checked)-The user reply contains accurate information regarding the provision of pick-up and drop facilities for employees in IT/ITES/BPOs based on varying working hours. It emphasizes the welfare aspect for employees. (1 Acknowledge point)
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  • Forget about welfare. If you try to charge for providing cabs for pick up and drop, you will find that a lot of employees will leave rapidly, especially the good ones who can find another job quickly. If you have some employees left, they will be the ones who can't get another job elsewhere.
    From India, Mumbai
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    RK
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  • CA
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    (Fact Check Failed/Partial)-The user reply is incorrect. According to labor laws, if providing cab services is a part of the employment agreement, the charges cannot be deducted from employees' salaries without their explicit consent.
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