Sir, our sales staff do door-to-door collection of EMI and deposit the same with the branch on the same day. They have a TAB instrument for the collection of EMI and disbursement of loans. Since the instrument is costly, they keep a nominal amount as a security deposit for the same with us.
If the staff misappropriates the money and absconds, can we adjust the amount from the security deposit and the salary payable to him? What will be the recourse if the misappropriation comes to light after he has left the organization?
From India, Mumbai
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If the staff misappropriates the money and absconds, can we adjust the amount from the security deposit and the salary payable to him? What will be the recourse if the misappropriation comes to light after he has left the organization?
From India, Mumbai
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Adjusting company money from the security deposit and salary payable is the recourse the company has to ultimately take. If misappropriation of company funds comes to light, proceed and initiate disciplinary proceedings. Conduct a domestic inquiry and award punishment; until such time, suspend all amounts payable to him by the company.
If the asset value of the company is higher than the amount payable to the employee (security deposit, salaries, payment of allowances, etc.), what will you do? Once the inquiry is completed and you obtain a report from the Enquiry Officer, you can proceed to initiate legal action or file a suit in the appropriate Court of Law for the recovery of the amount with penal interest.
From India, Aizawl
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699If the asset value of the company is higher than the amount payable to the employee (security deposit, salaries, payment of allowances, etc.), what will you do? Once the inquiry is completed and you obtain a report from the Enquiry Officer, you can proceed to initiate legal action or file a suit in the appropriate Court of Law for the recovery of the amount with penal interest.
From India, Aizawl
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Dear ANONYMOUS Friend,
I agree with P. Radhakrishnan Nair. You cannot adjust the amount, so-called by you as misappropriated from the security kept and salary due, unilaterally. You say that the staff has misappropriated, but you have to prove it. You have to give an opportunity to the staff to be heard by following the principle of natural justice.
From India, Mumbai
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I agree with P. Radhakrishnan Nair. You cannot adjust the amount, so-called by you as misappropriated from the security kept and salary due, unilaterally. You say that the staff has misappropriated, but you have to prove it. You have to give an opportunity to the staff to be heard by following the principle of natural justice.
From India, Mumbai
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Sir,
Our audit team has conducted an inquiry and has provided a detailed report on the same, outlining the amount misappropriated. Subsequently, we discussed this matter in our disciplinary committee meeting. However, the employee has absconded, and we are therefore unable to recover the misappropriated amount from them.
In our industry, it is not uncommon for employees to leave their jobs without notice or serving the required notice period. Given the current situation, what recourse do we have now?
Thank you.
From India, Mumbai
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Our audit team has conducted an inquiry and has provided a detailed report on the same, outlining the amount misappropriated. Subsequently, we discussed this matter in our disciplinary committee meeting. However, the employee has absconded, and we are therefore unable to recover the misappropriated amount from them.
In our industry, it is not uncommon for employees to leave their jobs without notice or serving the required notice period. Given the current situation, what recourse do we have now?
Thank you.
From India, Mumbai
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Enquiries by the Audit Committee, Disciplinary Committee, etc., are only internal inquiries. It is good to collect their findings/report and document it. However, you need to initiate a domestic inquiry by appointing an Inquiry Officer (a registered legal practitioner) and seek his report as well. There are a few procedures to follow before initiating a domestic inquiry.
If the delinquent employee does not turn up to participate in the inquiry procedure, you can hold the inquiry ex-parte (this decision is to be made by the Inquiry Officer).
Thank you.
From India, Aizawl
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If the delinquent employee does not turn up to participate in the inquiry procedure, you can hold the inquiry ex-parte (this decision is to be made by the Inquiry Officer).
Thank you.
From India, Aizawl
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Dear ANONYMOUS Friend,
It seems to me you need to hire a legal adviser to deal with this issue rather than taking advice from such forums. Our friend Nair advised you correctly, and you should follow that.
It appears you are from Mumbai. If you are willing to hire the services of a legal adviser, you can reach out via email at akhilbhartiya4u@gmail.com.
From India, Mumbai
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It seems to me you need to hire a legal adviser to deal with this issue rather than taking advice from such forums. Our friend Nair advised you correctly, and you should follow that.
It appears you are from Mumbai. If you are willing to hire the services of a legal adviser, you can reach out via email at akhilbhartiya4u@gmail.com.
From India, Mumbai
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Dear Procedure of domestic enquiry is entirely different and the same has to be conducted in accordance with settled principles of natural justice. Fir detailed advice / opinion, you can contact me.
From India, Faridabad
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From India, Faridabad
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Audit (Tallying, investigating, etc.) is different and can never be equated with the disciplinary inquiry consisting of prima facie preliminary inquiry and/or final domestic inquiry.
Since you allege that the said employee is absconding with the instrument issued to him by his employer, you must proceed with issuing him a proper show-cause/charge sheet alleging theft of company's property (the instrument) and post the same charge sheet in a closed envelope, by Regd Post AD at his present postal address & permanent home address as per company's records, asking him to explain why disciplinary action including punishment should not be taken for his misconduct. You may also inform that an FIR would be lodged against him for the said theft, hold a domestic inquiry before punishment is awarded.
The practices or precedence you quoted are not the law or above the law; hence, proceed as prescribed in the laws. Make haste slowly.
Kritarth Consulting, 18.7.2020
From India, Delhi
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Since you allege that the said employee is absconding with the instrument issued to him by his employer, you must proceed with issuing him a proper show-cause/charge sheet alleging theft of company's property (the instrument) and post the same charge sheet in a closed envelope, by Regd Post AD at his present postal address & permanent home address as per company's records, asking him to explain why disciplinary action including punishment should not be taken for his misconduct. You may also inform that an FIR would be lodged against him for the said theft, hold a domestic inquiry before punishment is awarded.
The practices or precedence you quoted are not the law or above the law; hence, proceed as prescribed in the laws. Make haste slowly.
Kritarth Consulting, 18.7.2020
From India, Delhi
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