Hi, I had an issue come up in a class discussion. There is an employee who left the company without serving a notice period. Before resigning due to a communication issue, they were paid extra Casual Leaves, after which they resigned. As a company, how can we recover the overpaid money?
Regards
From India, Mumbai
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Regards
From India, Mumbai
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Dear Rohit Kumbhar,
If the employee has abandoned the duties, then did you send her an official letter to join the duties; otherwise, disciplinary action will be initiated against her.
Send two warning letters to join the duties. If the employee does not join, then you may order the domestic enquiry.
If the employee does not depose before the enquiry, then the management may take *ex parte* decision and award a suitable punishment which could be termination of the services.
Before abandoning the duties, the employee must have served a few days in that month. I don't think that you have paid the salary for the period. Since the employee availed of the excess leave than the eligibility, you can recover those many days' salary. This recovery can be made from the salary outstanding against her. For the recovery of payment for the excess leave, obtain sanction from the competent authority.
Correspondence related to this incident may be preserved in the employee file. As a cross-reference, additional copies may be preserved somewhere else too.
Notwithstanding the recovery process, the question arises as to why the employee was sanctioned leave beyond the eligibility. Why this lapse occurred and how to prevent such a lapse is a lesson to be learned from this incident.
Thanks,
Dinesh Divekar
From India, Bangalore
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8218If the employee has abandoned the duties, then did you send her an official letter to join the duties; otherwise, disciplinary action will be initiated against her.
Send two warning letters to join the duties. If the employee does not join, then you may order the domestic enquiry.
If the employee does not depose before the enquiry, then the management may take *ex parte* decision and award a suitable punishment which could be termination of the services.
Before abandoning the duties, the employee must have served a few days in that month. I don't think that you have paid the salary for the period. Since the employee availed of the excess leave than the eligibility, you can recover those many days' salary. This recovery can be made from the salary outstanding against her. For the recovery of payment for the excess leave, obtain sanction from the competent authority.
Correspondence related to this incident may be preserved in the employee file. As a cross-reference, additional copies may be preserved somewhere else too.
Notwithstanding the recovery process, the question arises as to why the employee was sanctioned leave beyond the eligibility. Why this lapse occurred and how to prevent such a lapse is a lesson to be learned from this incident.
Thanks,
Dinesh Divekar
From India, Bangalore
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There is no payment for Casual leave as it is not an encashable leave. The very name casual leave indicates that it is allowed for the purpose of a sudden requirement. The unavailed CL lapses after the availment period is over, and it is also not carried forward. It is quite possible that the employee may have availed CL in excess of entitlement thus far.
Any overpayment on any account can be recovered from the wages or the final dues payable to the employee. There is a specific provision in the Payment of Wages Act 1936 (Section 7 (2) (f) that recovery of excess payment from the wages payable to an employee.
From India, Mumbai
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Any overpayment on any account can be recovered from the wages or the final dues payable to the employee. There is a specific provision in the Payment of Wages Act 1936 (Section 7 (2) (f) that recovery of excess payment from the wages payable to an employee.
From India, Mumbai
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Dear Sir,
The employee has already left the company. Due to a communication barrier within the management, the employee received extra paid casual leave. Is there any way to recover the money for those extra paid casual leaves from the employee, considering that they have already joined another company?
From India, Mumbai
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The employee has already left the company. Due to a communication barrier within the management, the employee received extra paid casual leave. Is there any way to recover the money for those extra paid casual leaves from the employee, considering that they have already joined another company?
From India, Mumbai
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Dear Rohit Kumbhar,
Do you read the replies given by other members? I have provided a clear response. Why can't you go through paragraphs 4 and 5 of my post? What is the logic of asking the same question again?
Thanks,
Dinesh Divekar
From India, Bangalore
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Do you read the replies given by other members? I have provided a clear response. Why can't you go through paragraphs 4 and 5 of my post? What is the logic of asking the same question again?
Thanks,
Dinesh Divekar
From India, Bangalore
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Casual leave is not encashable. First of all, I do not understand how your company encashes casual leave. Recovering the amount depends on the relationship the company had with the employee. If the ex-employee refuses to repay, you will have to write off the amount.
From India, Bengaluru
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From India, Bengaluru
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