A workman/driver while he driving a tractor he damaged to company\'s property. Damaged cost is Rs.2500-00. The cost of damaged is to be recovered from the workman. How to deduct? from his salary/wages. What is the process to deduct fine or any formalities to be made?

25th December 2012 From India, Bijapur

Dinesh Divekar
Business Mentor, Consultant And Trainer
Industrial Relations And Labour Laws
Working As Regional Manager- Projects Labour
Labour & Industrial Laws
Industrial Labour Laws In Kerala
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Director Of Company
Consultant & G.m.
Retired From Air India
Bk Mohanty
Head Of People Excellence
Sr.manager (pa & Ir)
+4 Others

Dear Ramesh,
Conduct the enquiry and assess the cost of damage (which you say is Rs 2,500/-). You can impose fine on the employee but you cannot recover the entire cost of damage from the employee. The amount recovered from employee has to be deposited in Karnataka State Labour Welfare Fund (KSLWF). You cannot keep the amount with yourself.
it may be noted that Supreme Court and various high courts have given rulings on recovering the entire amount from the employee.
In the recent past, famous news channel "Times Now" had to pay Rs 100 crore as cost of defamation. This was due to the small mistake of their news team. It was not possible to recover even 1% of the amount from the employees. Obviously they had to forego these charges.
Dinesh V Divekar
25th December 2012 From India, Bangalore
In my view, Best thing is to conduct the domestic inquiry and conclude by saying "taking a lenient view that this driver caused this for the first time and hence he shall be left with strong warning not to repeat this, on the condition he shall repair the damage at his cost"
25th December 2012 From India, Bangalore
Dear Ramesh

During the course of work; some damage is inevitable, in any business, industry or manufacturing activity. What is important is the record of that person to ascertain whether it was done intentionally or during the course of work.

A damage of about Rs. 2500 is neglegible for a company and such damages are always taken into cosideration.

However, it would be a sizable portion of the workman's salary. Good companies do not recover such INCIDENTAL DAMAGES from the employees.

I shudder to think if management behaves in such Shylockian ways to recover it from the employees. I have worked in industries where the cost of equipments and even some losses run into several lakhs of rupees.

A workman would have to pawn all his coming generations as SLAVES to the management should it think of recovering such damages from workmen.

As an easy example; think of a driver driving a Rolls Royce which meets with an accident and it is damaged; or a pilot flying a Boeing 787 and by mistake it overshoots the runway and gets damaged. In both these example the employees will take several generations to repay the damages !!

Warm regards.
26th December 2012 From India, Delhi
punishment will not correct a man. if he is exceptional in his profession, the issue may be considered leniently. a nominal amount and descend on promotion panel is reasonable. make sure it do not lead to a psychological horror.
26th December 2012 From India, Bangalore
Dear Ramesh
I appreciate the comments of some seniors where they are suggesting not to recover. Being an industry some damage / accident or mishaps are bound to happen. The decision taking of the company's management seemed to have gone biased and trying to teach the worker some lesson through this recovery blah blah ... But all that does not work in real world
In place of this you can give japanese style punishments - say not allowed to drive for 6 months or a 3 month ban on regular activity and doing some non routine work at the place where the damage happened. This way Japanese teach the culprit to respect the exisitence of the surrounding at others place and instill a sense of responsiobility of all his on duty actions. Training and learning is another way you can keep on doing to improve the responsibility showcase of the employees - not a single one.
Empathy while taking disciplanary actions is good idea - as some times these are required but
26th December 2012 From India, Mumbai
Dear Ramesh,
First of all we shall understand the moto of Penalty either it is recovery or lesson teaching for avoiding recurrence. Commonly one can understand that Rs 2,500/- is not huge amount that employer can not bear, So the part remains 'lesson teaching for avoiding recurrence.' which can be confession in common meeting, Advisory Note, Charge Sheet etc.
Try any source as mentioned in Disciplinary Actions for misconduct Under Model Standing Orders
26th December 2012 From India, Mumbai
As our members commented/opined, review the situation whether the driver had acted in negligent manner or otherwise. If the accident/damage had occured in beyond the driver's control then take a lenient view.
If accident/damage occured in violation of rules or in negligent driving, recovery to certain extent as this should be message for other violaters.
26th December 2012 From India, Tiruchchirappalli
You can levy penalty for a damage caused by 'intent', but it is very difficult to prove the same. A written warning seems enough in such cases. Why waste time & effort in meaningless investigations, I am sure there are some important business issues in your company which deserve an investment in time.
26th December 2012 From India, Delhi
Recently our company lost around 15 Lakhs due to negligency of some workers. We have levied a fine of Rs 500-1000 only to showcouse their mistake and as a warning for them to be careful in future.
26th December 2012 From India, Bangalore

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