Dear all
One of our contract employe damage some company property for intentionally. can we deduct the damages amount from his salary or not ? In future we have facing any legal problem for the same?
Awaiting your reply

From India, Rajkot
[email protected]

SR MANAGER HR & Administration
Dear Rajesh If the employee damage the property with intention report to your police station immediately and file a suit against him Lakshminaryana
From India, Hyderabad
Dear Rajesh,
We can deduct from his contractors payment only provided that you (Principle employer) have executed a valid contract agreement with contractor. That contract agreement should covers the clause about "damages, if any ,caused by the employees of the contractor will be deducted from the contractors payment".
Pl keep in mind , we can n't deduct the damaged amount straight away to the contract workmen.
D Pannerselvam

From India, coimbatore

Freelancer in HR &Indirect taxes for services indusrty.
The recovery against damage cannot be made from salary as such, unless there is acceptance from the perticular employee towards the damage done.Since it is a matter under contract, you can raise a debit note against contrator and retrieve the compensation against damage, while in turn it will be contractor who will recover the same from that employee.This will only be possible if you have a valid contract with suitable indimnity clause.

From India, Vadodara

Hi sir, first of all please check the contract agreement, there should be definitely a clause providing for such damages, just in case where the said clause is not available in the agreement, you need to do the following:
step1: assess the extant of damage in terms of money and in terms of time hours lost.
step2: get this statement cross verified by the external auditor, under a certification of the total amount.
step3: issue a letter (under registered post acknowledgement due RPAD)intimating the nature and extant of damage to the contractor
step4: if the value is high start deducting in installments, else recover the entire amount in the immediate next bill.
step5: issue a letter to the contractor enlisting the future course of action at such incidents.
setp6: you can also proceed against the said contractor and file a police complaint under the provisions of IPC \"willful negligence act such as to damage or destruction of the property and endangering the co employees peaceful w

From India, Hyderabad

Private Consultant on labour laws
Dear Rajesh dodia,
Your action for deducting the damages amount from salary of contract labour will be basically a blunder and retrograde step.By doing so, it may be proved that he was your employee & once he becomes offensive, he can harm you in many ways.Since the particular employee was deployed by the contractor, who is his immediate employer,you can certainly ask the contractor to recover the damages from him and pay the amount to the employer.Do not deal directly with him.You can ask the contractor not to deploy him for the work/job relating to your establishment in future.
BS Kalsi
Member since Aug 2011

From India, Mumbai
Vipul badhik

HR Manager
I agree to Panerselvam,
he is absolutely right..
it depends on your contract, you should have mentioned the part of damages in contract.
but you can deduct that penalty or damage with the acceptance letter from that person,
I think there will not be any legal problem, it is mentioned in minimum wages act, 1948.
but remember that you are required to take sign from that person or any 2 witnesses.

From India, Rajkot

Asso.Prof.(Commerce & Management)
Dear Rajesh,
The person who damaged your property is not directly employed by your firm and hence his salary is not paid by you directly, if so where is the question of deducting from his salary arises ? However ask the Labour contractor to rectify the damage at his own cost lest the equivalent can be recovered from his contract bill after taking his consent in writing instead of directly interacting with the contract employee who is not under your direct supervision.

From India, Bangalore

Hi Rajesh,
It doesn't matter that the damage has been done intentionally or unintentionally but you can not force the person to compensate the damage by deducting the amount from salary. However, if he is agree for the same then only you can go further to deduct money from his salary.
Also, as he was the contract based worker, you need to follow contract agreement and see what mentioned for in case of damages. If in case it is not clearly mentioned then discuss the issue with the contractor.
Moreover, if the damage is small and not a major then may be you can avoid creating it a big issue and leave it by giving him a strict warning that if something like happens the same then it will not be tolerable and you will take strict action against him.

From India, Lucknow
I think the above information is sufficient to you because all above communication says that your not directly liable to deduct the amount from contract employees salary it's deduct from contractor's Bill and contractor will be decide recover or not
From India, Pune

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