Hi everyone,
I have joined a company as HR Manager and have to deal with a situation where a former employee has misused and broken the laptop that was issued to him. We want to try and recover dues from him as the damage and the financial loss to the company is significant. Can anyone suggest what kind of approach is good to take in this situation.? Will you also share if you have experienced similar situations in the past and suggest a format for the termination letter to be issued to him.
Thanks in advance for your help.

From United Kingdom, Leeds
Dear sxr041,

Few questions emerge from your post. These are as below:

a) Do you have policy on "Allotment of Company Assets to Employees" well in place? It appears it is not. Else you would not have come up with this query. First you need to make this policy. You may refer the following post to make this policy:


b) If the company allotted some assets to the employees, then are these recorded in "Fixed Asset Register" (FAR)? If you do not have this register, then you need to prepare this register. You may click the following link to know how to make FAR:


c) Whether you have policy on allotment of company assets or not, whether you have FAR or not, during the separation of the employee from the organisation, why the recovery process was not raised? Why this employee was given clearance from Stores or by Admin Department?

d) By the way, do you have adequate evidence of the allotment laptop to the employee? Did the employee sign the loan card? Do you have evidence stating that the laptop was returned in the damaged condition? If yes, then you may conduct domestic enquiry for the damage to the company assets. After depreciation, the residual value may be recovered from the employee.

If the employee is already separated completed, if his all the dues are cleared then possibly he may not depose before the enquiry. Under such circumstances, you need to conduct the second domestic enquiry and find out whose lapse it was to allow the employee to go scot free. Suitable punishment may be awarded to this manager/employee. Further obtain the condemnation certificate from the competent authority and declare the assets as obsolete.

Last comments: - Damage to the laptop is not a matter of "indiscipline" as such. This is a admin issue and it needs to be handled accordingly. It becomes matter of discipline provided employee concerned refused to pay the damage charges or the employee who has cleared him without proper recovery process.


Dinesh Divekar

From India, Bangalore
Dear Dinesh,
Many thanks for your message. The company does not have the policies you mentioned. I just joined them last week and have to implement a whole lot of policies and processes including those for asset management and indiscipline. Thanks so much for your advice I will use the points you have given while framing the new policies.
Kind regards

From United Kingdom, Leeds

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