Once the employer employee relationship is ceased by either way of resignation or termination the bindings between them is gone. However, in what form the employee owes money? Is it through some misappropriation or loan? If through loan, what is the nature of such loan? Depending on all the details advice on recovery can be provided.
Please check my blog at www.labourlawhub.com
From India, Kolkata
243Please check my blog at www.labourlawhub.com
From India, Kolkata
""Is it through some misappropriation or loan?""
If documents duly acknowledged show alone is outstanding from ex employee,company retains legal right to recover the same.
In case of misappropriated money,company can start legal process to recover the money.
Relationship of employee-employer may cease,but burden of refunding money still remains with employee(ex)
It could be a clerical mistake that cessation of employee-employer reaction may have been initiated from employer side.
From India, Pune
If documents duly acknowledged show alone is outstanding from ex employee,company retains legal right to recover the same.
In case of misappropriated money,company can start legal process to recover the money.
Relationship of employee-employer may cease,but burden of refunding money still remains with employee(ex)
It could be a clerical mistake that cessation of employee-employer reaction may have been initiated from employer side.
From India, Pune
Ritesh Sir,
The employee had taken a loan from the company. And the company had given it as salary advance. However, the full amount is yet to be recovered. Can I still recover the loan even after 5 months?
The employee had taken a loan from the company. And the company had given it as salary advance. However, the full amount is yet to be recovered. Can I still recover the loan even after 5 months?
It is not a case of resignation, where you could have resorted even to a legal action for the outstanding dues of the employee. It is a matter of termination by the company. Thoughtless termination can rebounce like your instance. You could first have ensured recovery of dues from the employee before terminating him. Once termination is affected, you should forget about your dues against him. You may have to write off the amount to treat that as loss to the company. However, if the company is not agreeable to sustain this loss, the balance amount of advance can be made recoverable from the executive responsible for termination without ensuring recovery of the dues from the employee.
From India, Delhi
From India, Delhi
Psdhingra sir thank you for your clarification.
Just to get a clearer understanding, could you refer me to the Act and Sub Sections where I can refer with reference to such termination?
It's a learning curve for a start up like ours.
Just to get a clearer understanding, could you refer me to the Act and Sub Sections where I can refer with reference to such termination?
It's a learning curve for a start up like ours.
If you are at start up stage, you could also have stated in what capacity you have been posted in HR and termiated the employee. If you are a qualified HR executive, you should well have known that the industrial employment is not regulated merely by one Act of law. With particular reference to your initial query, you may better go through the terms & conditions of appointment of the employee, certified standing orders, and the HR Manual. Relevance of learning is aimless and reading between the lines, if not with specific reference to the complete background of the case, including the real cause of termination, which you have nowhere mentioned.
From India, Delhi
From India, Delhi
@Mraj78
You are contradicting yourself. A loan and salary advance are different. Since you are sticking to the point of 'loan' what documentary evidences you have against the employee that you have provided him loan? Depending on nature of such documents, further proceedings and advice can be initiated.
Legally, you can recover the 'loan' through money suit which can be time consuming and expensive too.
Check my blog at www.labourlawhub.com
From India, Kolkata
You are contradicting yourself. A loan and salary advance are different. Since you are sticking to the point of 'loan' what documentary evidences you have against the employee that you have provided him loan? Depending on nature of such documents, further proceedings and advice can be initiated.
Legally, you can recover the 'loan' through money suit which can be time consuming and expensive too.
Check my blog at www.labourlawhub.com
From India, Kolkata
As rightly said by Mr. Dhingra it would have been recovered at the time of termination, what if the employee states that he/she is unemployed and does not have any source of income for his daily needs. The court of law will be at his/her side.
From India, Ahmadabad
From India, Ahmadabad
The employee was terminated by the CEO.
A salary advance was given as a cheque.
The employee did not sign any documents.
The employee was terminated because his subordinates were not happy under him and were totally frustrated.
The CEO now wants to recover the money.
A months notice or a month's basic salary was supposed to be given if termination was to be effected during probation. The CEO did not honor this and terminated the employee.
I have been asked by the CEO to get in touch with the ex employee and initiate recovery. I just want to be sure if the can initiate recovery.
I am new to this company @psdhingra sir.
Thank you
A salary advance was given as a cheque.
The employee did not sign any documents.
The employee was terminated because his subordinates were not happy under him and were totally frustrated.
The CEO now wants to recover the money.
A months notice or a month's basic salary was supposed to be given if termination was to be effected during probation. The CEO did not honor this and terminated the employee.
I have been asked by the CEO to get in touch with the ex employee and initiate recovery. I just want to be sure if the can initiate recovery.
I am new to this company @psdhingra sir.
Thank you
As already mentioned earlier, since you have already terminated the service, you have lost the opportunity to recover the same to a great extend. Domestic enquiry can be initiated during the course of employment and not after that.
If you can prove that you have given the money as "loan", then you can recover that amount through money suit.
On the other hand, the terminated employee can easily claim one month's notice pay against you.
Check my blog at www.labourlawhub.com
From India, Kolkata
If you can prove that you have given the money as "loan", then you can recover that amount through money suit.
On the other hand, the terminated employee can easily claim one month's notice pay against you.
Check my blog at www.labourlawhub.com
From India, Kolkata
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