If any of the employees officially entrusted with card for the purpose of on-line transactions falls within the monthly salary ceiling of Rs.18000-00, the deduction for such financial loss can be effected u/s 7(2)(c) of the Payment of Wages Act,1936 and no agreement or bond is required.
In the case of employees with monthly salary of above Rs.18000-00, deduction can be effected based on the individual undertaking to that effect given in writing by them at the time of issue of the cards. My personal view is that no such agreement or bond is required for the purpose.
From India, Salem
This is in addition to what Mr Umakanthan M has said. He has given views from legal side.
Keeping legal issues aside, I recommend you having some communication from the company side about the issues involved in usage of corporate card for online transaction. If it is not a company agreement, then it could be a letter addressed to the employee. You must have taken loan card from the employee when issued the corporate card. In the same card either you can attach the liabilities owing to the misutilisation of the card or issue a separate letter that covers the details of the card as well as the instruction and liabilities.
A communication from the company would help in creating psychological deterrence. This deterrence helps them to use the card judiciously and helps in obviating the problems cause out of misjudgement.
From India, Bangalore
the employees are using cards provided by the company for which give clear instructions, the use of card and its utilities. Are you providing these cards for personal use or for the company use, it is very clear in the rarest cases such things happen using the cards personally. Also it is very crystal clear that all the employees are not issued with such cards, the responsible person or the one who is the head/leading the marketing or the services provided for the benefit of the company. Such cards are used in the service industries like medical aids/camps, bulk sales events, trade centres etc., in other cases for tour or marketing of the products, in such cases expenses inevitable met out by the leading person thus there is no question of misuse of the cards. Be clear in the happenings rather than giving a lot of instructions/restrictions.
Give the corporate cards to the responsible persons who knows what to do...
From India, Arcot