Dear HR Gurus, Please give your valuable input on the below mentioned case:-
A few months ago, a case came to light where-in an employee had been paid double salary for 16 months. An inquiry was conducted and the following emerged: -
(a) The employee Kamal K, was transferred from Corporate Office to Factory.
(b) The HR Manager at Factory, instead of taking the employee on the Factory payroll, as a transferred employee, enrolled the employee a second time, even generating a second employee ID. Consequently, the employee had two employee IDs and received two salaries.
(c) The Company has an automated payroll system and duplicate data in other fields should normally have thrown up an error. However, the employee in his new enrollment, kamal k gave his name as kamal kishor and provided his driving license, as proof. Also, he provided a new bank account.
(d) Kamal K was also incorrectly given attendance by Corporate HR. Kamal used to periodically proceed on temporary duty to factories, so Corporate HR continued to give him attendance, when he was physically not present.
Question - Why did the HR systems fail to detect this anomaly for 16 months? What corrective measures should Corporate HR institute, to prevent such errors, in future?
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Was PAN or Aadhar number not asked?
Did your company have digital attendance system?
Obviously the basic checks n balances had failed.
Your company should examine the whole case thoroughly to get to the root of the problem
Secondly employee needs to be issued show cause notice for drawing double pay.
Offence is serious as he was knowingly drawing double pay.
HR department n people in Corporate HQ need to be made accountable for loss of revenue n double payment.
This is purely HR department fault as not been verified correctly through a proper channel like transfer/ deputation etc. As earlier said please link in your payroll ADHAAR or PAN compulsory or mandatory so that error would not come in future. Happened is happened. Please call employee and inquire thoroughly along with comparative bank salary credit statement. If employee accepted his mistake tell them to provide loss amount to the company if not issue Show cause notice for further domestic inquiry as a legal.
Regards,
Anil Kumar KT
Manager HR & IR
Hi
When there is a internal transfer from corporate office to factory transfer order to that effect should have been issued with copy to all concerned including Corporate accounts, factory accounts and Factory HR Head. This could have avoided this major issue. It's purely lapse of process. On the other hand how factory manager created new emp id without proper back papers. An thorough enquiry may bring to lime light reg any conspiracy to gain monetary gain
Every company issue Employee number and it is the identity of the employee as far as pay roll is concern. One employee can't issue 2 different employee number unless or until a new joiner with the same name and title. If 2 employees are same name then company puts employee's father name after employees name for clarity.
When employee is transferred from Plant to HO then his employee number (ticket number) would not change and the possibilities of double payment would be zero.
May be it is done intentionally, requires proper investigation on the matter.
In first instance, it is the fault of HR department at corporate, how they were giving or genrating attendance when staff is not at their roll.
It is not understood how the HR department of factory created a new ID when the employee has come on transfer. The creation of new ID means new employment and the employee would loose his seniority.
How you generated UAN for the employee(New ID),when UAN is Aadhar seeded, your given explanation is also not satisfactory?
1) This is lapse from corporate and factory HR. There has to be proper communication and correspondence flow (letter/email) mentioning employee transfer.
2) Along with this, the employee (transferred) is also equally at fault. He should have clearly mentioned to be existing / transferred employee. In case, factory HR asking employee to resubmit documents, employee should have immediately contacted HO or his previous reporting manager. Also, why did employee who received double salary for 16mths remained quiet till date and not highlight this to factory / HO?
3) Factory HR should have confirmed with HO about the transferred employee. Taking such measures would have easily avoided such errors.
4) The systems might not detect duplication if they are not programmed to deduct any duplication for PAN, Aadhar or Bank details.
I would suggest that the entire HR process for on-boarding, transfers, attendance marking, payroll, org chart, etc should be revamped. Might be there are chances of similar glitches which have happened and have not yet been brought to anyone' notice.
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