Dear All, please help me understanding , if a lumpsum amount can be taken from a salaried employee in exchange of the trainig that shall be imparted regarding trading in the market, can that be adjusted against the losses made by that employee, on his consent? Is there any formal process for the same?Is this even legal?
From India, Indore
Dinesh Divekar

Dear Ms Kavita Vyas,

Specific to the case at hand, please confirm to us the terms of employment mentioned in the appointment letter. Did you make any agreement with the employee over and above the appointment letter? If yes, then please share the broad content with us.

After sharing the above, please confirm to us the facts of the case:

a) The DOJ of the employee, designation etc.
b) What kind of training was imparted, where imparted, who imparted it, were training records maintained and how the training expenses were calculated
c) Why did the organisation suffer loss? Was it a failure of the employee? Was the work within the purview of the Job Descriptions (JD) of the employee or out of it?
d) On suffering the losses, did your organisation order domestic enquiry? If yes, who conducted it and what was the process of domestic enquiry?
e) Has the employee's blameworthiness been established in the domestic enquiry? Was the focus of the enquiry on the accused employee or was it on what happened? Was the enquiry conducted as per the procedure mentioned in the standing orders?
f) On what basis, the decision to recover the amount has been taken?

Your major question was about recovery for the losses suffered by the organisation. Yes, you can recover but a very small percentage of it. Even before recovery, you need to conduct a domestic enquiry. The domestic enquiry should be fair and impartial. It should not be vitiated in any way. A good number of court rulings are there wherein the courts have reduced the penalty imposed or when the unreasonable amount was recovered.


Dinesh Divekar

From India, Bangalore

First, you have been cryptic with the facts, for whatever reasons. I can assume you are not authorised to discuss it. However we donít even know your designation and how this matter affects you. We can only guess your industry. In such a case, giving the right answer is impossible.

However, prime facie, no you can not make any such deduction from employee salary, as it is disallowed under payment of wages act.

From India, Mumbai
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