Lost Mobile Phone at Work: Should the Office Compensate the Employee?

Hi all,

I realize this topic may be considered off-topic for discussion, yet I am writing here because I am unable to find a solution for it. One of our employees has lost his mobile phone in the office. It was seen by the peon, who placed it on the table. However, the very next day, the peon could not find it on the table.

The individual who lost the mobile phone has reported it to HR, but no one is taking responsibility. My question is, who should be held accountable for this incident? Should the employee receive compensation for the lost phone?

Regards,
Sujata

Hi Sujata,

It's very difficult to decide until you take up a thorough investigation. You have to find out who the people present at the time of losing the mobile are, who last saw it, and whether any outsiders were inside at that time. How about security? Are there any checks on the employees or other staff at lower levels like housekeeping staff and office boys? Please find out all of these things, and even after inquiring about them, if you still cannot trace the mobile, you can decide whether to pay the amount to the employee or not.

Meanwhile, conduct an inquiry and record all the statements of the persons who were present at the time of the theft. This will help you to have an idea of what exactly happened and to check whether there are any contradictory statements among the individuals. Just conduct a domestic inquiry, like a fact-finding process.

Moreover, it is the responsibility of the owner/user of the mobile to safeguard it against theft or damage. How can you or the company be responsible for it? Have you framed any policies on this? If not, first frame such policies on mobiles, vehicles, and other company as well as individual properties which are being used for company purposes; otherwise, you will end up in serious problems in the future. Everything should be laid down in black and white.

Regards,

PRADEEP

Hi Pradeep,

Thank you so much for your reply. I would definitely look into that. The point the employee is raising is, aren't things safe in the office? Actually, a peon placed it on the table, as I mentioned in my earlier email. However, when the employee asked him the next day, he claimed to have left it there. He is unaware of who might have taken it.

The employee who lost his mobile is insisting that it is the company's responsibility to cover the cost because things should be secure in the office.

Regards,
Sujata

Hi Sujata,

As long as it is private property, it is the responsibility of the individual to take care of that. I can bring 1 lakh (or I can say) to the office and lodge a complaint with the management saying that I have lost 1 lakh and ask the management to pay me that amount. Is it justifiable? The management or you have not instructed the employee to keep his mobile in the office or you have not given any order to the peon to take the mobile from the employee and keep it safely. When you have not done either, then where is the question of owning the responsibility and pay the amount of mobile to the employee. If he has given it to the peon, let him settle the issue with the peon. You need not interfere in this at all.

Regards,
PRADEEP

Hi,

Primarily, it is one's responsibility to look after his own things!

The peon may have been careless to keep the phone on the table and not tell anyone about it but report it only when the employee complains of the theft. But was the person not more careless to lose his mobile phone in the first place?

The core question is if the company is responsible for the loss of an individual's property while in the office. I am of the opinion that the company is NOT responsible and certainly should not pay for the loss. Since the incident has happened on the office premises of the company, a regular police complaint may be lodged by the owner of the property or by the company if the police permit, and thereafter let the law take its course. In the process, a few people may be picked up by the police for "investigation" by the authorities, and this will vitiate the atmosphere within the organization. The company may not be prepared to let this happen.

But paying for the loss/theft of the property, the company need not pay! The employee could as well have INSURED his property and got due reimbursement. For his failure, why should the company foot the bill? What will happen if one reports a loss of a wallet containing Rs. 50,000 or so and claims that the company make good the loss/theft? There can be umpteen situations that can come up!

It is best to learn from this situation; appropriate rules may be made, and the future be protected. At best, the company may pay this amount going against all the above arguments BUT it must make suitable rules for the future! Though I vote for "no payment" and "making rules for the future!

Regards,

Samvedan

September 16, 2006

Hi Samvedan,

Thank you very much for your valuable advice.

Hi Pradeep,

Actually, what happened is he forgot the mobile on the table, and in the evening, when the peon saw it, he placed it on another table. The next day, when he asked for his mobile, the peon replied that he doesn't know and mentioned that he kept it on the table only.

However, as you rightly pointed out, it is the responsibility of the individual to take care of his/her things. But he is questioning the situation, wondering if it was in the office only, then where could it have gone.

Regards,
Sujata

Dear Sujata,

Many things, especially mobiles, expensive pens, and watches, get stolen from offices all over the world. This is due to not only insiders but also many customers, vendors, contractors, and other agents entering the offices.

As Pradeep mentioned, the person cannot hold the office responsible for theft. It can become quite awkward for the company to get involved. Yes, checks can be done tactfully if the management receives the information within an hour of the occurrence. However, this should be handled tactfully. The issue of searching is very sensitive. In your case, please do not entertain it. Even in high-security defense establishments and government mints, theft of personal belongings is not tolerated. If he insists, tell him to lodge a complaint with the police with the prior consent of appropriate company authorities.

Another approach is to ask him to lodge a complaint in writing and name the suspects. Initiate disciplinary proceedings, conduct a domestic inquiry, and take appropriate actions. If the person does not name any suspects, issue a notice and circulate it among all, asking for any information, and post a copy on the notice board. Your work ends there. If there is feedback, you can proceed.

Remember one thing: NEVER ENTERTAIN ANYTHING UNLESS THE EMPLOYEE PROVIDES ALL DETAILS IN WRITING. HE MUST COMMUNICATE WITH THE COMPANY IN WRITING.

Regards,

SC

Hi Swastik,

Thank you for your reply. I agree with you. I need to inform him directly that the organization is not responsible for this theft.

Once again, thank you very much.

Regards,
Sujata

Dear All,

Re: Mobile Theft in Office

Please do the following:

1. Organize a meeting of all staff, including peons and sweepers, and let the most senior staff member mention that what has happened is a very serious issue. If management identifies the culprit, they will be dismissed.

2. Ask each staff member to be vigilant because next time it could be their turn. We cannot always be so careful. Sometimes, in a hurry, we leave our wallet or mobile on the desk and go for a meeting.

3. Issue a circular stating that management is not responsible for any valuables or cash stolen from the office premises. Include this in the Service Manual.

4. Improve security by practicing 'Management By Walking About.' The Senior Manager of HR or Admin should take a stroll around the entire office twice a day randomly to observe what is happening in the office, including the reception and toilet areas. Politely inquire with a few staff members about how they are doing and what they are working on if it is not their usual place of duty.

5. Conduct a roll call and check the arrival and departure times of all staff, particularly those who arrive early and those who stay late. Inquire about why they arrive early, why they stay late, and what tasks they are working on. Be polite and maintain a positive attitude.

6. You should observe improvement within four weeks at most.

Good luck, and please inform me of the results.

Govind
98338 90250

Hi,

I feel that it is the sole responsibility of the employee to take care of his personal belongings. Though the mobile is given by the company for official usage, it is the responsibility of the employee to take the fullest care of the instrument and protect it from these kinds of incidents.

Regards,
Prabhakar Ch
Hyderabad

Dear Sujata,

I would advise one thing from my experience. I have seen that if you get yourself involved in all these activities, you will be unnecessarily courting trouble. Today it is mobile, tomorrow it will be specs, someday it will be somebody's tiffin, and the list continues. A situation may also arise where you take action against someone based on a complaint, and it turns out to be a prank or joke. In such cases, both parties may shake hands and say sorry, while you will be left with wasted time, energy, strained relationships, and a lot of explanations.

Regards,
SC

Hi Sujata,

First, the employee should be made aware of the difference between office and private property. Secondly, you may get an informal inquiry/investigation done by a senior person in that department to bring out the facts - sequence of events, etc. Like others have already pointed out, cash, valuables, etc., are the individual's responsibility and not that of the company. All this should be done in a way that the employee realizes this in an understanding manner, not an antagonizing one.

Regards,
Kurra Sarat

Put up a notice: 💡

"Employee apne samaan (aur Sabotage) ka khud Zimmevaar Hai"
LOL 😂

Hi there,

Personal belongings that you bring to the office, its safety is the responsibility of the individual. The company need not pay. However, here is a suggestion so it does not occur in the future: Make a lost & found locker at a convenient place in your office. The charge of the locker may be given to the caretaker(s) of your office (person responsible for closing and opening the office). You can instruct them to keep such items in the locker and report the same to the administrative head for informing others in the office via circular, mail, or whatever is convenient at your place. During office hours, such items should be deposited at the reception counter or admin. dept. (whatever you have).

Daizy

Dear Daizy,

Sorry to say this, but I feel these types of issues should be nipped in the bud. Any action on the part of the management regarding lost and found will result in unnecessary wastage of valuable time. The line should be drawn between personal and professional and how much we are ready to serve and where our services end. What we, as HR, should do at most is, if somebody informs us about an unclaimed article, we circulate the information in the office and state the name of the employee from whom it can be collected. In the case of the factory, we issue a notice and keep the article with Administration. Nothing more.

Regards,
SC

Hi Sujata,

Please penalize that employee for being so careless and forgetful that he lost his mobile. If he can't safeguard his own simple mobile, how can the company trust him with valuable documents and properties of different natures? Also, penalize him for having stolen the company's time by talking through the mobile during office hours without obtaining your permission for using his mobile in the office.

Issue a suspension order immediately or at least a warning memo. Without this, you have not done your job.

Jeeva

Hi Sujata,

Incidents like this keep happening in our office as well, and employees keep blaming the inadequate safety system in the office for the same. It is next to impossible to ascertain the culprit(s).

I agree with Pradeep on this that the onus of keeping one's things safely lies with the employee. What if the cell was lost at home...? I guess if adequate care is taken in keeping one's belongings safely, incidents like this can be averted.

Regards,
Richa

Yeah, I too agree that payment should not be made by the company. If payment is made for such cases, there might be fraudulent occurrences where employees falsely claim damages for items that were not lost in the office.

Hi Sujata,

I think this is more a question of self-awareness. Employees should take care of their things. Let's suppose you are traveling on a train and your belongings are lost along the way. That doesn't mean the railway authorities will compensate for this loss; rather, you should take care of your things anywhere you go. To be more careful, you can enhance security by conducting checks and increasing awareness.

Thanks,
Rahul S

I am extremely sorry, Jeeva. I don't know how I forgot your name.

Actually, it is my habit to thank everybody as they are taking out time from their busy schedule to reply to me. Thanks a million for your suggestion! :D

Cheers,
Sujata

My feeling is that the company is not to be held responsible. While I agree that it happened in the workplace and all that, the employee must take care of his/her belongings. I think most companies have policies regarding usage/carrying of mobiles in their office anyway. Just recheck what your policy says.

The post says that the peon saw it on the table, and the next day it was not there. How do we conclude that someone else took the mobile? The employee himself/herself may have retrieved the mobile and then misplaced it somewhere else. It would not be right to accuse someone else (office cleaning staff, etc.) of theft without proper evidence.

Hi Sujatha,

One thing you have to realize is that the mobile is lost, not stolen or thieved. Being in India, we can't expect everyone to be honest; everyone is looking for some chances. My father used to say, "Even if it is 5 paisa or 5 lakhs, don't take other people's money." Some may think, "What will happen? It is just one rupee; we can take it," while others may think, "Yes, this is a big amount."

Okay, I am boring. Coming to the matter, the person who lost the mobile didn't realize that he lost it. If he had realized, he would have contacted the office, saying, "If anyone has seen my mobile." So, it is his fault only.

It's my opinion.

Sankar

Sujatha:

When you conduct a formal inquiry, please ensure that it doesn't affect anybody.

Rajendran R Span Outsourcing Pvt. Ltd. Bangalore

Hi Suja,

I am wondering how you will conduct the inquiry without it or its conclusion affecting anybody - as suggested by Rajendira, a suggestion to which you have agreed. Can you please explain?

Jeeva.

Dear Sujata,

Irrespective of the result of the investigation, I personally feel that the employee who lost is the one who is responsible. It is his responsibility to safeguard an asset that has been given by the company, and thus the ownership of the situation should be taken by the employee and not by anyone else. A thorough investigation will lead to avoiding such situations in the future and people being vigilant. So, ownership has to be taken by the employee himself.

Regards,
Anusha

Hi,

Thanks to all of you. The issue has been resolved. The employee has accepted his mistake. He will take care in the future. I will not be requiring any more suggestions on this.

Thanks for your kind support once again.

Regards,
Sujata

Hi,

Thanks to all of you. The issue has been resolved. The employee has accepted his mistake. He will take care in the future. I will not be requiring any more suggestions on this.

Thanks to all of you for your kind support once again.

Regards,
Sujata

Hi!

Though I'm entering late in the picture, as much has already been discussed... Bla! Bla! Bla! The point left is: Apart from doing what my colleagues have suggested, do the following: Ask the employee to answer the following points on an emergent basis (office memo) -
- Was the said employee using the mobile in public interest?
- Has the company provided him with a mobile for office use?
- Did he take prior permission from the office to carry the mobile in office premises?
- Did he enter in the office records (gate security register) that he is entering with a mobile?
- Reproduce the authentic copy of documents showing that he was the owner of a mobile along with the copy of intimation to the office that he has lost the said mobile in the office. I think this will surely help in putting the record straight and then set up a fact-finding committee. This will solve the present problem as well as the problems that may arise in the future. With best regards, Alok Goel

Hi Everybody,

It is interesting to see suggestions pouring in even after the climax of the episode has been declared. While Sujata is yet to confirm that she was not the employee in question, we can browse through the details of mobile phone/laptop/BlackBerry losses the world over and be amazed at the figures.

Jeeva.