Is It Legal to Hold Employees' Original Certificates as Security? Let's Discuss!

Hi all,

I have a question regarding the legality of collecting employees' original certificates as security. Is it legal or illegal to do so? Additionally, I would like to know if giving acknowledgment for this practice is considered correct or wrong.

Thank you,
Kumar

It's demotivating to the new joiner. It's illegal. If you are hiring them, then hire with faith in them. Otherwise, don't hire.

Hello,

It is one of the practices followed in HR nowadays. If you want to obtain certificates, you should follow the proper procedures and documentation.

1) Have a written agreement with terms and conditions that both parties must agree upon.
2) Provide acknowledgment for whatever you receive from the employee.

Thank you,
Kumar

"Hi Guys,

Whether collecting the original certificates as security from employees is legal or illegal. Giving acknowledgment is correct or wrong.

Thanks,
Kumar"

Dear Kumar,

It is illegal to hold someone's documents and keep them in your custody. It is a criminal offense, and an FIR can be lodged against this practice. You are wrongly retaining someone's property with dishonest intentions.

Thank you.

Dear Malik Sir,

I also came across a few companies, especially security services, that take originals from field officers as a form of security. Field officers deal with cash distribution within the organization, sometimes carrying 10-15 lakh in cash in a single day. However, after a fixed period, let's say 6 months of service, companies return these documents.

Regards,

It is not proper and is also illegal to retain the original documents of the candidate. This practice reflects poorly on the ethics that the company follows - to be avoided at all costs if the management wants to project a fair and clean image of itself to its employees and the public.

Regards,

P. Arunkumar

It is illegal, my dear, because one won't be able to produce these documents if he/she needs them for further use. I agree with Mr. Malik that it is a criminal offence.

Dear Kumar,

It is very bad to collect and keep others' documents, as everyone has said it is an offense and an FIR can be filed for this. Additionally, it reflects poorly on ethics and practices.

Please refrain from doing so.

With warm regards,

Pandiyarajan Project Manager - GT Electronics

Dear Ellundula,

It is not illegal, but it is illegitimate to do so. I have time and again stated that recruitment comes under the ambit of business risk. Without taking these risks, no company can function effectively at any time.

If a document is misplaced or damaged, the person to whom the document belongs can sue your company for negligence and also for theft. In such a case, the directors would be held accountable.

Just because a few HR people started a certain practice does not mean we have to follow the same. If there is a need to follow a practice, it should be one that is good and sustainable.

By collecting original documents, the company is not only increasing its recruitment and asset management costs but also incurring additional legal liability that is unnecessary.

In any case, the company cannot retain any of the original documents even if the candidate leaves the company without proper formalities because, according to the law, the employee owns the certificate, and you are merely a caretaker to whom it has been entrusted for safekeeping.

Therefore, consider whether your company wants to face all these troubles or maintain a clean and free recruitment process.

Regards,

Octavious

Dear Kumar,

It is illegal to keep original documents from employees. You can ask them to provide attested proofs while joining, or you can personally check their original documents and keep the photocopies with you.

Regards,
Animesh.

Dear Kumar,

It is illegal to hold someone's documents and keep them in your custody. It is a criminal offense, and an FIR can be lodged against this practice. You are wrongly retaining someone's property with dishonest intentions.

Regards,
J S Malik
Noida, Uttar Pradesh
Mobile: 9810557181

Dear Mr. Malik,

Can I ask under which section of the IPC "holding documents is a criminal offense"? Please let me know; it will be a great help.

Regards,
Sudi

Hi Ellandula,

It is not acceptable by law, and there is also a problem of safeguarding the credentials (certificates). The originals are encouraged in the loan process by the authorized banks, that too with a letter of undertaking (LOU) and a receipt cum link letter (RCLL). Therefore, I recommend not holding originals of employee credentials at any point in time other than for verification purposes.

Bye

Is there any verdict against keeping the originals? In Andhra Pradesh, some of the universities/colleges keep the certificates.

Agreed with the views given by my other colleagues.

My queries are:
1. How secure are the documents in the company's custody?
2. What happens in case there is a change in the custodian officer, i.e., resignation/transfer, etc.?
3. What does your company policy say?

Thanks & Regards,
Nishi