Legal Risks of Using Security Cheques for Employee Fraud Prevention: What Should We Do?

My company has garment stores in 3 states. For a few months, we have been facing a problem where employees, upon wanting to quit the company, take cash from store sales or engage in major conspiracies. To control this issue, we have implemented a policy of taking 4 blank cheques as security from every store employee, which will be returned upon their separation from the company.

Legal Concerns Regarding Security Cheques

a) Can an employee take any legal action against us?

b) Can we take an employee to court if they commit fraud and do not have sufficient funds in their account to recover the losses incurred?

Please advise on the best course of action in such situations.

Thank you.

Please check this thread and you can get another solution from this: https://www.citehr.com/37270-agreeme...heque-sec.html.

In addition to this, you can also deduct a fixed amount of salary (like 10% per month) for security purposes. This can help cover your losses if an employee leaves the company without notice period. Regards