Rajneesh Kumar Kesarwani,
Generation of Non-Performing Assets (NPAs) is collateral that the banking, as well as non-banking industry, has to live with. NPAs are generated unwittingly. To tide over this challenge, you may insert additional filters to check the creditworthiness of the prospects. To assess the creditworthiness, you may train your staff and find out how to understand the psychology of the future customers. Find out whether or not any pattern emerges from the loan defaulters.
Secondly, you need to make some provisioning to absorb NPAs. If you start recovering the NPAs from the managers, then it could demotivate them. The recovery could deter the other staff, and no one will come forward to take up these positions. Such a situation could also impact your business.
Every business has some or another problem. The owners of the manufacturing organisations have to contend with the non-moving inventory. The IT companies have to grapple with the software engineers who are on the bench. It is impossible for them to keep only those staff who are billable. The problem of low seat occupancy is faced by passenger airlines or bus operators.
Yes, employers have the right to impose fines and penalties against the defaulting employee. However, to prove the misconduct, you need to conduct a domestic enquiry, and if the misconduct is proved, then the punishment can be forfeiture of salary and wages. However, check whether or not the recovered amount has to be deposited in the Labour Welfare Fund (LWF). Check whether or not can it be shown as income by the company.
Any deductions, other than statutory deductions are illegal. Hence you need to follow principles of natural justice before awarding a punishment. Therefore, take a call judiciously.
Thanks,
Dinesh Divekar