Facing a 250,000 Recovery Demand: How Should I Handle This Mistake with My Former Employer?

Dear Team, I need advice. I have worked at a private limited company for 2 years on third-party payroll. I resigned from my job for some personal reasons. After 5 months, I received an email from my previous company regarding a recovery amount of 250,000/-. I replied to the email seeking clarification on what the recovery was for. I have returned all company assets, and there are no pending issues from my side. However, they have not disclosed the reason for the recovery amount. I have tried contacting HR and my reporting manager, even had a meeting at the office, but no one has provided any information on the nature of the recovery.

They have also sent a recovery letter to my address stating that I need to pay the 250,000 within 7 days, or they will take legal action against me.

I believe the issue arose when I mistakenly ordered the wrong part from the brand due to a lack of knowledge or training. I have been in contact with the brand for 1 or 2 months, following their instructions. Despite my efforts to rectify the mistake, the brand has charged my previous company 250,000 for that part. I suspect that my previous company is using this charge against me as a form of recovery.

Please advise.

Dear member,

In your post, you mentioned that you were on a third-party payroll. However, did the principal employer issue you any terms and conditions of employment in their company? Has anything been mentioned about penalties or recoveries in the letter?

Secondly, even if you ordered the wrong part, why wasn't the order checked by the manager? Were you the only person who signed the order?

Lastly, the discovery of the incorrect order was made five months after your departure. Why did the company not have checks and balances in place to identify the mistake?

In fact, for the omissions and commissions of the work, the highest authority involved in the work should be questioned instead of you. It is not understood why the company is holding you responsible while allowing others to go scot-free.

Regardless, you may review the appointment letter, and if nothing is binding, then communicate to the company that you are not responsible for the losses. Seek clarification from the company on the provision of which law or act they have raised the recovery claim under. I do not believe you are liable for the payment of any damages.

Thanks,

Dinesh Divekar

Hello, In reference to the above, there is nothing to worry about because if any part is wrongly ordered, then you are not the responsible person for it (because you are not the authorized person). Please check, as some other authorized person's signature will be available in the purchase order. Also, you were on third-party payroll, so the company can't send you the recovery letter directly. They are only projecting their mistake on you.

Suggestion for Communication
I suggest that you communicate with the related authority for better transparency. If they are not responding properly, you can ask through mail. Also, mention in that mail that if it is not fairly assessed, I will take it up to court!

Dear Sir, Thank you for your response and advice. I have reviewed my agreement copy, and it appears to be a work assignment letter provided to me that is not signed by me. In the letter, they have stated that for any loss or damage during the employment of our client, you will be responsible for it.

You have ordered the wrong part. There are others in the chain who check quality control, etc. They also have an equally important role to play. Why did it take 5 months to discover? The item could have been sent back. Have you placed the order on your own, or were you asked to procure the product? They cannot solely blame you. Yes, a mistake was made, but it is part of business life. If they initiate legal action, seek advice from a lawyer and craft a response. They cannot pin the blame on you for ordering the wrong part. The user department should have been proactive in identifying the wrong item, and the system should have functioned properly. It is not an individual's responsibility alone; the entire system and team work together in a company. Do not blindly accept any liability.