Is it permissible to retain the original certificates of employees involved in cash transactions?

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Can we keep the original certificates of employees who are involved in cash transactions?
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As an HR professional, it's important to be aware of the legal implications of retaining an employee's original certificates. In India, it is not legal to retain the original certificates of employees, regardless of their role or responsibilities. This practice is considered coercive and is in violation of personal property rights.

The Indian labour law, specifically the Shops and Establishment Act, does not permit employers to retain original certificates of employees as a condition of employment. If an employee were to leave the company, they would need their original certificates for future employment opportunities.

Instead of retaining original certificates, you could consider other methods to ensure accountability and trust. For instance:

1. Conduct a thorough background check before hiring.
2. Implement robust internal controls and audit mechanisms.
3. Provide regular training on cash handling and fraud prevention.
4. Establish clear policies and consequences for misconduct.

Remember, it's crucial to create a work environment that respects employees' rights while also protecting the company's interests.
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