I work for a company that offers holiday services to customers. Recently, we encountered a case where one of our employees processed a fraudulent booking. This happened because the employee failed to follow the standard payment guidelines, which led to the company incurring a loss of approximately ₹4.65 lakhs.
Seeking Legal Guidance
We are seeking legal guidance on how this loss can be recovered from the employee, considering the negligence involved.
Drafting a Formal Policy
Additionally, I am looking to draft a formal policy to inform all employees about the consequences of not adhering to payment procedures or showing negligence in handling transactions.
Any advice or guidance on how to proceed with both the recovery process and policy creation would be greatly appreciated.
From India, Mumbai
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Seeking Legal Guidance
We are seeking legal guidance on how this loss can be recovered from the employee, considering the negligence involved.
Drafting a Formal Policy
Additionally, I am looking to draft a formal policy to inform all employees about the consequences of not adhering to payment procedures or showing negligence in handling transactions.
Any advice or guidance on how to proceed with both the recovery process and policy creation would be greatly appreciated.
From India, Mumbai
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To recover the loss from the employee due to the fraudulent holiday booking, you can take the following steps:
1. Investigate the Incident: Conduct a thorough investigation to gather evidence of the fraudulent activity and the negligence involved.
2. Consult Legal Counsel: Seek advice from legal experts to understand the legal implications and options available to recover the lost amount from the employee.
3. Employee Disciplinary Action: Based on the investigation findings, take appropriate disciplinary action against the employee as per the company's policies and relevant labor laws.
4. Recovery Plan: Develop a structured plan to recover the lost amount from the employee, which may include repayment agreements or deductions from future wages.
5. Policy Creation: Draft a clear and comprehensive policy outlining the consequences of not following payment procedures and the handling of transactions. Ensure all employees are trained and informed about this policy.
6. Training and Awareness: Conduct training sessions to educate employees on the importance of adhering to payment guidelines and the impact of negligence on company finances.
7. Preventive Measures: Implement additional checks and balances in the payment processing system to prevent similar incidents in the future.
By following these steps and establishing clear policies, you can address the fraudulent booking incident, recover the loss, and prevent such occurrences in the future.
From India, Gurugram
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741. Investigate the Incident: Conduct a thorough investigation to gather evidence of the fraudulent activity and the negligence involved.
2. Consult Legal Counsel: Seek advice from legal experts to understand the legal implications and options available to recover the lost amount from the employee.
3. Employee Disciplinary Action: Based on the investigation findings, take appropriate disciplinary action against the employee as per the company's policies and relevant labor laws.
4. Recovery Plan: Develop a structured plan to recover the lost amount from the employee, which may include repayment agreements or deductions from future wages.
5. Policy Creation: Draft a clear and comprehensive policy outlining the consequences of not following payment procedures and the handling of transactions. Ensure all employees are trained and informed about this policy.
6. Training and Awareness: Conduct training sessions to educate employees on the importance of adhering to payment guidelines and the impact of negligence on company finances.
7. Preventive Measures: Implement additional checks and balances in the payment processing system to prevent similar incidents in the future.
By following these steps and establishing clear policies, you can address the fraudulent booking incident, recover the loss, and prevent such occurrences in the future.
From India, Gurugram
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Dear Sari B,
You have written: Recently, we encountered a case where one of our employees processed a fraudulent booking. This happened because the employee failed to follow the standard payment guidelines, which led to the company incurring a loss of approximately ₹4.65 lakhs.
As the employee failed to follow the standard payment guidelines, the company incurred losses. Why did the employee not follow the guidelines? Was it due to oversight, or was it intentional? Why were the checks and balances or safeguards to avoid fraud not in place?
Since the company has incurred losses, your company's administration has focused on the person and not on the incident. Please conduct a domestic enquiry. The enquiry officer should focus on what happened rather than who did it.
Your post wants us to provide you with the guidelines on avoiding repetition of lapses in the future. However, since you are already taking legal advice, let us wait for the matter to reach its logical end. Waiting for the outcome of the domestic enquiry, as well as the lawyer's actions, will help you make the SOP foolproof.
Thanks,
Regards,
Dinesh Divekar
From India, Bangalore
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You have written: Recently, we encountered a case where one of our employees processed a fraudulent booking. This happened because the employee failed to follow the standard payment guidelines, which led to the company incurring a loss of approximately ₹4.65 lakhs.
As the employee failed to follow the standard payment guidelines, the company incurred losses. Why did the employee not follow the guidelines? Was it due to oversight, or was it intentional? Why were the checks and balances or safeguards to avoid fraud not in place?
Since the company has incurred losses, your company's administration has focused on the person and not on the incident. Please conduct a domestic enquiry. The enquiry officer should focus on what happened rather than who did it.
Your post wants us to provide you with the guidelines on avoiding repetition of lapses in the future. However, since you are already taking legal advice, let us wait for the matter to reach its logical end. Waiting for the outcome of the domestic enquiry, as well as the lawyer's actions, will help you make the SOP foolproof.
Thanks,
Regards,
Dinesh Divekar
From India, Bangalore
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For this you have to have certified standing orders confirming the discciplinary action on employees violating/not following the standard operating procedures to stop such type of incidents in future else you can not have your own deduction format for recovering any amount of money from the concerned staff.
From India, Kanpur
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From India, Kanpur
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(Fact Checked)-Your advice is correct. Certified standing orders are indeed necessary for disciplinary actions. It's also true that deductions can't be arbitrary. Keep up the good work! (1 Acknowledge point)
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Dear Mr Sari B.
First, let me introduce myself, I am a retired HR professional from one of the largest PSU in India having a workforce of around 2.20 lakhs as on date (year end 24-25). I have a long experience in the HR domain which is as long as around 40 years right from Workshop / Project / Area / Subsidiary - Company Level. Now coming to your query -
It is very sad to hear about the loss your Company suffered due to negligence of an employee. You have desired to know, how the losses can be recovered from the employee concerned.
First of all I would suggest you to issue a Charge Memo to the employee concerned under the Certified Standing Orders or Model Standing Orders, as may be applicable, and ask for an explanation. If the explanation is found to be unsatisfactory, an inquiry may be set up and the employee should be given ample opportunity to prove himself/herself not guilty. If the charges stand PROVED, then there are provision to recover the losses from employee in the Standing Orders.
If you need any practical help with regard to drafting a Charge Memo, conducting domestic inquiry or issuing penalty order or seeking legal advice on the matter, please feel free to contact at arunjain.ncl@gmail.com .
I am in Gaziabad (UP) and Delhi. But I am open to come to your place on request and give consultation off-site / on-site, as may be requested.
From India, New+Delhi
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First, let me introduce myself, I am a retired HR professional from one of the largest PSU in India having a workforce of around 2.20 lakhs as on date (year end 24-25). I have a long experience in the HR domain which is as long as around 40 years right from Workshop / Project / Area / Subsidiary - Company Level. Now coming to your query -
It is very sad to hear about the loss your Company suffered due to negligence of an employee. You have desired to know, how the losses can be recovered from the employee concerned.
First of all I would suggest you to issue a Charge Memo to the employee concerned under the Certified Standing Orders or Model Standing Orders, as may be applicable, and ask for an explanation. If the explanation is found to be unsatisfactory, an inquiry may be set up and the employee should be given ample opportunity to prove himself/herself not guilty. If the charges stand PROVED, then there are provision to recover the losses from employee in the Standing Orders.
If you need any practical help with regard to drafting a Charge Memo, conducting domestic inquiry or issuing penalty order or seeking legal advice on the matter, please feel free to contact at arunjain.ncl@gmail.com .
I am in Gaziabad (UP) and Delhi. But I am open to come to your place on request and give consultation off-site / on-site, as may be requested.
From India, New+Delhi
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(Fact Checked)-Your advice aligns with Indian labor laws. Issuing a Charge Memo, conducting an inquiry, and following due process is indeed the correct approach. Great job! (1 Acknowledge point)
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Canteen Policy.doc
CiteHR.AI
(Fact Checked)-Your advice on conducting a domestic enquiry is accurate and aligns with best practices in HR management. It's crucial to focus on the incident, not the person. (1 Acknowledge point)