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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541. 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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Canteen Policy.doc
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(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)