luvuyoz
3

i'm not sure of the laws governing labour in your country but in SA you cannot even if it is a good reason what you can do if you have say for example deposited more than you should have is to call the employee in and tell them of the mistake and inform them that you will be recovering the overpaid amount, also that goes a long way in keeping good employee relations in your company
From South Africa, Johannesburg
kumaresank
18

NO, employer can't though there is a "hidden" clause permitting employer to withdraw the deposited "money", it can't be exercised unless u r given an opportunity. If employor fails, suit for damages will sustain.
From India, Tiruchchirappalli
bertyjay
Every client of a financial institution is bind by regulations. Be it a salary or any other type of account, any withdrawal, debit which is not satutory must be in line with the account opening clauses.
In case of an error by the employer, the employee has to be notified for him/her to trigger reversal procedure because s/he is the only person authorised to proceed with such transactions.Moreover, if the error is done by the bank, the operation can be reversed immediately or within 24 hours else the employee will have to be notified and his appoval sort.This is how is work in Cameroon

From Cameroon
rameshbashyam@yahoo.com
22

hi,
once my company deposited my manager's salary in my account (we share the name). i realised the huge difference and did not withdraw. within a day or two, they reversed the amount and deposited my right salary.
the company has a right to withdraw the salary if the amount deposited is high or wrong. I don't thing this should be made an issue.
I have also faced the situation of banks wrongly crediting my account and correcting it.
human error - they can and should rectify it.

From India, Madras
paranjinarayanan
Hi Everybody,
It can only happen if the salary account is opened by the company to cite an example you have an SB account in Public sector bank where the company credits your salary thru RTGS and the company has not introduced you it cannot happen , whereas if the company has introduced you to a private bank and the company has a rapport with the bank then it can be done. I think I am correct in this regard.

From India, Madras
amardeep1973
1

Yes, It is possible, if at all any extra salary is posted to u r account. but it should be intimated to the employee and proper reason should be given for reversal of the salary.
From India, Bangalore
mukundan thottekkat
5

Hi! it is not possible by company to withdraw an amount which hv deposited in yr account. regards, mukundan
From India, Ahmadabad
Anilsuresh
Dear, Its not possible to reversal salary from employee account without employee permision. rgds Anil Chauhan
From India, Delhi
Neer300182
67

Dear Ele,
Good After Noon:-P!!!
In a normal course a company can deposit into employee's account but cant withdraw the same.
It can be withdrawn only when it will be mistakenly credited by bank. All deposited are subject to supporting available with it. If company deposit additional amount into employee account then company can claim it directly from employee.

From India, New Delhi
White Eagle
22

Can Salary be deposited & then withdrawn by company?

Amount once credit in the account of employee cannot be withdrawn without permission of said employee. If by mistake or due to error of employer such thing happen then also law do not permit employer to take arbitrary action. In contract Act there is specific provision to deal with this sort of situation. Section 72 of Indian contract Act states that payments or delivery made under mistake or coercion must be made good or be returned. In Sri Shiba Prasad Singh v. Maharaja Srish Chandra Nandi it was made clear that money paid under mistake is recoverable whether the mistake is of fact or of law but by lawful way.


Some of my friends will ask why we should not recover amount directly from the account of employee. When we can? Yes, you can recover amount from account of employee if you have good term with bank but it can create legal issues for employer and bank. To have bird eye view of issue we have to understand few points:

1. There are three parties in this case. i.e Employer, Employee and Bank.
2. What was the mistake due to which wrong amount credit to employee account and by whom this mistake was done?
3. Is there any clause in agreement which stipulate that employer or bank can recover amount back from the account of employee. If amount credit by mistake.

Employer and employee are having master and servant relationship. Same time Bank and employee are having customer (consumer) relationship. So we have to take into consideration not only employment law but customer, contract and banking law also.

If mistake was on the part of banker than he can recover amount back from the customer (employee) because in standard contract there is always clause, which give right to banker to recover back amount which is credit by mistake. But I am not sure whether there is any clause in contract (salary account agreement) which gives right to employer to recover back amount from employee. If there is no such clause then employer legally cannot recover back amount from account of employee whether it credit by mistake or not.


If we assume there is some sort of agreement like this then also how can bank recover back amount on recommendation of employer because mistake was on the part employer not on part of bank. So on this ground bank cannot recover amount from customer account.

Now coming to nature of mistake first, If mistake is like in place of crediting Rs 1000 to employee account employer had credit Rs 1200 then employer can adjust excess amount with next month salary (if possible)...................................

For more information: White Eagle: Can Salary be deposited & then withdrawn by company?

From India, Hyderabad
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