Dear All,
Even after repeated instructions, if a few employees become a reason for lift repair, chair repair, computer repair, etc., due to misuse in the organization, as an HR professional, what action should I take on behalf of the company? Do we have to deduct the cost incurred due to such misuse from the employees' salary? If yes, then in that case, if the individuals who were the cause of the misuse could not be identified, can the entire amount be deducted from all employees' salaries?
Please help me out with this.
Thanks,
Nivya
From India, Madras
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Even after repeated instructions, if a few employees become a reason for lift repair, chair repair, computer repair, etc., due to misuse in the organization, as an HR professional, what action should I take on behalf of the company? Do we have to deduct the cost incurred due to such misuse from the employees' salary? If yes, then in that case, if the individuals who were the cause of the misuse could not be identified, can the entire amount be deducted from all employees' salaries?
Please help me out with this.
Thanks,
Nivya
From India, Madras
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Dear Nivya,
You have raised a ticklish issue.
Don't expect employees to use the company property the way they use it in their homes. Yes, there are companies whose employees treat their workplace as a second home, but such companies are few and far between.
If the culpability of the employee is established in misusing the company property, then you can recover the amount either fully or partially. However, before penalizing the employee, make sure that you follow the principles of natural justice and the process of discipline as well.
If you impose any penalty, make sure that the deductions don't exceed more than 50% of the employee's take-home salary.
Have you measured the cost of breakages and damages? If yes, then what percent of your total expenditure is it? Do you maintain a proper asset register? If yes, then while calculating the value of the damaged item, what value do you take into account? Is it the price at which the item was purchased or the depreciated amount?
Lastly, regarding imposing a collective penalty, you can term these deductions as maintenance allowance. This may cause heartburn among the employees, and they may get demotivated.
Will you be able to measure the cost of demotivation vis-a-vis the cost of breakage and damage? If yes, then go for the option that has the least cost to the company.
Ok...
Dinesh V Divekar
From India, Bangalore
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8072You have raised a ticklish issue.
Don't expect employees to use the company property the way they use it in their homes. Yes, there are companies whose employees treat their workplace as a second home, but such companies are few and far between.
If the culpability of the employee is established in misusing the company property, then you can recover the amount either fully or partially. However, before penalizing the employee, make sure that you follow the principles of natural justice and the process of discipline as well.
If you impose any penalty, make sure that the deductions don't exceed more than 50% of the employee's take-home salary.
Have you measured the cost of breakages and damages? If yes, then what percent of your total expenditure is it? Do you maintain a proper asset register? If yes, then while calculating the value of the damaged item, what value do you take into account? Is it the price at which the item was purchased or the depreciated amount?
Lastly, regarding imposing a collective penalty, you can term these deductions as maintenance allowance. This may cause heartburn among the employees, and they may get demotivated.
Will you be able to measure the cost of demotivation vis-a-vis the cost of breakage and damage? If yes, then go for the option that has the least cost to the company.
Ok...
Dinesh V Divekar
From India, Bangalore
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