Can an employer withhold or deduct salary in lieu of company assets not returned by the employee upon employment termination or exit? What will be the clause that has to be added to the employment letter?
In general, employers may have policies in place that allow for the deduction or withholding of salary to recover company assets not returned by an employee upon termination or exit. However, it is important to ensure that such policies comply with local labor laws and regulations.
The clause that addresses this issue should clearly outline the circumstances under which deductions or withholdings may occur, the process for determining the value of the company assets, and any applicable procedures for disputing the deduction. It is advisable to consult with legal counsel to draft a clause that is legally sound and fair to both parties involved.
From India, Kolkata
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1In general, employers may have policies in place that allow for the deduction or withholding of salary to recover company assets not returned by an employee upon termination or exit. However, it is important to ensure that such policies comply with local labor laws and regulations.
The clause that addresses this issue should clearly outline the circumstances under which deductions or withholdings may occur, the process for determining the value of the company assets, and any applicable procedures for disputing the deduction. It is advisable to consult with legal counsel to draft a clause that is legally sound and fair to both parties involved.
From India, Kolkata
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An employment contract is arrived at between the employer and the employee. As the employer is a 'job giver' and the employee is a 'job receiver', naturally, the employer has the upper hand over the employee to devise policies/clauses that may safeguard the interests of the employer without hampering the employees' interests.
In such cases, the employer has every right to demand the company's assets from employees who are seeking separation from the company. If the assets are not surrendered to the company, the employer has the power to proceed legally to recover the assets or their equivalent cost.
From India, Aizawl
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In such cases, the employer has every right to demand the company's assets from employees who are seeking separation from the company. If the assets are not surrendered to the company, the employer has the power to proceed legally to recover the assets or their equivalent cost.
From India, Aizawl
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Thank you for the prompt reply.
Can you also help me with the language of the clause that can be added to the employment letter if an employee fails to return company property and the action that can be taken?
From India, Kolkata
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Can you also help me with the language of the clause that can be added to the employment letter if an employee fails to return company property and the action that can be taken?
From India, Kolkata
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In an employment letter, management should not issue any warnings. If an employee takes any action that could harm the company's image, cause loss to company property, or fail to return company property, these issues should be addressed individually, on a case-by-case basis.
To enhance the clarity of expectations, consider including the following clause in the employment letter or appointment offer:
"You are solely responsible for the proper upkeep and maintenance of any company property under your possession during your employment with us."
From India, Aizawl
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To enhance the clarity of expectations, consider including the following clause in the employment letter or appointment offer:
"You are solely responsible for the proper upkeep and maintenance of any company property under your possession during your employment with us."
From India, Aizawl
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Sir, Employee resigned and left but she gave wrong credentials in her resignation letter. Should we accept or reject or do nothing?
From India, Bengaluru
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From India, Bengaluru
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I am not able to cull out anything from the phrase "wrong credentials" mentioned in the query. Basically, employment is a contract based on the willingness of the employer and the concerned employee. The contract continues as long as there is willingness of both the parties. But when the contract falls within the ambit of labor laws, certain statutory restrictions are imposed on this option.
Particularly, the employer is precluded from terminating the contract on his own in an arbitrary fashion and so far as the employee is concerned, the only restriction is his strict compliance with the notice clause of exit or his attempt to resignation as a ruse to avoid the stigmatic consequence of any disciplinary action either apprehended or pending.
Even in cases of the contract of employment concerning higher category employees, sec.23 of the Indian Contract Act, 1872 puts some restrictions upon the exit clause on the grounds of public policy. Therefore, the employer has no locus standi to sit as a judge over the reasons for resignation and on this score reject it.
Even if the employee casts some aspersions on the employer in the resignation letter, the employer can assure some remedy if the allegations are true and reasonable and persuade the employee to withdraw his resignation and if not, deny them stoutly while accepting the resignation. What is the use of keeping an unwilling employee by compulsion?
From India, Salem
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Particularly, the employer is precluded from terminating the contract on his own in an arbitrary fashion and so far as the employee is concerned, the only restriction is his strict compliance with the notice clause of exit or his attempt to resignation as a ruse to avoid the stigmatic consequence of any disciplinary action either apprehended or pending.
Even in cases of the contract of employment concerning higher category employees, sec.23 of the Indian Contract Act, 1872 puts some restrictions upon the exit clause on the grounds of public policy. Therefore, the employer has no locus standi to sit as a judge over the reasons for resignation and on this score reject it.
Even if the employee casts some aspersions on the employer in the resignation letter, the employer can assure some remedy if the allegations are true and reasonable and persuade the employee to withdraw his resignation and if not, deny them stoutly while accepting the resignation. What is the use of keeping an unwilling employee by compulsion?
From India, Salem
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Wrong credentials = An employee stated in her resignation letter that she is an Accountant, but she actually performs data entry work on the computer. She has now left the company, and we are unable to reach her. The resignation itself is not an issue, but the incorrect credentials mentioned in the letter have left us unsure of how to proceed. Could the false credentials cause problems in the future, such as if she contests leaving the job in court or claims to be an accountant rather than a data analyst?
From India, Bengaluru
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From India, Bengaluru
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