Dear All, Can the employer debit the employee salary for any reason? Pls let me know if it is legal. Thanks, Firoj Attar
From India, Pune
From India, Pune
Dear Firoz,
Debit note is issued to the employee if employee is paid excess wages, bonus or allowances. Issue of Debit Note is part of recovery process.
Debit note is also issued to the employee to recover costs arising out of lapse on the part of employee. For example, if the restaurant captain under-bills the customer then to recover the losses, debit note could be issued to the captain. However, for the recovery of such kind, it is better if the enquiry is conducted.
Debit Clause: - Why you have given heading of the post of as "Debit Clause" is not understood. Do you wish to include debit clause in the appointment itself? If you wish to do so then it would be wrong. Issue of debit note can be SOP of Accounts Department wherein procedure can be enumerated as to who is authorised to issue to the debit and what could be the sequence of activities.
Issue of debit note is nothing but official communication to the employee concerned on deduction of some money from his/her monthly wages. This communication helps in reducing queries from the employee concerned on the under-payment. Debiting some amount directly from the salary without issue of debit note is bad practice and it can capture of attention of the Labour Officer during his/her regular visits or inspections of the payrolls.
Thanks,
Dinesh Divekar
From India, Bangalore
7884Debit note is issued to the employee if employee is paid excess wages, bonus or allowances. Issue of Debit Note is part of recovery process.
Debit note is also issued to the employee to recover costs arising out of lapse on the part of employee. For example, if the restaurant captain under-bills the customer then to recover the losses, debit note could be issued to the captain. However, for the recovery of such kind, it is better if the enquiry is conducted.
Debit Clause: - Why you have given heading of the post of as "Debit Clause" is not understood. Do you wish to include debit clause in the appointment itself? If you wish to do so then it would be wrong. Issue of debit note can be SOP of Accounts Department wherein procedure can be enumerated as to who is authorised to issue to the debit and what could be the sequence of activities.
Issue of debit note is nothing but official communication to the employee concerned on deduction of some money from his/her monthly wages. This communication helps in reducing queries from the employee concerned on the under-payment. Debiting some amount directly from the salary without issue of debit note is bad practice and it can capture of attention of the Labour Officer during his/her regular visits or inspections of the payrolls.
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Firoz,
I agree with Mr. Dinesh,
Employer can debit but before doing that he has to justify the same and should be communicated to the employee. Payroll team can debit the salary as per the norms and policy. Because at time of Auditing they have to justify with supporting documents.
I will request Mr. Firoz that please elaborate the question because it is not giving a clear picture in which sense u are asking the question.
Because Debit Clause cannot be added as a point in appointment letter or in salary slip.
Regards
Rajesh Pradhan
HR - Department (B L Kashyap & Sons Ltd.)
888048180.
From India, Delhi
I agree with Mr. Dinesh,
Employer can debit but before doing that he has to justify the same and should be communicated to the employee. Payroll team can debit the salary as per the norms and policy. Because at time of Auditing they have to justify with supporting documents.
I will request Mr. Firoz that please elaborate the question because it is not giving a clear picture in which sense u are asking the question.
Because Debit Clause cannot be added as a point in appointment letter or in salary slip.
Regards
Rajesh Pradhan
HR - Department (B L Kashyap & Sons Ltd.)
888048180.
From India, Delhi
Why to stipulate it as a clause in the letter of appointment as the employer has the inherent right to recover any loss or damage caused to his property or any excess amount paid to an employee.Non-mentioning of debit clause in the letter of appointment, in my view, does not divest the employer of his right.However it is advisable to issue a notice to the employee about the recovery and afford him an opportunity to explain his case in accordance with the principles of natural justice since the decision to recover adversely affects the employee.Even the Payment of Wages Act permits recovery against loss or damage or unauthorized absenteeism etc.
B.Saikumar
From India, Mumbai
B.Saikumar
From India, Mumbai
Dear Sir,
Thanks a lot for your immediate reply. Also want to know if an employee has done a mistake which has delayed the process or has lost time of other employees. then debiting some amt. to that employee is right?
Thanks,
Firoj Attar
From India, Pune
Thanks a lot for your immediate reply. Also want to know if an employee has done a mistake which has delayed the process or has lost time of other employees. then debiting some amt. to that employee is right?
Thanks,
Firoj Attar
From India, Pune
Dear Firoz,
What you are asking in your second post us about imposing penalty on some employee for his alleged misconduct and losses arising out of this misconduct. Before taking disciplinary action, you need to conduct domestic enquiry. If the misconduct is proved then then to recover penalty, you may issue Debit Note.
Your original question was on Debit Clause. I had given reply for Debit Note. However, to issue Debit Note you need to have sufficient grounds.
Thanks,
Dinesh Divekar
From India, Bangalore
What you are asking in your second post us about imposing penalty on some employee for his alleged misconduct and losses arising out of this misconduct. Before taking disciplinary action, you need to conduct domestic enquiry. If the misconduct is proved then then to recover penalty, you may issue Debit Note.
Your original question was on Debit Clause. I had given reply for Debit Note. However, to issue Debit Note you need to have sufficient grounds.
Thanks,
Dinesh Divekar
From India, Bangalore
Hi Foroze,you need to figure out whether the delay is due to any act of sheer neglect or negligence on the part of the employee or due o environmental factors which the employee does not have any control over.If your conduct rules consider it as a misconduct and you have evidence of it, you can take disciplinary action after issuing him show cause notice spelling out the circumstances and impose any appropriate penalty specified in your rules after being found guilty in a a domestic inquiry .However However if the incidence is of slight neglect, it is advisable to counsel the employee first and warn him against it initially before resorting to disciplinary action since such incidents are of common nature
B.Saikumar
From India, Mumbai
B.Saikumar
From India, Mumbai
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Debit Note Report.xls
Debit-note-requ est-form-1.doc