If a company loses money because of an accountants’ mistake, how will it be recovered from them?
Is it ethical to recover the loss from the said employee?
If it can be recovered, what is the procedure to do so?
2 Likes
I think it all depends on the terms of employment, discipline / code of conduct and the procedure. Usually if there is an allegation/primary evidence that an employee is the reason for some loss to the business, a proper enquiry shall be conducted. It has to follow the standard operating procedure to conduct a disciplinary processs.
If the concerned disciplinary authority finds the employee guilty, then action can be taken as per the defined procedures (it should be published and available for reference to all employees).
If the procedure is to deduct the loss from employees, the company can proceed with that (amount of deduction shall comply with the payment of wages rules).
2 Likes
ok thank you for your valuable feedback. one more query, if nothing is mentioned there in agreement, can it be implemented?
1 Like
if no mention about disciplinary proceedings, recovery etc in agreement or code of conduct, then it would be risky to execute the same all on a sudden to one employee. Recommend to consult your company legal advisor / HR advisor and then take a call
1 Like