Perquisite of employee

Querist : Anonymous (Querist) 29 October 2010 This query is : Resolved

There is an employee of ours who has left our service. She was provided with a car which she has taken. The condition of employment states that upon leaving she should take the care and pay at book value less depreciation. The employee is not willing to pay and insist on the company to take back the car. Can we take a sell it and recover the balance money from the Full & final settlement of the employee. By doing this are we as employer going to be contravening any of the labour related laws? pl. suggest urgently.

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H. S. Thukral (Expert) 29 October 2010
No. This is an offer from the employer to the employee. If the employee does not accept the offer, employer can not insist on that.

s.subramanian (Expert) 29 October 2010
I agree.

Kirti Kar Tripathi (Expert) 29 October 2010
Mr. Thakural is correct.

R.Ramachandran (Expert) 29 October 2010
As rightly pointed out by Mr. Harbhajan, the Company cannot force an employee/ex-employee to take the car. The company has to pay whatever is due to the employee. If the car is returned, it is for the company to dispose of the car in whatever manner it opts to dispose. The employee’s terminal benefit has nothing to do with the sale proceeds of the car. If the car is sold by the company whether below the book value or above the book value it can keep it. It cannot adjust any difference (i.e. between the book value minus depreciation and the actual sale proceeds) from the terminal benefits due to the employee who has quit the service.

Devajyoti Barman (Expert) 29 October 2010
Yes

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