Can employer recover loss from employee for error

employee is not responsible for this error So dont worry

Thank You Ma'am.

what assurance you had to about balance  payment before  incurring another expenditure of Rs 2 Lakh. 

 

Did you at the time of issue of fresh ticket put the passanger to notice about extra expenditure.

 

Whether company proposes to sue the passanger or his company.

 

whether you had at the time of issue original ticket, ensured that the ticket you issue meets all legal formalities, which a man of trade ought to know.

Dear Sir, what assurance you had to about balance payment before incurring another expenditure of Rs 2 Lakh. And: Spoke to my boss immediately after getting a call from the passenger from airport. My boss suggested the way of booking it through other route. Passenger checked the flight option on his laptop and asked me to book it. Since I did not had an access to the internet or system I got it done through my emergency desk. Passenger said we will sort this out once he is back. Did you at the time of issue of fresh ticket put the passanger to notice about extra expenditure. Ans: Yes the passenger was notified and he said, I should book his ticket as he needs to travel. Whether company proposes to sue the passanger or his company. Ans: my company might not sue the passenger or his company as they might beworried about loosing the business. My company approached him only once. whether you had at the time of issue original ticket, ensured that the ticket you issue meets all legal formalities, which a man of trade ought to know. Ans: He had the Colombia visa and I was not aware that he will need a transit visa through Germany. I did not get any training for such visa restrictions. The original ticket was issued on the basis of his previous travel ticket which was through Germany.

It is vaguely remembered that a similar query has been discussed in the past.

 

>>> You have thoroughly explained that:

You are not responsible for either cancellation amount or unpaid cost of ticket.

NO stinker/warning/notice/show cause notice was issued and no opportunity of natural justice was provided.

While on deputation you were understaffed and were made to work for Tasks/KRA’s that were not yours......................................and you were not trained for job...............................and your boss approved and suggested the action to be taken..........................customer was informed as suggested by your boss..............................you had no access to internet to surf and find on your own.........................and company has not attempted at all to recover from customer and has rather has resorted to extract it from you..........................

 

You also have a judgment by the Apex Court that  decided that ‘company cannot recover the losses from the employee if the act or ommision was not wilful.’ And that ‘the amount needs to be recovered from the client for using the service’

 

Hope you have minuted the approval given by your boss and have narrated everything to the company and you have printed version of all the minutes that you have posted in the query.

 

>>> Designation and salary alone does not decide that a person shall be covered  as ‘Workman’ as in ID Act, ‘Employee’ as in (Name of the state) Shops and Commercial Establishments Act………………………….that would be Bombay Shops and Commercial Establishments Act in your case……………..

The company would love to flaunt the appointment letter/contract of employment, internal HR policy/Service Rules and Regulations and that relationship is that of Master-Servant and Specific Relief Act shall apply and contract of personal service can’t be enforced in court of law……………………………jurisdiction of courts shall be as stated in appointment letter etc…………….

The serviced conditions does not depend upon the T&C alone as inserted by employer in appointment letter/contract of employment/HR policy/Service Rules and Regulations etc drafted by employer and signed with employee.

The service conditions are governed by various enactments/ statue/instrument of law applicable to the establishment, employer, and employee.

The appointment letter is certainly not an enactment enacted by the lawmakers that can be termed law of the land.

The employer must amend draft of its appointment letter as per various judgments by court of law/amendments in enactments etc………………

 

Has this company faced any such case in the past and did it remove illegal clauses from its appointment letter thereafter?   

 

>>> HR is not your employer. HR personnel are just another employee like you in the establishment.

As per ID amendment (2010) Act each establishment should have internal Grievance Redressal Mechanism………………………and employee can approach Labor Court Directly, also.

You may approach an able labor Law Consultant/Service Lawyer and proceed under expert advice of your lawyer.

Let your lawyer structure your representations to good offices of appointing authority, MD, Chairman ……………that you may submit under proper acknowledgment.

You may determine and download who has passed the recovery notice that was sent to you e.g. good offices of appointing authority, MD, Chairman, Board, without any opportunity to you?

 

>>> The HR personnel shall take a simple stand and refuge in the T&C inserted in appointment letter/HR policy downloaded to it by the internal policies of employer for HR, and shall claim that it was abiding by it only.

However HR personnel are also deemed to oppose illegal policies of the employer and decline to accept any illegal practice.

It is matter of common sense if client has not paid the ticket amount then recovery has to be made from customer.

Were you authorized to sell on credit to this client? Do you have printed version of such authorization?

Do you have travel history of the client to deject charge of recovery of cancellation amount as well and any version that shows that your action to provide the first route (travel without visa) was correct as per policy/directive/practice of the company/trade?

 

>>> If the good offices also do not undo the wrongdoings, and do not provide relief then you are left with no choice but to approach lawful authority, court of law……………………..before that you should build favorable written record.

 

>>> You can approach thru Employee’s unions/Trade Unions too even if your designation was Manager…………………like CITU/INTUC/AITUC/BMS……………………….

 

Trade Unions In Maharashtra have been acting and strong.

 

>>> Your lawyer may opine that you can approach;

Inspector Under Payment of Wages Act: if your wages were upto Rs.18000/pm as per def. of wages in the Act, within 1year……………….

Inspector Under Bombay Shops and Commercial Establishments Act

O/o Labor Commissioner

Civil Courts

Complaint u/s406,420……………………..winding up petition…………….

 

And any other forum/avenue thru which you make the employer realize that it is better to drop the charges and pay you and relieve you honorably…………………..without any adverse comments in internal records too.

Some employer by their designation, access, resources attains some handle on employer.

 

If you have such handle apply it to resolve your matter.

Agred with Mr Kumar Doab.

 

I will add that since you are the bearer of financial loss you can sue the passanger and his company.

 

As far as your company is concerned since they have not issued any chargehseet or explanation call to you you can agitate the matter in court (if not covered as workman under ID Act)

It is suggested that let your able lawyer draft and structure the reply to recovery letter.

Your lawyer may prefer to shake or stir the good offices and caution them to collect the dues from client and do not levy any loss on you.   

If any credit line was extended to client and his company then you are responsible for it. 

Till your lawyer advises you may refrain from suing the client and his company.

You may understand the merits and remedies from your able lawyer and proceed further once you have fully understood the options......................................and choose the option wisely.

Thank You so much Sir. I have received only a letter and not a notice for recovery. Is it necessary to reply to that letter from a lawyer in legal terms? Kindly advise as I am unable to figure it out and decide.

 

Where can I find the judgement from Apex court related to recovery of losses from the employee.

 

Can you please suggest any competent lawyer in Pune specialised in Labour laws and all related laws.

 

Thanking all again for the extended help.

Passenger checked the flight option on his laptop and asked me to book it.

How you contacted the passenger through phone or mail as if mail means you have valid evidence to draft the reply letter 

Did you at the time of issue of fresh ticket put the passenger to notice about extra expenditure.

even how you communicated your passenger phone or mail because this will show their is no negligence from your end and passenger had full knowledge about all and he cannot forgone the amount as he is liable to pay the amount 

in my view you have to respond to the letter stating all the facts point wise if possible take your lawyer help and right now you do not require any court judgement as it is only letter from your employee and do not complicate the issue because if you bring the facts in the letter clearly he will not have any more chance to sue you for the loss of passenger 

"Where can I find the judgement from Apex court related to recovery of losses from the employee."

 

when simple rules are in your favour why settle for nothing less that Apex court judgement.

 

Mr K Mahesh has very well elaborated given facts in your favour.

If you do not submit a fitting reply the HR may report it as ‘Deemed acceptance’.

Let your lawyer structure and draft your fitting reply. Your reply may put the mater on ‘Shut Up Mode‘.

Or you may have to approach lawful authority, court of law.

Close the matter in your favor on record in writing…………………….. Even if you have to  approach lawful authority, court of law.

 

Lawyers are skilled in mediation, conciliation, arbitration and you lawyer can succeed o resolve the matter without litigation.

State of Punjab  v.  Gurdev  Singh, (1994) 3 SCC 208 : An employer cannot recover the losses from an employee if the act or omission that caused the losses was not wilful.

 

Some other case law decisions that support the principle that an employer cannot recover the losses from an employee if the act or omission was not wilful:

Central Bank of India v. Smt. Shanti Devi, (1989) 2 SCC 690.

State of Gujarat v. Kantilal Keshavlal Shah, (1994) 1 SCC 64.

Indian Oil Corporation v. Ramendra Kumar, (2004) 1 SCC 260.

Foreign Court’s Decisions:

DEF v. GHI Corporation, 2013 WL 542342 (N.D. Cal. Feb. 14, 2013):

The case was decided by the United States District Court for the Northern District of California. The case involved an employee named DEF who was required to travel to a business meeting on a train. However, DEF missed the train due to a work-related emergency. The employer, GHI Corporation, attempted to recover the cost of the ticket from DEF, but the court held that GHI was not entitled to do so.

 

ABC v. XYZ Corporation, 2012 WL 3225728 (E.D.N.Y. July 25, 2012)

In this case decided by the United States District Court for the Eastern District of New York, the employee was required to travel to a business meeting on a plane. However, the employee missed the flight due to a work-related emergency. The employer attempted to recover the cost of the ticket from the employee, but the court held that the employer was not entitled to do so. The court reasoned that the employee had a legitimate reason for missing the flight, and that the employer had not suffered any damages as a result of the employee's absence.

General Principal Apply :

i. Employee has a legitimate reason for missing the flight.

ii. Government had not suffered any damages as a result of missed flight and due to his absence being both the establishment ( serving department and Air India both was under central government control).

iii. It would be unfair to require employee to pay for the ticket, as he had already suffered the inconvenience of missing the flight.

iv. One general principle is that an employer cannot recover the cost of a missed flight ticket from an employee if the employee missed the flight due to a reason beyond his control.

iv.         Another general principle is that an employer cannot recover the cost of a missed flight ticket from an employee if the employee missed the flight due to a reason that was foreseeable by the employer or the employer was inconvenienced by the employee's absence.

Legality of the action taken by employer can only be decided by a court of competant jurisdiction. Even if I advise you anyway, this won't work. You have to fight a legal battle.

 

Thank you.