In any work environment, cooperation between the company and its employees is based on mutual respect and responsibility. However, unexpected incidents might occur, such as an employee accidentally damaging company property. At this time, does the employer have the right to require employees to compensate? What is the standard for compensation? Are there standard procedures and documentation requirements?
This article will delve into these issues and
provide some feasible solutions for business management.
1
Yes, compensation can be demanded to indemnify the damage caused.
2
Generally, the company can ask for the full value of the
damage caused (i.e. if the employee broke a company vase, he must pay the real
market value of that vase)
The specific amount to be indemnified must be communicated with the employee, and should not be exorbitant. It just needs to be the market value of the property broken
The employee can pay via:
☞ . Instalment (through agreement, preferably MOA)
☞ The employee can pay in full
☞ 通过扣除工资
. Wage deduction (but there are strict rules on wage deduction so there should be a specific MOA for this too)
☞ If there's a bond at the start of the employee's employment, it may be deducted from there
3
Procedures:
✯ It must be clearly shown that a specific employee caused the damage or loss
✯ Employees must be given the opportunity to explain
✯
The amount to be claimed must be fair and must not exceed the actual value of the damaged item
✯ The employee agrees that his wages be deducted to answer the damage (put it in a contract)
✯ Deduction should not be more than 20% of weekly wages
List of Documents:
✯ Notice to employee showing the damage caused and the value to be claimed. Must give time for the employee to reply to this.
✯ Contract stipulating how payment between employer and employee will be made.
Reminder:
When dealing with compensation issues for employees who damage company
property, be careful to follow labor regulations. Labor laws are complex, so
before making any decisions, it is strongly recommended to consult an attorney
to ensure that the measures taken comply with the law and avoid possible
violations. This not only helps protect the company's interests, but also helps
safeguard the rights and interests of employees and establish a legal and fair
handling mechanism.