We as a company gave new laptop to employee for his work from home.
As security we are going to deduct 50% of the amount from his next two salaries.
This amount is refundable to him in case of his resignation and termination.
Kindly tell the legal compliances that we have to do with him for security deduction and laptop future expenses.
Hey Riya! About deducting laptop security from your employee’s salary—here’s what you should keep in mind for legal compliance in India:
Before deducting any amount from salary, get written consent from the employee.
Ideally, have a signed agreement or an addendum to the employment contract specifying:
Laptop cost
Deduction amount and period (e.g., 50% for next two salaries)
Refund policy upon resignation or termination
Responsibility for damage/loss
Deductions from salary should be lawful and authorized by the employee.
The deduction amount should not reduce the salary below the minimum wage (if applicable).
No deduction can be made without employee’s consent except those permitted by law.
Document the deduction properly in payroll records.
Maintain clear records of deducted amounts and refund status.
Draft a policy document covering usage, maintenance, liability for damage, return conditions, etc.
Communicate it clearly to the employee.
Ensure the laptop usage complies with company’s IT and data security policies, especially for work-from-home setups.
Draft and sign a written agreement with the employee covering all terms.
Take explicit consent for salary deductions.
Maintain proper documentation.
Follow applicable labor laws on deductions.
Define policies on laptop use and responsibility.
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