Company property includes cars, laptops, machinery, uniforms, and more. Damage to these assets can affect employees and employers financially and impact their ability to work efficiently. This can lead to wasted time and resources.
One way to reduce these costs is to ask for reimbursement for damages. But can an employer blame an employee for damages? This question involves employment law and company rules, and we can help with advice on this issue.
How Can I Prevent Damages in the First Place
One of the primary methods to safeguard company property from damage is to institute a comprehensive Company Property Policy. These policies serve as a protective measure for both employees and employers alike. Specific guidelines may be tailored to address distinct types of company assets, such as Company Cars. By implementing clear and well-defined policies, organizations can mitigate risks, promote responsible usage of company resources, and ensure the longevity and optimal functioning of their valuable assets.
Within the policy it’s important to highlight what is classed as intentional property damage or if accidental damage can be called negligence and what salary deductions (if any) may be applicable. This should also be included in the employment contract. If the employer cannot provide a signed agreement, then they won’t be able to deduct money from the employee, as this would be seen as an unlawful deduction of wages and could result in a claim against the company.
What The Policies Should Include
These rules explain what employees must do at work, including following guidelines and regulations. They cover a variety of expectations and instructions;
- To ensure the correct use and maintenance of company property
- the company reserves the right to pay part of or none of the costs to repair or replace damaged property
- misuse or neglection of the property will be subject to disciplinary action.
When it comes to company vehicles, it is essential that the employee who will be driving signs a vehicle log report. Prior to each use, they should diligently inspect the vehicle and make a note of any issues or damages present. This proactive approach ensures that any problems are documented and addressed promptly, maintaining the safety and integrity of the company’s fleet of vehicles.
So, what can I do if company property is damaged?
Irrespective of who is at fault, an employer may seek to have the employee pay for damages. However, it is important that employers ascertain who is accountable for the liability.
Employers will generally try to retrieve the cost of damages directly from the employee. But they can only do so when there is a clear contractual agreement and an agreement (between both parties) of the payment terms. If the employer has insurance, they should check to see if they can make a claim for the damage through it. Also, if they can claim and there is an access charge, they may agree that this is what the employee will pay back.
If an employee must pay damage costs, an employer must be fair and act reasonably. For example, employers can never claim back more money from an employee than the actual cost of the damage repayments. This is regardless of any agreement within the employment contract. Also the amount an employer deducts per pay period must be reasonable with respect to the employee’s earnings.
In a nutshell, you can deduct an employees pay for damage to company property. The correct procedure must be followed and the contract of employment must allow for it.
Can You Claim Damages from Ex-Employees?
In regard to ex-employees, it may be a little more difficult to claim back any money for damages. If their contract of employment has a deductions clause along the lines of ‘the Company reserves the right in the event of termination of employment, to deduct from your salary any overpayment made and/or monies owed to the Company by you including but not limited to damage or loss of the Company’s property caused by you’, then you are within your right to reclaim the money back for damages, ensuring that it is a reasonable and justified amount.
However, if you did not issue a contract or that wording is not within the employees’ contract of employment then it may be a little more complicated. If they are no longer employed with the company, then it will become a civil issue in which you will have to take your claim to a civil court. Whether this is something that is worth while to do is dependent on what the claim is, if you have followed and have evidence that you have followed a procedure and also if you have the time and resources to do this.
Still Struggling?
If you have some damaged company property, we will be able to advise you on making an employee pay for damages. Here at Wurkplace we can offer employment advice on issues such as this, provide our clients with a contract of employment template and tailor this to their needs. We also offer management training with our Level 7 CIPD qualified HRCs on HR Policies and Practices which will allow your managers to be fully equipped and knowledgeable regarding issues such as this. For more information on how we can help you, get in touch! You can contact us on our quick form, or speak to one of our experts directly: 0330 400 5490.
A valued member of the Wurkplace team providing administrative and coordinating skills for the HR department and also overseeing the accounts department of the business whilst carrying out key bookkeeping tasks and conducting payroll.
Georgia holds a level 3 in Business Administration and AAT level 2 whilst continuing to work towards gaining a diploma in AAT.