Reclaiming expenses from an outgoing employee
Discussion
Got an employee who finished last week. He is owed 1 weeks wages and holiday pay which will be paid to him at end of month.
Checking through credit card transactions today it is apparent that he has been making several unauthorised expenses every month which had not been brought to my attention. Company credit card issued to employees only for business fuel and other misc business expenses.
Seems he's bought meals out at weekends, footwear, copious amounts of private fuel at weekends, occasional grocery shopping, McDonalds, snacks and lunches while filling up with fuel.
Can I just deduct these expense from final pay packet. All of these purchases were unauthorised.
TIA
Checking through credit card transactions today it is apparent that he has been making several unauthorised expenses every month which had not been brought to my attention. Company credit card issued to employees only for business fuel and other misc business expenses.
Seems he's bought meals out at weekends, footwear, copious amounts of private fuel at weekends, occasional grocery shopping, McDonalds, snacks and lunches while filling up with fuel.
Can I just deduct these expense from final pay packet. All of these purchases were unauthorised.
TIA
There is nothing in the contract about clawing back expenses as these expenses should never have been made in the first place. 2 examples in the last month. Footwear £112, Meal for two at weekend £76, private fuel at weekends £140.
Just want to see if I can legitimately deduct these from wages as these were personal expenses NOT business.
Just want to see if I can legitimately deduct these from wages as these were personal expenses NOT business.
He left last week but we still owe him for last weeks work and holiday pay.
The unauthorised amounts span a 12 month period so can't get him to clear the balance as such. Thinking that I contact him with the amount owed and get him to accept in writing that he is happy for the amount to be deducted or we take the legal route?
The unauthorised amounts span a 12 month period so can't get him to clear the balance as such. Thinking that I contact him with the amount owed and get him to accept in writing that he is happy for the amount to be deducted or we take the legal route?
Wombat3 and Berw - I like both posts and given me a bit of fire in my belly.
Countdown - Relatively small company and clearly the trust issues you develop have been abused. Lady in accounts has been asking for receipts for various transactions but when these are not forthcoming the individual has been 'making up' reasons for the purchases.
I'm a busy person and I think she's just swept it under the carpet without wanting to bother me, which I'm equally p****d off about as she's the one letting the money trickle out.
Janesmith1950 - Won't be letting it go, it's a 4 figure sum! However will be tightening up in the future. All other employees seem to tow the line with no issues.
Countdown - Relatively small company and clearly the trust issues you develop have been abused. Lady in accounts has been asking for receipts for various transactions but when these are not forthcoming the individual has been 'making up' reasons for the purchases.
I'm a busy person and I think she's just swept it under the carpet without wanting to bother me, which I'm equally p****d off about as she's the one letting the money trickle out.
Janesmith1950 - Won't be letting it go, it's a 4 figure sum! However will be tightening up in the future. All other employees seem to tow the line with no issues.
As he's only due approx. 10 days wages and a bit of holiday pay, I suspect the amount owed is far greater than his wage so will be difficult to take it all.
If he agreed to us taking the amount from his wages (i.e. all of it) could we take it? I get the thing about leaving him with minimum wage but is that different if he authorises it?
If not in agreement, thought I would give him 1 month to pay (1 month from date of leaving). Failure to pay in this period, then pursue via moneyclaim online?
Other staff are aware of this situation and are p****d off that he's been getting what are technically 'tax free perks' that they aren't.
As others have posted above, I am just as p****d off with the staff member in accounts who, hasn't the authority to authorise these payments but, has paid them. Slightly in her defence, is the fact that the outgoing employee has lied to her about what some of the transactions were. She has taken this as gospel and paid them. However, there are plenty of items on the credit card statements that should have been flagged up and spurious transactions with no receipts that are clearly not work related. Our policy states that no receipt provided, individual pays the bill. If it wasn't for the incompetence by the accounts person I probably would have had no need to start this thread.
If he agreed to us taking the amount from his wages (i.e. all of it) could we take it? I get the thing about leaving him with minimum wage but is that different if he authorises it?
If not in agreement, thought I would give him 1 month to pay (1 month from date of leaving). Failure to pay in this period, then pursue via moneyclaim online?
Other staff are aware of this situation and are p****d off that he's been getting what are technically 'tax free perks' that they aren't.
As others have posted above, I am just as p****d off with the staff member in accounts who, hasn't the authority to authorise these payments but, has paid them. Slightly in her defence, is the fact that the outgoing employee has lied to her about what some of the transactions were. She has taken this as gospel and paid them. However, there are plenty of items on the credit card statements that should have been flagged up and spurious transactions with no receipts that are clearly not work related. Our policy states that no receipt provided, individual pays the bill. If it wasn't for the incompetence by the accounts person I probably would have had no need to start this thread.
Edited by Fugawi on Wednesday 11th December 19:14
Edited by Fugawi on Wednesday 11th December 19:16
Buster73 said:
“Our policy states that no receipt is provided , the individual pays the bill.”
There’s your answer.
Partial answer. Some receipts are missing, some are just basic abuse of the card, and some unitemised receipts suggest the purchase is for something business related when it clearly isn't.There’s your answer.
Oilchange said:
Maybe next time allow the employee to use their own credit card for expenses and then reclaim the costs using receipts.
That way no cash spent per se by the employee and all costs recouped and the company has less to worry about. Like nil.
Is that doable?
Possibly, or to ask a senior employee to authorise the purchase and they pay for the item removing the option for abuse in the future. Biggest purchase on CC is fuel. This individual averaging over £800/month on diesel so it's a lot for an individual to put on their own card. Have just cancelled fuel cards as seem to be costing us more than buying fuel conventionally, however they do prevent other spending.That way no cash spent per se by the employee and all costs recouped and the company has less to worry about. Like nil.
Is that doable?
Buster73 said:
Has the OP had the accounts department go through all company credit card accounts over the last few years yet ?
He’ll not be the only one who’s “forgot “ about personal purchases on the company card.
Yep, all others checked and are squeaky clean. The only other offender left earlier this year. He’ll not be the only one who’s “forgot “ about personal purchases on the company card.
He denied some of it and put forward a number of excuses about some expenses which were total crap. I responded with some cast iron evidence and got a brief reply saying would this draw a line under it. I think he knew if I went back further, I would find more and may try and get him to repay these as well.
No apology, no explanation but paid.
No apology, no explanation but paid.
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