When an employee damages company property by negligence, the loss is sometimes recovered from the employee’s salary. Lenvica HRMS makes the process easy by automating the recovery. This help document describes how you can recover loss on damages with Lenvica HRMS.

I’m going to issue a damage recovery to one of our employees. I’ll input the damage details and recovery plan in to Lenvica HRMS and then the whole process of recovery is automated. The damage is to be recovered from employee salary in installments.

Step 1: Input Damage Details

Damage and Recovery
Employee
Add Damage details

Specify the type of damage, and the amount.

Damage Type

Step 2: Calculate Interest

The company is not charging any interest on the damage, so, the interest is zero.

Interest

Step 3: Recovery Mode

The recovery can be made in lumpsum or in installments. My employee will pay for the damage in 3 installments.

Recovery mode

Step 4: Recovery Plan

Specify the recovery cycle, date from which recovery starts and also mention if the recovery is to be made from employee salary.

Recovery plan

If you choose to recover from salary, the system will automatically deduct installments from employee salary.

Damage and Recovery details
Installments

Remember to include Salary Head ‘Damages Recovery’ in Employee’s Salary Group.

Salary Group
Select salary group
Add salary head
Save salary head
Salary structure

Step 5: Manual Recovery

If you make a recovery out of salary, you have to update the system with the details. My employee made a cash payment of 1000. Let me show you how to update this in the system.

Recovery tab
Add recovery
Save recovery
Information
Installments after manual recovery

Step 6: Altering Installment Amount

If you want to modify the installment amount for a month, the system can insert a new installment or adjust the amount in future installments. My employee has requested to deduct only 500 instead of 1000 for this month, and he wants to extend the recovery with another installment, let me show you how to do that.

Select installment
Select installment
Select installment
Installment inserted

Alternatively, the system can adjust the amounts in the future installments instead of adding another installment. Let me show you how.

Modify installment
Save modified installment
Recalculate installment
Recalculated installments

Step 7: Repayment

The repayment amount can show up in payslips.

Payslip

Once you input the damage and recovery details, the system will automatically recover the repayments from employee salary until the damage is fully repaid.