HR Home Forums Community Can we deduct the cost of damage done to company property, from an employee’s annual bonus?

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  • Conner Lantz
    Keymaster
    Post count: 4836

    In British Columbia, can we legally deduct the cost of damage done to company property, from an employee’s annual bonus? If yes, what are the stipulations?
    If they signed a policy agreeing to the possibility of deduction? If they were found to have been negligent? 

    Conner Lantz
    Keymaster
    Post count: 4836

    This is a difficult question to answer.
    In short, yes you can deduct the costs; however, you:

    • need to be definitive that the employee was negligent and that this was the ONLY cause of the damage
    • the employee has to agree to that and in no way be viewed as coerced to agree to it (as in you are fired unless you pay for the damage)
    • the employee needs to be aware before the incident that this was a risk – did you have a policy saying you are responsible for damages to equipment if it is deemed that your negligence caused the damage

    It is very difficult in all jurisdictions for employers to claw back pay, for obvious reasons, so exercise caution and weigh the cost/benefits would be our words of advice.

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