He is working as a Sales Manager and getting sales for his employer/company. In one
of his deals, customer got the goods already and the cheque from customer was a bounced cheque. He is now unable to contact the customer. His employer asked him to pay the amount owned by the customer, the amount can be as high as $11,000.
He did mentioned that there is company rule which stated such condition but he was not
aware of it until the incident happened. He is now not dare to clinch big deal for the company as he afraid he will not able to pay for it if the customer run away. This affect his performance.
Does the company has the right to ask his Sales Manager to pay for the amount not paid
by the customer? Even if the company has the company rule stated such condition, does company has the right to set such rule?
In the Employment Act, the company can only deduct employees' salary due to the lost of the negligance. To me, based on what you have described, the company has no right to demand the lost from the employee. Unless the company choose to proceed on the civil suit with the employee. In my opinion, even the company rules was set, the company has no right to demand for the compensation, unless it is solely the mistake or negligance of employee which caused the losses.