FINANCIAL ACCOUNTABILITY & ASSET MANAGEMENT POLICY

SECTION 1 - PURPOSE AND SCOPE

1.1 Policy Objectives

1.1.1 This policy establishes:

(a) Employee financial accountability for losses caused to Company

(b) Employee responsibilities for Company assets and property

(c) Liability framework for negligence, fraud, misconduct, or policy violations

(d) Recovery mechanisms for losses and damages

(e) Asset issuance, care, return, and replacement obligations

(f) Consequences for asset damage, loss, or non-return

1.2 Fundamental Principle

1.2.1 Employees are accountable for:

(a) Exercising reasonable care in handling Company assets and finances

(b) Protecting Company from financial losses within their control

(c) Bearing financial consequences of negligence, fraud, or violations

(d) Compensating Company for losses directly caused by employee actions or omissions

1.2.2 This policy protects Company's legitimate financial interests while complying with Payment of Wages Act, 1936 limitations on salary deductions.

1.3 Scope of Application

1.3.1 This policy applies to:

(a) All employees regardless of level, position, or employment type

(b) All Company assets, equipment, property, and financial resources

(c) Financial losses arising from employee conduct during employment

(d) Asset accountability from issuance through return upon separation

PART A: FINANCIAL ACCOUNTABILITY AND LIABILITY

SECTION 2 - EMPLOYEE FINANCIAL LIABILITY FOR LOSSES

2.1 Principle of Financial Accountability

2.1.1 Employee is financially liable for losses caused to Company through:

(a) Negligence, recklessness, or carelessness in performing duties

(b) Fraud, dishonesty, theft, or misappropriation

(c) Willful misconduct or intentional wrongdoing

(d) Violations of Company policies, procedures, or instructions

(e) Breach of confidentiality, IP obligations, or restrictive covenants

(f) Failure to exercise reasonable care and skill expected of position

2.2 Types of Compensable Losses

2.2.1 Employee may be held liable for:

(a) Client Penalties and Damages: Penalties imposed by clients due to employee's failure to meet deadlines, quality standards, or contractual obligations

(b) Project Failures: Financial losses from failed projects caused by employee negligence or misconduct

(c) Equipment Damage or Loss: Cost of damaged, lost, or stolen Company equipment (laptops, phones, devices)

(d) Unauthorized Expenses: Expenses incurred without authorization or in violation of expense policy

(e) Data Breach Costs: Costs arising from data breaches caused by employee's security violations (forensics, legal, remediation, client compensation)

(f) Theft or Misappropriation: Value of funds, property, or assets stolen or misappropriated

(g) Fraudulent Claims: Amounts falsely claimed (expenses, reimbursements, hours worked)

(h) Third-Party Claims: Damages Company must pay to third parties due to employee's actions

(i) Legal and Investigation Costs: Costs incurred investigating or defending employee misconduct

(j) Loss of Revenue: Revenue lost due to employee's negligence or violation of non-solicitation obligations

2.3 Standard of Care Required

2.3.1 Employees must exercise:

(a) Reasonable care and skill appropriate to their position and experience

(b) Diligence and attention to assigned responsibilities

(c) Good faith and honesty in all business dealings

(d) Compliance with Company policies, procedures, and instructions

(e) Professional judgment and prudence in decision-making

2.3.2 Failure to meet this standard resulting in financial loss = employee liability.

2.4 Liability for Negligence

2.4.1 Employee is liable for losses caused by negligence including:

(a) Professional Negligence: Failure to perform work to acceptable professional standards

(b) Missed Deadlines: Failure to meet project deadlines causing client penalties

(c) Quality Issues: Delivering sub-standard work requiring rework or causing client dissatisfaction

(d) Security Negligence: Failure to follow security protocols causing data breach

(e) Asset Negligence: Careless handling causing damage to equipment

(f) Financial Negligence: Errors in financial transactions or expense reporting

2.4.2 Liability attaches if:

(a) Employee owed duty of care

(b) Employee breached that duty through negligence

(c) Breach directly caused financial loss to Company

(d) Loss was reasonably foreseeable

2.5 Liability for Fraud and Dishonesty

2.5.1 Employee is fully liable for losses from:

(a) Fraudulent expense claims or timesheet entries

(b) Theft, embezzlement, or misappropriation of funds

(c) Falsification of records or documents

(d) Acceptance of bribes or kickbacks

(e) Diversion of Company business opportunities for personal gain

(f) Misrepresentation or concealment of material facts

2.5.2 No limitation on liability amount for fraud or dishonesty.

2.6 Liability for Policy Violations

2.6.1 Employee is liable for financial losses resulting from:

(a) IP and Confidentiality Breaches: Liquidated damages ₹10-50 lakhs plus actual losses

(b) Non-Solicitation Violations: Liquidated damages ₹5-25 lakhs plus revenue lost

(c) Security Policy Violations: Data breach costs and client penalties

(d) Moonlighting: Damages for breach of exclusivity and conflicts of interest

(e) Expense Policy Violations: Unauthorized expenses incurred

(f) Other Policy Breaches: Direct financial consequences of violations

SECTION 3 - CLIENT PENALTIES AND PROJECT FAILURES

3.1 Liability for Client Penalties

3.1.1 If client imposes penalties on Company due to employee's:

(a) Failure to meet project deadlines

(b) Delivery of sub-standard or defective work

(c) Breach of client confidentiality or security requirements

(d) Violation of client policies or contractual obligations

(e) Professional negligence or misconduct

3.1.2 Employee may be held liable for:

(a) Penalty amount imposed by client

(b) Revenue lost from contract termination

(c) Legal fees defending client claims

(d) Remediation costs to correct defects

3.1.3 Liability determination considers:

(a) Whether employee had control over outcome

(b) Whether employee exercised reasonable care

(c) Whether failure was within employee's scope of responsibility

(d) Proportionate contribution if multiple employees involved

3.2 Liability for Project Failures

3.2.1 Employee responsible for project or deliverable is liable if failure caused by:

(a) Negligent or sub-standard work performance

(b) Abandonment of responsibilities

(c) Failure to communicate risks or issues

(d) Violation of project protocols or methodologies

(e) Unauthorized changes or decisions

3.2.2 Recoverable losses include:

(a) Costs incurred on failed project

(b) Client penalties or damages

(c) Cost of engaging replacement resources

(d) Revenue lost from contract cancellation

3.3 Incomplete Assignments Upon Resignation

3.3.1 If employee resigns during critical project phase:

(a) Employee must serve full notice period to ensure transition

(b) Company may refuse payment in lieu of notice if project criticality demands

(c) Employee may be liable for transition costs if abandons project

(d) See Separation & Exit Management Policy for notice obligations

SECTION 4 - RECOVERY MECHANISMS

4.1 Salary Deduction (Payment of Wages Act Limits)

4.1.1 Company may recover losses through salary deduction subject to Payment of Wages Act, 1936 limits:

(a) Maximum deduction: 50% of wages per month

(b) Prior written notice to employee of deduction and reasons

(c) Employee right to contest deduction through grievance process

(d) Deduction continues until full amount recovered or employment ends

4.1.2 Statutory permitted deductions include:

(a) Damage or loss to Company property caused by employee negligence

(b) Recovery of loans, advances, or overpayments

(c) Amenities and services provided by Company

(d) Recovery as authorized by employee in writing

4.1.3 For losses exceeding recoverable amount through salary:

(a) Employee required to sign promissory note or acknowledgment of debt

(b) Company may pursue legal recovery after separation

4.2 Final Settlement Adjustment

4.2.1 Upon employment termination, Company may recover from final settlement:

(a) Outstanding liabilities and damages

(b) Unreturned or damaged asset costs

(c) Notice period shortfall or buyout amounts

(d) Unserved training bond obligations

(e) Any other amounts due to Company

4.2.2 Order of recovery from final settlement:

(a) Notice period shortfall

(b) Asset replacement costs

(c) Training bond amounts

(d) Other liabilities and damages

(e) Remaining amount (if any) paid to employee

4.3 Security Deposit and Bond Forfeiture

4.3.1 If employee provided security deposit or bond:

(a) Company may forfeit deposit to recover losses

(b) Forfeiture proportionate to loss or liability

(c) Remaining amount refunded after adjustment

4.3.2 Training bonds:

(a) Forfeited if employee leaves before service period completion

(b) Pro-rata recovery based on unserved period

(c) See Training Bond & Service Agreement Policy

4.4 Legal Recovery Actions

4.4.1 For losses not fully recoverable through salary deduction or settlement, Company may:

(a) File civil suit for recovery of damages

(b) Obtain judgment and execute against employee's assets

(c) Garnish wages from new employer (through court order)

(d) Report to credit bureaus affecting employee's credit rating

(e) File criminal complaints for theft, fraud, or embezzlement

4.4.2 Employee is liable for:

(a) Principal loss or damage amount

(b) Interest at applicable rate from date of loss

(c) Legal fees and court costs on indemnity basis

(d) Collection and enforcement expenses

4.5 Contribution from Insurance or Third Parties

4.5.1 If loss covered by insurance or recoverable from third party:

(a) Company pursues insurance claim or third-party recovery first

(b) Employee liable only for unrecovered amounts or deductibles

(c) If employee's intentional misconduct voids insurance, full liability applies

PART B: ASSET MANAGEMENT AND ACCOUNTABILITY

SECTION 5 - COMPANY ASSETS AND PROPERTY

5.1 Types of Company Assets

5.1.1 Company assets include:

(a) IT Equipment: Laptops, desktop computers, monitors, keyboards, mice

(b) Mobile Devices: Company-issued phones, tablets, smartwatches

(c) Access and Security: ID badges, access cards, security tokens, keys

(d) Peripherals: Printers, scanners, external drives, docking stations

(e) Software Licenses: Licensed software, subscriptions, cloud services

(f) Office Equipment: Furniture, stationery, office supplies

(g) Vehicles: Company cars or vehicles (if issued)

(h) Books and Materials: Technical books, training materials, documents

(i) Client Property: Equipment, materials, or data entrusted by clients

(j) Any Other Property: Owned or leased by Company and issued to employee

5.2 Asset Issuance and Acknowledgment

5.2.1 Upon asset issuance, employee must:

(a) Sign asset acknowledgment form or digital record

(b) Verify asset condition and report any pre-existing damage

(c) Record asset details (serial number, model, specifications)

(d) Acknowledge responsibility for care and return

(e) Acknowledge liability for damage, loss, or non-return

5.2.2 Asset records maintained by IT/Admin:

(a) Asset register with employee assignment

(b) Issuance date and condition

(c) Return date and condition

(d) Damage or loss incidents

5.3 Employee's Duty of Care for Assets

5.3.1 Employee must:

(a) Exercise reasonable care in handling and using Company assets

(b) Use assets only for authorized business purposes

(c) Protect assets from theft, damage, loss, or misuse

(d) Not allow unauthorized persons to use Company assets

(e) Store assets securely when not in use

(f) Follow manufacturer's instructions and Company usage guidelines

(g) Report malfunctions or issues promptly to IT/Admin

(h) Not make unauthorized modifications or repairs

5.3.2 For laptops and mobile devices specifically:

(a) Keep devices password-protected and encrypted

(b) Install Company-required security software

(c) Apply security updates and patches promptly

(d) Not jailbreak or root devices

(e) Secure devices when traveling

(f) Not leave devices unattended in public places or vehicles

(g) Use protective cases and screen protectors

5.4 Restrictions on Asset Use

5.4.1 Employees shall NOT:

(a) Use Company assets for personal business or gain

(b) Lend or transfer Company assets to others without authorization

(c) Remove assets from premises without approval (if applicable)

(d) Sell, pawn, or encumber Company assets

(e) Install unauthorized software or make system changes

(f) Use assets for illegal activities or policy violations

(g) Alter, deface, or remove Company identification from assets

SECTION 6 - ASSET DAMAGE AND LOSS

6.1 Reporting Damage or Loss

6.1.1 Employee must immediately report to IT/Admin:

(a) Damage to Company assets (accidental or otherwise)

(b) Loss or theft of Company property

(c) Malfunction affecting asset usability

(d) Any incident that may affect asset condition or security

6.1.2 Report must include:

(a) Description of asset and identifying details

(b) Circumstances of damage or loss

(c) Date, time, and location of incident

(d) Whether police report filed (for theft)

(e) Any witnesses or supporting documentation

6.1.3 Timely reporting:

(a) Damage: Within 24 hours of occurrence

(b) Loss/Theft: Immediately upon discovery

(c) Delayed reporting may increase employee liability

6.2 Liability for Asset Damage

6.2.1 Employee is liable for asset damage if caused by:

(a) Negligence, carelessness, or recklessness

(b) Misuse or use beyond authorized purposes

(c) Failure to follow usage guidelines or instructions

(d) Willful damage or destruction

(e) Unauthorized modifications or repairs

6.2.2 Employee is NOT liable for damage if:

(a) Normal wear and tear from authorized business use

(b) Manufacturing defect or product failure (within warranty)

(c) Damage during authorized Company activity beyond employee's control

(d) Act of God or unavoidable accident with no negligence

6.2.3 Burden of proof:

(a) Company must establish negligence or misuse for liability

(b) Employee may provide evidence of proper care and use

6.3 Liability for Asset Loss or Theft

6.3.1 Employee is liable for lost or stolen assets if loss resulted from:

(a) Negligence in securing or protecting asset

(b) Leaving asset unattended in public place or vehicle

(c) Failure to lock or secure asset

(d) Lending asset to unauthorized person

(e) Violating asset security guidelines

6.3.2 Employee is NOT liable if:

(a) Asset stolen despite reasonable security precautions

(b) Theft during armed robbery or unavoidable circumstances

(c) Loss due to Company's failure to provide security

(d) Employee can demonstrate exercise of reasonable care

6.3.3 For theft claims, employee must:

(a) File police report/FIR within 24 hours

(b) Provide copy of police report to Company

(c) Cooperate with investigation

(d) Failure to file police report = presumption of negligence

6.4 Assessment and Recovery of Asset Costs

6.4.1 For damaged or lost assets, Company will determine:

(a) Current market value or replacement cost

(b) Depreciated value based on age and condition

(c) Repair cost (if repairable)

(d) Employee's liability percentage based on negligence level

6.4.2 Recovery amount:

(a) Full replacement cost for new assets (less than 1 year old)

(b) Depreciated value for older assets

(c) Repair cost if less than replacement value

(d) Reduced by any insurance recovery

6.4.3 Depreciation schedule (straight-line):

(a) Laptops/Computers: 33% per year (3-year life)

(b) Mobile phones: 50% per year (2-year life)

(c) Peripherals: 25% per year (4-year life)

(d) Minimum residual value: 10% of original cost

SECTION 7 - ASSET RETURN UPON SEPARATION

7.1 Mandatory Return Obligation

7.1.1 Upon employment termination (resignation, retirement, termination), employee MUST return:

(a) All Company-issued IT equipment and devices

(b) ID badges, access cards, keys, and security tokens

(c) Company credit cards, fuel cards, or payment instruments

(d) Books, documents, files, and materials

(e) Office keys, locker keys, or other access devices

(f) Any other Company property in employee's possession

7.1.2 Return deadline:

(a) On or before last working day

(b) During exit formalities and asset handover process

(c) All items returned in working condition

7.2 Asset Return Process

7.2.1 During exit process:

(a) IT/Admin team provides asset return checklist

(b) Employee returns each asset and obtains signed acknowledgment

(c) IT verifies asset condition and functionality

(d) Any damage or missing items documented

(e) Employee signs asset clearance certificate

7.2.2 Data wiping and security:

(a) IT team wipes all Company data from devices

(b) Employee must delete Company data from personal devices

(c) Confirm no Company information retained

(d) Disable access to Company systems and accounts

7.3 Liability for Non-Return

7.3.1 If employee fails to return Company assets:

(a) Full replacement cost deducted from final settlement

(b) Police complaint filed for theft/misappropriation

(c) Legal action for recovery

(d) Negative reference and disclosure to prospective employers

(e) No relieving letter or experience certificate until return

7.3.2 Liquidated damages for non-return:

(a) In addition to asset value, liquidated damages may apply

(b) Amount: ₹10,000 to ₹1,00,000 per unreturned item depending on value

(c) Compensates Company for administrative costs and inconvenience

7.4 Return of Damaged Assets

7.4.1 If assets returned in damaged condition:

(a) Repair cost or depreciated replacement value charged

(b) Assessed based on damage extent and cause

(c) Deducted from final settlement

7.4.2 Normal wear and tear exempted if:

(a) Asset used for authorized period

(b) Damage consistent with reasonable business use

(c) No evidence of negligence or misuse

SECTION 8 - SOFTWARE LICENSES AND DIGITAL ASSETS

8.1 Software License Accountability

8.1.1 Employee assigned software licenses or subscriptions must:

(a) Use licenses only for authorized business purposes

(b) Not share login credentials with others

(c) Not transfer licenses to personal accounts

(d) Not exceed authorized usage limits

(e) Return or deactivate licenses upon separation

8.1.2 Liability for license violations:

(a) Employee liable for costs if license revoked due to misuse

(b) May include vendor penalties, legal fees, replacement costs

8.2 Cloud Storage and Digital Assets

8.2.1 For Company cloud storage accounts (Google Drive, OneDrive, etc.):

(a) Employee must not store personal files in Company storage

(b) Must not share Company storage with unauthorized persons

(c) Must properly organize and maintain Company files

(d) Upon separation, all files transferred per exit process

(e) Personal data removed, Company data retained

SECTION 9 - SPECIAL CIRCUMSTANCES

9.1 Remote Work and Work-From-Home Assets

9.1.1 For employees working remotely:

(a) Same asset care and security obligations apply

(b) Must ensure home network security

(c) Must provide secure storage for Company equipment

(d) May be required to return assets periodically for inspection

(e) Transportation risk for asset return borne by employee unless Company arranges

9.2 International Travel with Company Assets

9.2.1 Employee traveling internationally with Company assets must:

(a) Obtain written approval before travel

(b) Carry asset documentation for customs

(c) Ensure adequate insurance coverage

(d) Exercise heightened security precautions

(e) Report any incidents immediately

9.2.2 Liability for loss during international travel:

(a) Full liability if loss due to negligence

(b) Reduced liability if adequate precautions taken

9.3 Asset Upgrades and Replacements

9.3.1 When asset upgraded or replaced:

(a) Old asset returned before new asset issued

(b) New asset acknowledgment signed

(c) Ongoing accountability for new asset

(d) No liability for old asset after proper return

SECTION 10 - ENFORCEMENT AND CONSEQUENCES

10.1 Disciplinary Action for Asset Violations

10.1.1 Asset misuse, damage, or loss may result in:

(a) Written warning for minor incidents

(b) Financial liability as per this policy

(c) Suspension pending investigation

(d) Termination for serious violations including:

• Theft or misappropriation of assets
• Willful damage or destruction
• Selling or pawning Company property
• Repeated negligence causing losses

10.1.2 See Disciplinary Action & Penalties Policy for procedures.

10.2 Criminal Prosecution

10.2.1 Asset theft or misappropriation may result in:

(a) Police complaint and FIR

(b) Criminal prosecution under IPC (theft, criminal breach of trust)

(c) Concurrent civil recovery action

(d) Company pursues criminal and civil remedies simultaneously

10.3 Credit and Employment References

10.3.1 Unreturned assets or unpaid liabilities may affect:

(a) Employment verification and references

(b) Issuance of relieving letter or certificates (withheld until clearance)

(c) Disclosure to prospective employers upon reference check

(d) Credit rating if legal action pursued

SECTION 11 - EMPLOYEE ACKNOWLEDGMENT

11.1 Acknowledgment of Liability

11.1.1 By accepting employment and Company assets, employee acknowledges:

(a) Understanding of financial accountability for losses caused

(b) Responsibility for care and return of Company assets

(c) Liability for damage, loss, or non-return per this policy

(d) Consent to salary deduction for recovery (within legal limits)

(e) Consent to final settlement adjustment for liabilities

(f) Understanding that violations may result in termination and legal action

11.2 Annual Asset Certification

11.2.1 Company may require employees to annually certify:

(a) Assets in their possession

(b) Condition of assets

(c) No unreported damage or loss

(d) Compliance with asset care obligations

SECTION 12 - CONTACT INFORMATION

12.1 Asset Management

IT & Administration Department:
Email: admin@webreinvent.com
For asset issues, damage reports, returns

12.2 Financial Liability Questions

Finance Department:
Email: finance@webreinvent.com
For questions about deductions, recovery, liability

12.3 Policy Questions

Human Resources Department:
Email: hrd@webreinvent.com