[Company Logo][Company Name]
- Ref. No.:
- [Reference Number]
- Date:
- [Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Show Cause Against Proposed Deduction for Loss / Damage
Dear [Employee Name],
On [DD/MM/YYYY], [factual description, e.g. the company laptop, Asset No. ___, issued to you was found damaged / a cash shortage was found at the counter handled by you]. Based on [inspection report / audit / your statement dated DD/MM/YYYY], it appears that the loss was caused by [specific neglect or default, e.g. leaving the laptop unattended in an unlocked vehicle, contrary to the IT Asset Policy].
The loss has been computed as follows:
| Item | Basis | Amount (₹) |
|---|
| [Repair / replacement / shortage] | [Vendor quote / audit report] | [Amount] |
| Less: insurance recovery, if any | [Basis] | [Amount] |
| Net amount proposed to be recovered | | [Amount] |
In accordance with the company's [Policy Name] and applicable wage law, the company proposes to recover the above amount in [Number] monthly instalments of ₹[Amount] from your wages for [Months].
Before any deduction is made, you are given an opportunity to show cause in writing, within [Number] days of receipt of this notice, why this recovery should not be made, or to propose a different amount or schedule with reasons. Your reply will be considered and a final decision communicated in writing. No deduction will be made until then.
Employee's consent (optional)
I have read this notice. I [agree / do not agree] to the recovery of ₹[Amount] in [Number] instalments as stated above. I confirm that this choice is voluntary.
For
[Company Name][Authorised Signatory][Designation]Employee
[Employee Name]Date:
[Date]