Recovering Costs from employees

[EvianBaby]

We have around 6 employees who are responsible for ordering materials they need to use on sites.

When they order they are supposed to give a reference so when I get the invoices I can apply the costs to specific jobs. Despite me telling them countless times how important it is they often forget or just give their name as a reference. By the time the invoices get to me and I need to apply the costs to jobs the lads can't remember which job they ordered for and I therefore can't recover the cost through a sales invoices. I'm currently sitting in front on several thousand pounds worth of invoices I have no idea of what they were for. (I'll be able to work out most eventually)

My question is, could I legally issue all the employees with a letter informing them that if they don't provide a reference on an order than I then can't apply to a job then I will deduct that sum from their next wage?

In reality I probably wouldn't actually do it, apart from maybe a couple of small ones to scare them, I just need to know the legalities of my 'threat'.

In case anyone is thinking of suggesting they have to get a PO off me first, etc, that simply wouldn't work in our business.

[factor-fiction]

I suggest you look for other solutions first- maybe warnings 9coupled with rewards for those who do it every time).
Or see if these is a change you can make to the process- maybe make them right down something for every order and fill a box in. And tell the people they are ordering from that you will delay paying an invoice if there is no reference on it

[chrissa1]

In our business, we had a "carboned" Purchase order book that was used by our employees and that system worked very well.

Are your employees ordering things on-site by phone? They sound a bit slapdash to me. I'm not sure that you can legally fine them in this way, but some tightening up has to take place.

[ummmm]

Can't you give them their own purchase order books? Or make you own up so you can get the relevant information. What do they do with the delivery notes?

[factor-fiction]

Oh dear, did I type 'right down' rather than 'write down'?

[EvianBaby]

I already tried telling all our suppliers not to accept any orders with no reference. It works for a short time and then it slips again. Some of the companies are huge with lots of different brances so it's not always possible to get the message through to them.

To be honest, I'm not up for the idea of rewarding them for doing what is an extremely simple task they should already be doing. They already get paid above the odds and have pretty cushty work lives in general.

Funnily enough when we told them we weren't going to be generous with paying sick days any more (apart from those we are required to legally) we've barely had a single sick day in the company.

I'd just really like to know the answer to my orignal question if possible.

[EvianBaby]

Trust me, an order book wouldn't work.

Things change on sites all the time so they need to shoot out somewhere to buy something they didn't expect and on a busy day they can each be working on up to five sites. They forget to fill in their time sheets half the time so they're not going to remember to fill in a PO book.

[mccfluff]

do they complete a job sheet - could they use that as the reference number, or write on the job sheet what they ordered, when and from whom?

[factor-fiction]

I would say you would have difficulty enforcing the threat. If an invoice was for £2000 would you consider taking £2000 from their pay. I think the other solutions are preferable but it's your business and your call.

[EvianBaby]

Nope. Only on certain jobs we have to issue them for, which again they forget most of the time.

Trust me, it's just down to them not being that bothered because there are no consequences for them. (as per my sick pay example).

I appreciate other suggestions but I just want to know the legalities of my idea.

[EvianBaby]

Factor, as I said I appreciate other suggestions but I know how the business runs and what they are like. In fairness, they often work 12-15 hour days and are really busy but I'm not asking them to work out Newtons theory of relativity, just say 'H&M Oxford street' when they order something to be used at H&M Oxford St.

In terms of the amount, I could cap it at a couple of hundred quid.

[factor-fiction]

This will help
http://www.direct.gov...ployees/Pay/DG_175878
There are constraints- e.g. you must still leave them with at least minimum wage

[EvianBaby]

Thanks, I'll have a read through it.

[chelle7272]

you can deduct for company expense povoided you give notice, and that the pay they receive after deduction does not go below minimum wage.

[chelle7272]

oh sorry factor beat me to it :)

[2sp_]

What about putting a letter out to all staff saying that failure to comply with proper ordering procedures will result in verbal/written warnings?

I'm sure you'd only have to warn one or two before the rest bucked up.

Must be a right pain in the butt for you. As you say, it's not rocket science for them to just note which job they are ordering materials for.