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terry   12 April 2015

Common law of contract for car leasing

The company has started a service for its employees in which it offers that it will procure cars for eligible employees through a leasing company and the EMI of the car will be deducted from the employees salary.

An Employee opted for this service and the company placed the order with the leasing company who paid the amount of registration and road tax to the car vendor. The registration of the car has been done however in the mean while the employee has resigned and has not taken the delivery of the car. Can the company recover the penalty from the employee in this case



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 2 Replies

N R Dash.. (Advocate)     15 April 2015

In the contract it is generally executed that emi & loans are complete liability of the employee not the employer. Employer can only do a favour to the deserving employee by bridging the gap between the seller & buyer by making it ease in paying the emi till he is under their payroll. 

 

If you have not executed this term, then it is a concern for your company only. Read the terms executed in the employee agreement papers.

2 Like

terry   15 April 2015

I have on given email confirmation on a dummy agreement. Not signed any papers.

Will this be treated as execution of contract ?


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