Return ‘accidental’ bonus or face pay cut later, Honda’s tells employees

The employees can either return the extra amount, or it will directly be deducted from their next pay cheque.

FPJ Web DeskUpdated: Thursday, September 22, 2022, 05:42 PM IST
article-image
AP

Imagine being greeted by a festive bonus in your account, only to be hit by the reality that it was a mistake and you’ll probably need to give it back. Bogged down by the pandemic, global carmakers opted for pay cuts to navigate the crisis, but Honda turned to furloughs. Now that business is back on track in the post-pandemic era, the Japanese carmaker is in the news for asking employees to refund the bonus that it had deposited in their accounts.

Hundreds of Honda employees in Ohio had received the extra amount on their salaries earlier this month, but have now been told that they were overpaid. A memo sent out by the firm cited miscalculation of bonuses behind the accidental pay out, and gave them nine days to refund it. Caught in an embarrassing situation which will affect their families, employees can either return the extra cash or it’ll automatically be deducted from their next pay cheque.

Disappointing but not illegal

Although it’s natural for households to plan those big ticket purchases after receiving a bonus, Honda can legally ask for a refund under the Fair Labour Standards Act.

Not a first

Such incidents have also been reported in India where two digital assistants of a village secretariat were asked to return the entire salary paid to them, because they quit before completing two years in service.

In contrast, a government employee in Spain continued to receive 37,000 Euros every year from a water company, despite an absence of six years from work. After being caught, he had to pay back an amount equivalent to a year’s salary, which was the maximum that his employer could reclaim.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Elon Musk proposes to proceed with his $44 billion Twitter deal: Report

Elon Musk proposes to proceed with his $44 billion Twitter deal: Report

Asia pips the world with over 950 billionaires, Mumbai home to 51 of them

Asia pips the world with over 950 billionaires, Mumbai home to 51 of them

US regulators warns of crypto threatening financial stability, where does India stand on it?

US regulators warns of crypto threatening financial stability, where does India stand on it?

MahaRERA issues notices to 40 lapsed housing projects mostly in Mumbai

MahaRERA issues notices to 40 lapsed housing projects mostly in Mumbai

VideoLAN sends legal notice to DoT and MeitY over blocking VLC in India

VideoLAN sends legal notice to DoT and MeitY over blocking VLC in India