Question

Dear All,

I would like to know what do most companies do with unclaimed salaries of employees who have left. Despite sending reminders to contact the company to re-issue a new cheque, the ex-employees still did not show up. I do not think I can return the amount to the company books right? Do I need to keep it for a specified number of years? Can I donate the amount to a charity or use it for staff welfare fund especially if it has been more than 3 years already?

Thank you.

Li Cheng

Reply 1

Keep all supporting tracking attempted records and contacting documentation as proof like date and time of registered mail calls made and print out of emails, etc.

Unclaimed staff salaries are under company’s audit. Proper record and evidence are pivotal. When all efforts are exhausted, then seek your finance dept advise if it could be written as uncollected monies under the Company’s account and close at end of FY.

Eventually, if the company decides to donate to charity, an official receipt must be secured.

Rose