Imposing Of Fines To Employees - CiteHR
Saswatabanerjee
Partner - Risk Management
Pon1965
Construction
+2 Others

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Our management decides impose fine to employees for not following the procedure,safety rules, not wearing helmet, not following 5s etc., Is it applicable as per act
why traffic police impose penalty for not wearing helmet? Is it against rule?. The same applies. If there is violation, penalty system is there. The amount of fine has to be seen in the relevant Acts.
Pon

Any fine imposed needs to be in line with the requirements of Payment Of Wages Act.
the act says that
1. the fines can not exceed 3% of gross wages
2. the fines must be on the list of fines approved by the appropriate authority and must be listed / prominently displayed
So first, the list of the fines must be approved by the labour officer
Then they must be displayed
I dont think you will get approval of the labour officer for 5S.
For Safety violations, he will mostly allow. I am not sure about procedures.

The company management can impose the fine to employees if they are not following the rules in the company premises. This ensures the safety of their employees.
But why they will impose a fine if they find you at traffic signal without helmet during the office hours?
My new blog on fitness = Health Beauty Fitness

Please read section 5, 6 and 7 of Payment of Wages act.
The company management does not have the right to impose a fine at its will.
The list of fines needs to be approved by the authority under the act.
Any fine not approved is illegal deduction under payment of wages act.
This rule applies irrespective of whether deduction is from salary or whether it has been paid separately

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