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If an employee is absent, without information to line manager or HR for 1 day. Can we cut his salary for 2 day i.e. double the salary, double penalty. If not under which statuary docs and what can be the fallback?
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First already you are not going to treat that leave as approved. So, there will be one LOP.
If you want to deduct more, that one more day salary amount (as you mention) can be calculated and deducted as "fine" or "other deduction".
As per Statutory compliances, imposing fine is possible. In chennai, I need to record it in Fine Register and I need to submit quaterly returns of fine deducted to TN Labour Welfare Board. As per law, these amounts should be paid to TN Labour Welfare Fund.
Dear Meenakshi,
We cannot do that, as per the provisions of payment of wages act, there are certain deductions allowed and other than that we cannot deduct any wages from an employee. And for the term double penalty, always not justifiable under law and in case if you want to impose any punishment or fine, you can very well do that but need to follow certain procedures as per the provisions of certified standing orders of the company.
Hope this is clear now,
If the employee is not governed by Payment of wages Act ,or MW Act you can do it if permitted by Standing orders.Otherwise you can’t.
Dear Meenakshi,
You cannot deduct an employee's salary for two days for being absence without information for a day unless there is such provisions in the certified standing orders of the company or there is company policy to this extent. If you do this, it will be illegal deduction from his salary for which an employer can be prosecuted.
BS Kalsi
Member since August 2011
Can any one answer my these qurey about minimum wages: Question is : if a Unskilled Worker or Labour joined in a organisation and getting a minimum wages rate per day as per govt rule. and when after some time that is after one or two years definitely he has an ability of skilled labour , and also he is working as a skilled in the same jorganisation , then why he is not paying at the rate of Skilled category of wages . Similarly in the case of skilled category , why not after a period of years after years a skilled labour if he worked at the position of high skilled then why he is not getting high skilled wage rate as per the govt rule.
Contact no: 9097188247
Hi Meenakshi,
A question of commonsense for you and your HR, can HR pay salary of two months to each employee for their one month's work? If not, why cut of salary for two days for the absence of one day?
HR can't act arbitrarily. You don't have any right under any law to deduct two days leave or salary for one day's absence.
Hi Dhingra,
Just asking a general question, If imposing Fine is possible as per "Payment of Wages Act" upto 3% of the wages, why it should not be implemented to control the uninformed absenteeism? Uninformed absenteeism affects production, project delivery and other losses to the employer.
Fine can be imposed, but you need to give him reasonable opportunity to explain his case. That means a formal show cause notice for his absenteeism.
If his explanation is not acceptable we can impose punishments including fine. Keep in mind that quantum of all punishments should be in proportionate with misconduct.
Mr. Saravanan,
Had you asked for my opinion, as per the provisions made in your CSO, I would have been much pleased to provide my opinion.
In labour and service laws there is no exception to use discretion of the management. Penalty is something else, but that too needs to be included in the Standing Orders, not to be imposed arbitrarily merely at the discretion of some negative minded HR personnel. You can include even 3 or 5 days cut of salary for one day's absence in the Standing Order, but with due consent of the respective trade union and finally on the satisfaction of the certifying authority, but no conventional or arbitrary penalty can be imposed on any worker.
No doubt uninformed absenteeism affects production, project delivery and other losses to the employer, but if that happens, that clearly vindicate about the incapability and incapacity on the part of the management for inapt handling of the situation or by keeping imperfect conduct and discipline rules.
A pertinent question arises, what for the managers are appointed to over see, manage or control the work & conduct of the workers or to see the productivity unaffected?
Mere punitive measures of the management, that too conventional, can't ensure production, project delivery or cut in losses to the employer. Rather that tends to workers unrest that sometimes become unmanageable to control on the part of the management. Only a positive attitude of the management can ensure productivity and discipline on the part of the employees.
Mr. Dhingra, You still haven’t answered by direct question. If provision of applying Fine is available in Act, why it should not be implemented? I agree with the suggestion of Ramesan.
Mr. Saravanan,
It seems, you have not read my post properly, where I have very clearly written, "You can include even 3 or 5 days cut of salary for one day's absence in the Standing Order, but with due consent of the respective trade union and finally on the satisfaction of the certifying authority, but no conventional or arbitrary penalty can be imposed on any worker."
If you want reply specifically aimed at fine of 3% of wages, that does not entail deduction of double of the due salary of the employee in the absence of any description in the CSO. Any fine should clearly be represented through CSO, not to be imposed arbitrarily at the whims & fancy and power veilding manner by the HR. In anyway 3% of wages won't work out even for a single day's wage, what to speak of 2 days wage.
Mr. Dhingra,

For your kind information 3% wages comes to one day wage. Already one day will be reduced in his attendance for his unapproved/uninformed leave (His working day will be 29, instead of 30). It will be discretion of the management to decide about fine (one day salary or fixed amount less than one day salary).

Do you think HR can decide about fine? Each & every decision will be decided by the management. Without those, HR has to answer the Finance department. It will be problem during Audit.

As you are mentioning, HR will not only concentrate on imposing fine, as they are also responsible for attrition which is their main performance criteria. Please keep in mind, imposing fine doesn't count on the performance of an HR. He/she will not get salary increment/promotion only because they are imposing fine to employees. Imposing fine will lead them to answerable to Employee, Department Manager, finance dept, statutory dept and management.

How many HR do you know, who impose fine only because of the instruction from Management and they worry for the employees??
Mr. Saravanan,
A very smart move to evade from the main issue! Your problem seems to be either you try to read between the lines, or assume anythhing at your own.
Anyway, you are free to live with your own perception, if you believe that 3% wages comes to one day wage, as if a month constitutes 33.333 days, instead of 28, 29, 30 or 31 days.
Did I say anywhere that delegations need not be followed?
Also, do you believe that if the CSOs contains the provision of fines on the employees that would always need financial advice, if delegations already stand made to the HR or DDO?
Reality should not be tried to be discarded.
Dear Pathak ji,
I haven't come across any provision in the Minimum Wage Act, 1948 or any government orders where such promotions are allowed changing the skill category of workers. Although I came across some of minimum wages notifications of some States, where they have specific instructions to place an unskilled worker in semi-skilled after three years and a semi-
skilled worker in the skilled category after three years.
You can check the notifications of state govt where Minimum Wage are revised from time to time.
BS Kalsi
Member since August, 2011
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