Dear seniors and experts, We are from textiles industries and iam working as a HR manager at tamilnadu.
my query is about the late deduction on employee's salary , let me know that it is legal or offense.
our work starting hour is 09:30
closing hours is : 06:30
lunch timing : 01.30 to 02.30
morning tea time 10 mins
evening tea time 10 mins.
We also give 1 hour grace period all employee's every month. if some one cross the 1 hour we deduct the salary for remaining hours only .
i mean if some one came late 01.30 hours per month, we are deduct only for 30 mins.
As per act is this is legal or not, and also in which name we deduct the late amount in salary and how to show in payslip,
can we name as other deduction or LOP deduction (in mins)?
we have some social compliance audit, so if we deduct, there is any problem will rise or not.
kindly give the solution on this issue.

From India, Madurai
Ed Llarena, Jr.
Owner/ Managing Partner
+1 Other

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You can deduct on late coming employee on head of attendance, provided you have the policy to which your employee are known. Similiarly, your employee may ask for over time if they are being put on work beyond 6.30pm.
From India, Mumbai

Dear prabhat ranjan mohanty , thank you very much for your response and advise , we will keep it up as you said. many thanks Regards pandian
From India, Madurai

In my company we have the following revised salary structure
Basic + DA = 45 %
HRA = 18 %
Washing = 10 %
Conveyance = 800/- month
Education allow = 200 /- month
other allowance = Remaining balance (to adjust)
now we are planning to deduct EPF only for Basic + DA, ( because we are cover all employee's to PF)
whether it is ok as per EPF act or any problem will arise.
Advise please dear seniors and experts.

From India, Madurai

Dear Friend, Greetings! As far as legal purview, there is not any provision about the same. This is as per company’s individual HR policy. So, you can go on whatever you r doing. Rgds
From India, Delhi
Ed Llarena, Jr.

The principle of "NO WORK NO PAY" is the general norm in private business employment. It mandates that any UNWORKED TIME must be unpaid. This principle becomes the legal basis for deductions on "tardiness/ late" and "undertime" that employees may incur during a certain pay period. Unless the country's labor law specifically prohibits any deduction, then the company can create a policy relative to its enforcement. But the general rule worldwide is: YOU CAN ONLY DEDUCT the actual prorated value of the unworked time. The giving of "grace period" (e.g. one hour per pay period) is an act of generosity on the part of the company. For proper monitoring, the pay slip must reflect the total number of tardiness/ undertime and the equivalent hourly/ per minute prorated value of the employee (based on his current salary) to be able to clearly explain the reason behind the amount deducted from the expected monthly/ semi monthly pay. This methodology should be able to avoid questions or confusion on the matter.
Best regards.

From Philippines, Parañaque

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