Fine On The Employees

Hi All :) ,
Well my problem is tht in my company, which is a construction company, we fine the employees a lot for whetever mistakes they do. For example , if the accounts department has done a mistake it could be a minor or a major mistake and if the management has noticed it , then they fine the employee or deduct certain amount it
from the salary.
I strongly feel this kind of practise should be reduced as its not fair for the employees and there r other ways also by which u can make ur employes realise about their mistakes.
Plz people i really require sum suggestions/ advice on the same . i do not want my employees to suffer like tht as here in my city employees arnt highly paid.
Regards
Preeti...

hi
The imposition of fine is not prevalent in many companies as 'term fine' has come to stay.This was more prevalent a few decades back/The imposition of fine amount is covered under the PAYMENT OF WAGES ACT backed by the INDUSTRIAL EMPLOYMENT STANDING ORDER ACT.
The fine amount has to be recovered and deposited with the Labour welfare fund.
Considering the obnoxious ways it goes to recover, the practical stick used is the replacement [full/part] of the product for which fine is envisaged.
Now for mistakes it would be without 'considered rationale to impose a fine.The matter would best be addressed at appraisals and increment,and in extremes transferor termination.
hrg-rajaram

Hi,
I'm surprised that some companies still following this policy of fine.
I would like to ask you one question though, what is the attrition rate in your company? As I find it difficult for people to stay in a company where they deduct the amount from your salary.
Dear, I hope you will be able to make a proposal and put it in front of your Management, they should stop this practice for long term, try and convince them, if you need any help on how to make proposal take help from citehr.
Hope you'll be successful.
Archna

Hey PPl,
PLz repond back with few more suggestions , as i m realy looking for a solution to the problem which is troubling all my employees....
Thanks
Regards
Preeti...

hi preethi

I have a suggestion for you.

If any employee makes a mistake which your management feels to be fined. you can raise a non-tolerance flag against such employee who has committed a mistake in few of the heads suggested below.

1. Punctuality violations

5. Indifference to requests

etc.

Then the names of such employees can be maintained in an excel sheet or a register. In Future when such employee's appraisal time comes, if you have a system for appraisal wherein the superiors put their marks 1-10 for the employee then such marks can be reduced by 5-10% as non-tolerance penalty.

Benefits

Employee's side:

In such system the employees will not feel pained and will not have to pay fine from their pocket

Employer's side:

if any employee had to get an increment of 15% then such employee who was raised a non-tolerance flag will get only 13.75% where your management will also feel that the mistakes are not bared @ company's cost.

Note: If any mistake is small in terms of cost or damage to the company then i suggest you to raise the non-tolerance for the mistakes repeated. In that way even the employees feel that the Management is behaving good towards the employees.

Hope this works for you.

If you are not clear please mail me @ [Login to view] or call me at 0 98860 40246

regards

kiran

"I strongly feel this kind of practise should be reduced as its not fair for the employees and there r other ways also by which u can make ur employes realise about their mistakes. "
OP, do tell.