Understanding Latecomer Policies: Can We Deduct Wages or Leave Under the Factories Act?

Policy for Latecomers

Some of the existing procedures followed are:
- 3 days late: 1/2 (half-day deduction from wages/leaves)
- More than 3 days: Warning letter

Can we deduct wages/salary for latecoming? What is the policy in the Factories Act, etc.? Can we deduct leave from PL for latecoming? What are the provisions of the act? Can we send back an employee for one particular day if he is late by 30 minutes?

The senior's response shall be highly appreciated.

Regards,
Ram

As per my knowledge, there is no specific provision for late coming in The Factories Act 1948. However, in The Industrial Standing Orders Act 1946, there are some clauses which may be used for procedural action against late coming.

First of all, there is no legal clause to deduct half a day or a full day due to late coming by employees. These may be policies defined by management under their disciplinary code for the organization. Yes, as per model standing orders (Industrial Standing Orders Act), if an employee is late on four occasions in a month, their actions may be considered as 'Misconduct,' and the concerned employee will be eligible for further disciplinary action.

Usually, in most organizations, there are different actions taken against employees for late coming.

Suggestions for Handling Late Coming

I would like to suggest a few things:

1. The employee who is late on four occasions may immediately be warned through a warning letter.

2. If the employee is late more than four times, they will be asked to provide a cause for the misconduct. If satisfactory reasons are not provided, they may be warned with a Severe Warning letter.

3. If the employee continues to be late, they will be asked for a Show Cause and may face further strict disciplinary action such as suspension for up to four days.

4. Alternatively, you can have policies for the deduction of present hours/leaves, for example:
- Up to four occasions in a month: No deduction from salary
- More than four and up to eight occasions in a month: Half a day of Casual leave (not PL or SL)
- More than eight occasions in a month: One full day of Casual leave (not PL or SL)

5. Implement these rules as a policy and circulate them throughout the premises so that employees are aware. This will ultimately help in reducing late coming.

I believe this approach will work for you.

Regards,
Atul S Malve
Manager - HR & Admin

As such, there is no policy in the Factories Act; all deductions are governed by the Payment of Wages Act. I am mentioning below the exact wording of the Factories Act. If you need a late-coming policy, then let me know.

INDUSTRIAL EMPLOYMENT (STANDING ORDERS) CENTRAL RULES, 1946

Notification No. L.R. 11 (37), dated the 18th December, 1946

8. Attendance and late coming. - All workmen shall be at work at the time fixed and notified under Paragraph 4. Workmen attending late will be liable for the deductions provided for in the Payment of Wages Act, 1936.

*NOTE*: All workmen shall have to do the work in the establishment at the time fixed and notified under Para 4. There is a provision for deduction in the payment if someone arrives late according to the Payment of Wages Act, 1936.

Regards,
Pradeep

Understanding Employee Tardiness

Don't fire your employee; try to understand why they are coming late every day. What is the reason?

Regards

With reference to your query, late coming shall not be accepted under the rules of discipline. Based on genuine conditions and circumstances, the management may allow permission for late coming. Disciplinary action will be taken under the provisions of the Industrial Employment (Standing Orders) Act - 1947. If your organization has more than 50 employees, you can frame the standing orders to be certified by the Certifying Officer of the said act; otherwise, you will need to follow the provisions under the Model Standing Orders.

There is no specific provision or policy in the Factories Act for late coming.

I agree with the opinion that Mr. Pradeep has suggested.

Regards,
V R RAO PULIPAKA.

I endorse Atul's view. To supplement, the provision regarding the deduction of wages for late coming is provided in the Payment of Wages Act, which allows for proportionate deduction (Section 9). Moreover, such provisions exist in Standing Orders. If you have a Certified Standing Order, please look for provisions regarding payment of wages/attendance, late coming, shift duty, etc. You would find the provision.

In case there is no provision or in the absence of a clear-cut provision anywhere, administrative instructions need to be issued informing all employees about this computation formula. There is no fixed formula like a 1/2 day C.L. deduction for every three times late coming or five times. These are administrative instructions and have to be issued to all employees before implementing.

Hope you find this informative.

Regards,
KK Nair

I have been working in Rolling Mill and Sponge Iron units for quite some time now. I have also found late-coming habits to be a problem that keeps spreading from one employee to another. It's not the same person all the time, but someone is late every day, which reduces the actual man-hours I can get on the shop floor.

Implementation to Reduce Late Arrivals

What I implemented in my company was not actually a deduction. The names of the late entrants were listed on the notice board daily. This was a moral shame and reduced late arrivals by around 40%. There are still exceptional cases with genuine reasons. We still have a long way to go.

Warm Regards,
Liboy Bonny

[Phone Number Removed For Privacy Reasons]

I agree with Mr. Atul. However, you need to identify the reasons behind the issue and attempt to resolve the problem if possible from your end. The location of your company and the transportation facilities should be taken into consideration before any actions are taken.

Regards.

Hi, I just want to know about the following:

1. What are the legitimate deductions admissible under the Payment of Wages Act, and what percentage of deduction can be made at one time from the salary of a workman?

Deductions from Wages Under the Payment of Wages Act

Deductions of any kind from wages can only be made as per the Payment of Wages Act 1936, under Section 7(2). However, deductions for absence from duty can only be made as per the above Section 7(2)(b).

Regards,
Ratan Kumar Bhardwaj

Such policies regarding late coming are internal to every company and are not mentioned in the Factories Act. Whatever action you take for any act of indiscipline must adhere to the standing orders (approved by the appropriate government) of the factory.

Late coming is a kind of issue, and the origin of the issue is not necessarily known to treat it. If the issue and its treatment are understood, they can be applied.

Regards,
Octavious

Late Coming Policy Framework

The late coming policy is framed by taking into consideration various reasons like commute, distance, transportation, etc. This can be controlled by implementing a system where if employees arrive late more than three times, they will miss the monthly attendance reward and have points deducted during appraisals. Enforcing this will encourage employees to avoid being late.

Furthermore, if an employee is late more than three times, half a day should be deducted to make them more conscious and ensure they reach the office on time. Warning letters can be issued if an employee repeatedly arrives late every month, indicating that it will affect their yearly appraisals.

Regards,
Harsha.