Can a Company Deduct Pay Without an Inquiry for a Security Staff Mistake?

Dear Seniors, If security personnel working on the company's payroll makes a mistake, as a result of which his senior wants to punish him by deducting half a day's salary (or showing him as present for half a day), even though he was present for a total of 8 hours, can such a punishment be imposed without conducting a domestic enquiry?

First, you need to ensure whether the deduction of wages is a punishment enumerated under the Standing Orders, service rules, or settlements of the establishment. If so, a domestic enquiry needs to be conducted. However, the Standing Orders or service rules of some establishments may dispense with an enquiry for certain acts of minor misconduct. If the case fits into such a rule or order, it can be dispensed with. If it is not a punishment under Standing Orders or rules, the action amounts to administrative action only. In such a case, the establishment needs to ascertain whether the deduction has been effected within the ambit of the Payment of Wages Act, if applicable.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]

In the industry, such mistakes are common. To avoid fear and prevent the repetition of such occurrences, management may impose fines or mark employees as absent for a day or half a day. It is a common phenomenon. There is no need to follow the inquiry procedure. This will be a simple punishment in line with general principles of law.

Regards,
D. Gurumurthy
LL.HR.IR. Consultant
Hyderabad.