Are Employee Fines for Safety and Procedure Violations Legal? Let's Discuss

Our management has decided to impose fines on employees for not following procedures, safety rules, not wearing helmets, not adhering to 5S, etc. Is this applicable as per the act?

Why Do Traffic Police Impose Penalties for Not Wearing Helmets?

Is it against the rules? The same applies if there is a violation; the penalty system is there. The amount of the fine has to be seen in the relevant Acts.

Regards, Pon

Compliance with the Payment of Wages Act

Any fine imposed needs to be in line with the requirements of the Payment of Wages Act. The act states that fines cannot exceed 3% of gross wages. The fines must be on the list of fines approved by the appropriate authority and must be listed or prominently displayed.

So, first, the list of fines must be approved by the labor officer. Then, they must be displayed. I don't think you will get approval from the labor officer for 5S. For safety violations, he will likely approve. I am not sure about procedures.