Dear Aravind, If a few employees have reported late for their duties, you may give them a warning letter. After three warning letters, you may deduct half a day's salary. These provisions are mentioned in the Payment of Wages Act. However, withholding a month's salary is too harsh a punishment.
Maintaining Workplace Discipline
Your concern for maintaining workplace discipline is commendable, but withholding salary for tardiness is like using a sledgehammer to kill a fly. It is worth reminding that India will soon complete 68 years of independence. India upholds the rule of law, which applies not only to government authorities or members of the judiciary but also to common citizens. Therefore, every action or decision you take must comply with the relevant laws. Frivolity has no place in the administration. Even during the colonial era, the British enforced the rule of law. Thus, withholding salaries echoes practices from a bygone era. It is imperative for you to update yourself on the stipulations of various labor laws for the betterment of your career.
Thanks,
Dinesh Divekar