How Should Employers Handle Uniform Costs Without Straining Finances? Seeking HR Insights

Dear HR Experts,

Greetings for the day...

Uniforms and Cost Management

As we all know, a uniform is a part of discipline and uniformity among staff and workers. Sometimes, the employer provides the same uniform to all workers and a slightly different one to all staff. Now, being in HR, we need to focus on cost-cutting and employee motivation to ensure that neither the employer nor the employee feels overburdened. Costs are increasing, but when we consider industrial trends, any increase in minimum wages/worker wages/salary does not necessarily lead to a corresponding increase in the marginal cost of the components manufactured by the employer. To reduce the overall cost, certain cost-cutting tools are either suggested by employees or imposed by the employer. Therefore, the uniform, being a major contributor to indirect costs, is an area where employers seek to implement these suggestions.

Cost-Bearing Criteria for Uniforms

Based on various industrial surveys and experiences, I have identified four criteria:
1. 100% borne by the employer;
2. 100% borne by the employee;
3. 50% by the employee and 50% by the employer; and
4. Subsidized uniform (a defined percentage by the employer, such as 33% by the employee and 66% by the employer or 25% by the employee and 75% by the employer).

Please suggest the best practice so that both the employee and the employer do not feel the financial strain. The current scenario is that the employer is not providing the uniform and wants to start this trend.

Please provide suggestions while considering industrial relations.

Regards,
HSM

The Employer's Responsibility in Providing Uniforms

Where an employer has to provide a uniform and shoes as required under the law, there is no question of recovering even a part of the cost from the employee as it is a legal mandate. Even where the employer wants to provide a uniform as a matter of policy for the sake of equality, identity, or branding, I personally feel that it is not an ideal practice to recover the cost on a sharing basis for the following reasons.

1) It is the employer's decision to provide a uniform to the staff to serve certain purposes as mentioned above, but not the demand of the employees. When the employer provides a facility at their own initiative, it is not proper to ask the employees to pay for it.

2) Wages are paid only for the work done and can be deducted proportionately only when there is any shortfall in the normal standard of productivity of the employee, either due to absence, late coming, neglect of work, etc. On the other hand, uniforms are expected to improve the productivity of employees because of the feelings of unity and bonding, and therefore, it is not a prudent practice to penalize them for being more productive.

3) Most of the employees who have to wear uniforms belong to the junior levels of the hierarchy and may not be very well paid. A deduction may cause some financial hardship.

4) The employee himself bears the cost of keeping the uniform washed and pressed regularly. He bears the maintenance cost.

5) It may not help employer branding.

Handling Uniform Costs When Employees Leave Early

One question may arise: what if an employee leaves the organization within one month or within a short period of joining, rendering the uniform waste as it cannot be given to others? This is a cost to the company. In such cases, you can make it part of the terms of appointment that they have to bear 60% of the cost of the uniform if they leave within a month of joining, 50% if they leave within three months, and 40% thereafter but before six months. No recovery after six months.

Other views are welcome.

Regards, B. Saikumar HR & Labour Relations Adviser

Why do we require uniforms?

Uniforms are a distinctive mode of being recognized from the crowd. No wonder armed forces worldwide give uniforms to their personnel. They not only prescribe dress but also provide subsidies, monthly allowances, etc.

The company that wants their employees in uniform must select a suitable design and cloth type that not only makes the employee stand out but also helps them in their work. The company can weigh the indirect cost of providing uniforms and the intrinsic but non-computable value of giving uniforms, and accordingly make policies. These policies range from cost limits and periodicity to recovering the cost of uniforms from people who leave without serving a minimum period after joining.

Negative points of wearing uniforms at work

Some negative points include hampered performance due to poorly designed work clothes, dress issues where the type of apparel may not suit some workers, preventing uniqueness as the unique style of each person gets submerged in the crowd, negative reception where some employees may not like the regimentation and feel they are in the Army (IR Part), and the time required for special care and upkeep of uniforms. A dirty uniform is more noticeable and has a more negative impact compared to a dirty civilian cloth worn by a worker. Religious sentiments also need to be kept in mind when prescribing uniforms.

After weighing all these issues, the company can make an informed decision.

Providing Uniforms to Employees

Valuable points have been proposed for providing uniforms to employees. It also depends on the type of industry—factories, offices, and categories of employees like workmen at the shop floor and offices, etc. Since it is a welfare measure and the company provides it to establish the identity and discipline of employees, there is a compulsion or rule for employees to wear it while on duty. Most factories provide uniforms freely, including stitching charges and washing allowances. Security personnel are even given ironing allowances.

Since most companies provide uniforms as a welfare measure and for the need of the company for discipline and identity at workplaces, proposing to charge for them can have a negative effect on the morale of the employees. Some companies provide 3 pairs of pants and shirts. Recovery can be proposed if the employee leaves within 3-6 months of the issue. Senior members have given good suggestions. The HR department should observe the industrial practices in surrounding industries and implement them.

Regards

To add one more point to the valuable suggestions given by the members above, I wish to mention that for employees falling in the workmen category under labor laws, you can neither charge nor discontinue the uniform as it is a service condition now. However, you can introduce changes by following the process under Section 9A of the ID Act.

For others, you can easily do so but not without causing resentment. In fact, this step will vitiate the atmosphere. Why, when it comes to cost leadership of the companies, try to punish poor employees of the company? If cost is the issue, then cut down the entitlements, facilities, salary, and benefits of the top layer of the employees. This way, only a handful will suffer. Also, stop their hefty increments to save the cost.

Warm Regards, Bharat Gera HR Consultant [Phone Number Removed For Privacy-Reasons]

Uniform Costs and Employee Welfare

Uniforms are an important part of an organization's work culture. However, if the cost of the uniform is not covered by the organization, low-salaried employees may not be in a position to bear the cost and maintenance of the uniform. Therefore, organizations should cover all the costs associated with the uniform, including maintenance.

Uniform Attire and Organizational Culture

Uniform attire cannot be seen distinctly from the organizational culture. The Japanese have made it big, and we had it at the Maruti Suzuki Plant in Gurgaon, where all employees wore the same uniform and ate in the same canteen. It was a novelty then, and soon many organizations followed this practice. The purpose of bringing uniformity is to promote inclusiveness among all employees and to ensure there is no discrimination based on rank in the organization. I personally know many employees who got married attired in neat uniforms or wore a uniform for the wedding of their children. The interesting explanation given was that this is the only dress which I share with my Chief Executive. The employee felt happy and proud to show his organizational loyalty.

Charging employees for uniforms will deprive them of such sentiments.