Shift Allowance Dilemma: Can We Limit It to Team Leaders and Above Without Issues?

I would like to know if shift allowance can be restricted to certain levels. Our company used to pay night shift allowance for everyone except the top management. We are thinking of cutting the night shift allowance from the team leader level and above now but compensating it with a salary hike. Is that okay? Or is it mandatory that team leaders should be given the shift allowance as well?

Night shift allowance considerations

Shwetha, night shift allowance is a benefit extended to an employee for managing the hardship of continuing with odd office timings.

There are THREE practical thoughts:

1. If the COVID-19 pandemic has affected your business operations or made it infeasible to operate in night or odd shifts, you may exercise discretion to discontinue shift allowances. However, night shifts should be disbanded for everyone. These two things should go hand in hand. It would be unjust if employees (or some of them) are asked to report for work during night or odd shifts without being paid for the hardships caused. This remains true even during such times.

2. Adjusting a salary component is acceptable, but employees should be kept well informed about this through an official letter or email communication. New salary structures may be provided to the employees, and sign-off should be obtained from them. A clear FAQ document should be prepared and shared with all affected employees along with such communications.

3. The above applies to all salary and designation bands in an organization. Please consider whether your organization can reduce the complexity of the situation and bring uniformity in pay policies for all levels.

Shift Allowance for Night Shifts

Whether it is a worker, staff, or managerial person, when they work the night shift, all undergo the same physical and mental problems. Especially in a manufacturing unit, the shift in charge and other staff experience more stress compared to workers. Hence, shift allowance should be considered for all, irrespective of their position.