Understanding Staff Fines: What Are the Policies and Steps if Pay is Deducted?

Nabeel hr
Hi,

Policy for fines applied to staff

What is the policy for fines applied to staff, and how much can be fined?

Steps to take if a fine is deducted from pay

Additionally, what steps should be taken if the fine is deducted from their pay?
vmlakshminarayanan
Hi, Please refer to the following regarding fines as per the Payment of Wages Act.

Section 8 in The Payment of Wages Act, 1936

8. Fines.— (1) No fine shall be imposed on any employed person save in respect of such acts and omissions on his part as the employer, with the previous approval of the appropriate Government or of the prescribed authority, may have specified by notice under sub-section (2).

(2) A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or, in the case of persons employed upon a railway (otherwise than in a factory), at the prescribed place or places.

(3) No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or otherwise, than in accordance with such procedure as may be prescribed for the imposition of fines.

(4) The total amount of the fine which may be imposed in any one wage period on any employed person shall not exceed an amount equal to three percent of the wages payable to him in respect of that wage period.
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