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Compensation Management

In: Business and Management

Submitted By mary12345
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Firm was well aware of the natural calamity and it was known that absenteeism was beyond the control of workmen but still they could not pay and mark those workers present who were not able to attend the job.
An employee is well aware of the company’s policies while entering into the firm. Therefore, he should follow the set of rules that are already lined up in the employment contract.
Accommodation for a single day will discourage the employees who manage to reach in time. If managers compensate the employees this time this will become a habit of them and everyone will have an excuse of coming late next time. As a result, Loss is incurred by the firm if any employee reaches late or misses his shift during the important working hours.
According to the Indian Payment of Wages Act 1936, deductions can be made from the employee’s wages if he/ she is absent from duty. Hence, managers of Sriram Industries should pay the workers according to the work done keeping in view the principle of ‘no work no pay’. As the relationships of the unions and the management is satisfactory, so this matter must be explained to the workers in a more convincing way that paying or marking those 3600 workers present would be unfair to those 4000 workers who reached on time and other 2600 and 4800 workers who manage to come on duty. Thus, firm will pay the workers on hourly basis in such calamity in general shift of 8-16 hours and any employee able to keep his punctuality for a year will be rewarded 5% of his basic pay annually. This clause will be added for future reference. Pay will be given in this way, Workers Decision Reason (Deserve compensation because)
4000 attended in time Whole day pay will be given Worked for whole day
2600 attended 2hours late Six hours pay will be given Worked only for 6 hours
4800 attended 4hours late Four hours pay will be given Worked only 4 hours
3600 absent (not report for duty at all) No pay will be given Did not report for duty at all

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