I run an NGO where we have a few permanent employees. One of them has been consistently underperforming, and his lack of commitment to his tasks and duties is obvious. Can I reduce his salary as a punishment?
From India, Ahmedabad
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From India, Ahmedabad
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Dear,
I would suggest talking to him in person and telling him your concern. Ask him about his reasons for not performing his duties up to the mark. Get to know his situation first and act accordingly.
Give him a polite verbal warning to improve and observe him for a few days. Assign him tasks and check how he performs and how seriously he considers those tasks. If he is still not able to perform well, give him a written warning.
From India, Gurgaon
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10I would suggest talking to him in person and telling him your concern. Ask him about his reasons for not performing his duties up to the mark. Get to know his situation first and act accordingly.
Give him a polite verbal warning to improve and observe him for a few days. Assign him tasks and check how he performs and how seriously he considers those tasks. If he is still not able to perform well, give him a written warning.
From India, Gurgaon
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The answer depends on how many people are working, whether factories act or shop & establishment applies, and whether standing orders and industrial dispute act applies. To be safe, it is better to give a written warning as provided in Model Standing Orders.
I think you need to give 2 warnings and then a notice warning him of a reduction in salary if he does not improve. The warnings must be specific, giving the details of his failure or his mistakes. You cannot be vague on this matter, or the exercise is meaningless.
From India, Mumbai
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I think you need to give 2 warnings and then a notice warning him of a reduction in salary if he does not improve. The warnings must be specific, giving the details of his failure or his mistakes. You cannot be vague on this matter, or the exercise is meaningless.
From India, Mumbai
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A small organization may not be well organized in terms of all orders/procedures, etc. But where an employee is consistently underperforming, steps need to be taken to rectify the situation. How has it been decided that the employee is underperforming? Are there any output standards fixed and communicated to him/her?
Here, what I can suggest is to have a talk with the concerned employee, document the discussion, and create an action plan outlining the work required to be done and the time periods, etc. After this effort is made, monitor and issue warnings if there is a failure. If things still do not work out, a pay cut can be considered.
Natural justice should pervade company actions, duly documented, etc.
From India, Pune
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Here, what I can suggest is to have a talk with the concerned employee, document the discussion, and create an action plan outlining the work required to be done and the time periods, etc. After this effort is made, monitor and issue warnings if there is a failure. If things still do not work out, a pay cut can be considered.
Natural justice should pervade company actions, duly documented, etc.
From India, Pune
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Coming to think of it, after Mr. Nathrao's post, I think you should figure out whether you should retain him or replace him with someone else better suited to your work (with due notice before you remove him so he can find another job). A person with a salary cut is generally resentful and disruptive. If you do cut his salary, it is also better if you can get him to agree to the same and let him sign the revised salary letter so there is evidence that it was not forced. The labor court is unlikely to give a judgment in his favor (note, I say unlikely because the court will consider all circumstances and even then the decision may favor the employee).
From India, Mumbai
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From India, Mumbai
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Please understand the root causes/reasons of under-performance. An employer can give guidance, training and support to employee for performance/productivity. Proper communication between employer-employee will solve many problems. Lacking skills (physical/digital), lack of passion/motivation, ineffective communication and Family problems can convert a performed employee into an under performed employee. “Money” is the principal factor for motivation to work. Measure everything before reducing remuneration or reducing manpower.
Yours Sincerely,
Mohan Nair.
From India, Mumbai
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Yours Sincerely,
Mohan Nair.
From India, Mumbai
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The answer is no, you did not meet any performance criteria. How do you justify the reduced payment for the position one held?
Have you ever apprised the employee that his performance is not up to the mark, or the work entrusted to him is still pending/incomplete, or any wrongful act? Is there anything in your policy that allows the establishment to reduce salary if performance is not found satisfactory? Maybe his performance is due to certain lacunae that lie at the management level, which he could not escalate!
You need to call the person to discuss the issue before taking any harsh action and inform the management's decision (when you cannot increase the salary at your discretion). Instead of reducing salary, consider no increment, which is well placed. In this particular issue, our learned colleagues have analyzed the topic from different angles to guide you. It is up to you to decide how to move forward.
From India, Mumbai
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Have you ever apprised the employee that his performance is not up to the mark, or the work entrusted to him is still pending/incomplete, or any wrongful act? Is there anything in your policy that allows the establishment to reduce salary if performance is not found satisfactory? Maybe his performance is due to certain lacunae that lie at the management level, which he could not escalate!
You need to call the person to discuss the issue before taking any harsh action and inform the management's decision (when you cannot increase the salary at your discretion). Instead of reducing salary, consider no increment, which is well placed. In this particular issue, our learned colleagues have analyzed the topic from different angles to guide you. It is up to you to decide how to move forward.
From India, Mumbai
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I prefer the suggestion of Mr. Prabhat and would like to add a few points in line with the discussion.
Is the individual classified as a permanent employee? Is the individual categorized as a permanent workman or under others?
If the employee is found to be delinquent, gather evidence of work assignments and performance records as proof of the severity of the misconduct.
Ensure that Key Performance Indicators (KPIs) and Key Result Areas (KRAs) are unbiased. Provide counseling to the individual during periodic reviews, documented as a record.
Adhere to the established standing orders.
Issue Show Cause Notice (SCN) as the first step. Provide a warning and training. Document all interactions.
If despite counseling, training, and warnings, there is no improvement, consider withholding the increment. The goal is to help the individual realize and correct their mistakes, not to punish. However, ensure compliance with legal requirements for disciplinary proceedings to prevent reinstatement or granting of relief.
From India, Coimbatore
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Is the individual classified as a permanent employee? Is the individual categorized as a permanent workman or under others?
If the employee is found to be delinquent, gather evidence of work assignments and performance records as proof of the severity of the misconduct.
Ensure that Key Performance Indicators (KPIs) and Key Result Areas (KRAs) are unbiased. Provide counseling to the individual during periodic reviews, documented as a record.
Adhere to the established standing orders.
Issue Show Cause Notice (SCN) as the first step. Provide a warning and training. Document all interactions.
If despite counseling, training, and warnings, there is no improvement, consider withholding the increment. The goal is to help the individual realize and correct their mistakes, not to punish. However, ensure compliance with legal requirements for disciplinary proceedings to prevent reinstatement or granting of relief.
From India, Coimbatore
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Reducing Salary Of One Underperforming Permanent Employee As A Punishment?
Trust me reducing salary will never enhance performance... Rather the situation will be more
de-motivational
Now coming to the topic of reduction, you have not mentioned whether it’s a part of your appointment clause.. I understand its generally not a part of appointment letter clause, additionally when we talk about performance it’s both way ..
From Employer to Employee & Vice Versa:-
#Employee understanding of his discussion during the Interview and his clarity towards his job
#The offered role & understanding
#Clear understanding of what kind of on job training being offered before you assess
# Please rate your support, availability from his co-worker, team coordinator & manager for spend time to discuss the employee understanding, doubts & concern.
Hence with periodic review and on job training with proper documentation you should assess him.
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Trust me reducing salary will never enhance performance... Rather the situation will be more
de-motivational
Now coming to the topic of reduction, you have not mentioned whether it’s a part of your appointment clause.. I understand its generally not a part of appointment letter clause, additionally when we talk about performance it’s both way ..
From Employer to Employee & Vice Versa:-
#Employee understanding of his discussion during the Interview and his clarity towards his job
#The offered role & understanding
#Clear understanding of what kind of on job training being offered before you assess
# Please rate your support, availability from his co-worker, team coordinator & manager for spend time to discuss the employee understanding, doubts & concern.
Hence with periodic review and on job training with proper documentation you should assess him.
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I will give practical advice:
1. Talk with empathy.
2. Give him a chance and resources to improve, without any bias or ego, etc.
3. If the purpose of reducing salary is to facilitate improvement or let the candidate go on his own?
4. I think it's best to terminate politely and assist in finding a relevant job according to his capabilities. It is less painful, and the work culture will not be spoiled.
5. Next time you hire anyone, clearly define fixed and variable pay so that this situation does not arise.
From India, Morvi
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1. Talk with empathy.
2. Give him a chance and resources to improve, without any bias or ego, etc.
3. If the purpose of reducing salary is to facilitate improvement or let the candidate go on his own?
4. I think it's best to terminate politely and assist in finding a relevant job according to his capabilities. It is less painful, and the work culture will not be spoiled.
5. Next time you hire anyone, clearly define fixed and variable pay so that this situation does not arise.
From India, Morvi
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Salary-Note.doc
SALARY SHEET CALCULATION.xls