Deduction from wages for lateness

[dbrooker]

We have an ongoing problem with staff missing their start time, and automatically assuming that they can either make it up at the end of the day without any discussion or just ignore it. We are starting to address these as performance issues and we will resolve it one way or another. Our staff are covered by the SCHADS modern award which is silent on deduction of lost time from wages, and our ER advisors just say performance manage it, when we would like to hit the pocket. Some old awards used to allow for deductions of 15 minute blocks for lateness, but I can't see anything that validates this course of action. We don't currently have a policy to cover it either.

We are trying to turn around poor management practices over quite a long period of time and will ultimately performance people out or convince them to change their ways.

Does anyone have information about deduction for lateness? Thanks.

[Tiger]

Sorry to be the bearer of this news but it is the latest (in past 12 mos) of Fair Work Commission sillyness. You cannot deduct anything from an employee's pay which disadvantages them even with their ok. So deducting health insurance premiums if employee requests you to eg or a garnishee by the courts (of course) is allowed.

This issue comes up again and again particularly at termination when employees owe companies money either for minus leave balances because companies have thought they were doing the right thing by advancing leave (never do it) and need to recoup the money.

The only way is to threaten them with small claims court but that's costly to the business so hardly worth your while.

So you cannot deduct from this guy's wages for lateness. You should instead performance manage him (as already suggested to you) for his time keeping/attendance and make it clear that if there is not a 100% improvement, his job is at risk. Old awards are now passe and we live in an environment where everything is stacked against employers.

I can assure you that if you try the pay deduction route and employee makes a complaint to FWC, they will not be finding in favour of the company.

Tiger

[Cottoneyes]

Does it have to be a deduction?

I'm assuming the employee is salaried not hourly paid which is why the avenue of deductions is being explored. Perhaps you need to stengthen your leave policy and have the employee made aware that being late will require the time to be taken as leave, if no leave balance is available then it will be processed as leave without pay. (Or cut to the chase and say something like unplanned leave other than personal leave will be processed as leave without pay unless the manager uses their discretion). Get the policy correct and ensure that no overtime will be paid without agreement etc to stop them coming back on that front, and you should be able to manage it without even using the word deduction.

[Moz]

Just how late are these people coming in?

I watched a doco about Amazon in the UK recently and their warehouse staff accumulate penalty points for lateness (among other things) and they have a rigid procedural process in place once you accumulate a certain number of points, including counselling. However it doesn't take long for repeated latecomers to be exited.

[HRBConsultant]

OK first you have to look at the contract of employment. Is there one? you can not address a performance matter by deducting pay. The only way you are permitted to do so is if that employee is paid at an hourly rate and is submitting timesheets and pay is calculated on hours worked (this usually relates only to casual employees). Ordinarily if an employee is not attending work at the required time the only acceptable means of recourse for the employer is to actually reprimand the employee through an effective performance management process. If there is a valid reason, ie., a single mum, perhaps look at accommodating those needs by setting the start time back by an hour or so or whatever amount of time I needed. Reduction of pay is not a suitable disciplinary tool. Under contractual requirements as a permanent part time or full time employment, the employee has agreed contractually to commit to the terms outlined in the contract of employment. Disciplinary action is taken when the employee fails to meet their agreed contractual terms. If you want to discuss please feel free to contact me. This is a tricky area.