HRSINGAPORE Community Discussions

QUESTION

Hi HR Professionals,

Are employers allowed to impose penalty on managers (earning a basic salary of more than S4,500 per month) who did not fulfill any one of the job requirements (for example: did not send report on time and etc) via salary deduction?

As I understand from the Employment Act, the act does not cover Managers and executive with monthly basic salary of more than S$4,500. Is it right for employers to impose the penalty on managers and those who are not covered by the Employment Act?

Appreciate your advice. Thanks.

JK

REPLY 1

Has his immediate supervisor been alerted or directly address this issue yet? It should be under his Reporting Officer unless your Company request HR’s recommendation. HR does not recommend “deduction of salary as penalty” for non-compliance of employee JD.

RH

REPLY 2

My thought on approach would not be on salary deduction. In addition, how to benchmark amount to be deducted for late reports submission. If it is a constant behavior, it is a question on the quality of the Manager. If still no improvements & demotion of grade is not feasible, other remuneration aspect could consider during salary and bonuses review. No offence, have a good talk with this particular Manager, deduction of salary is not the best solution.

Sharon

REPLY 3

Monetary not advisable. Disciplinary okay. Documentation wise probably good to tie to KPI.
Everybody’s salary is their livelihood.

Dksw

REPLY 4

For managers, the penalty should be imposed via the ongoing performance measurement KPIs, with any resultant penalty applied to the increment or bonus depending on your company practice.
It sounds like the event is measurable in cost. If it is a minor one such as negligence resulting in damage costs, you can consider recovering it with salary deduction. If it is major such as contractual loss, this would be very harsh. Either way, it may have a backlash, so please consider carefully.

HK