Case Study
Dear Leaderchat,
I am happy to be here.
I manage a tech agency in Nairobi. During the previous lockdown we got an assignment and I asked one of my employees to handle it. For 2 weeks he failed to get the job done. We were working from home and so this made it a little difficult to monitor his work. After 2 weeks I asked to meet with him so he can show me what he had done so far. We met and he told me he had started with researching about the assignment - a whole 2 weeks. The client was waiting for a solution. No tangible deliverables were there to show.
Furiously I asked his colleague to take up the assignment. In less than 2 weeks, the assignment was done.
I decided to cut his pay because he had failed to deliver. The employee is threatening to sue. Does he stand a chance to win?
When an employee does not get the job done, can’t I as his/her employer have a right to deduct his/her salary? what would have been the best way to handle this?
I look forward to reading from you
Nganga M.
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You should not cut that salary because he failed to handle an assignment as such does not change the terms of engagement.
If it was clear in his/her employment contract that salary was based on output basis then salary cuts will be inevitable.
Lydia Cathy Tamale (Mrs)
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Dear Nganga,
Having read your email, your decision wasnt right due to the fact that there is always a contract to follow.
What was the contract content?
Thank you - Musa Kimera
Failing to deliver on one assignment alone may not justify taking action to cut one's pay. There should be policy provisions to deal with the issue including providing a fair hearing for the said staff.
If this has been a recurring issue and the correct procedures had been taken before hand to their reasonable conclusion, and that there's evidence that all actions taken are based on pre-approved policies that are fair in ethical employment settings, then it should be ok.
The temptation for leaders with poor performing staff is to take a decision at the spur of the moment driven by emotion. This temptation must be resisted by all means. Such a spontaneous decision - if taken without due process - can also give the other team members a sense of job insecurity where their views and or challenges they face in the line of work are not considered of importance.
Patrick Mudunga
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Hi there,
My take on this issue is that:-
Firstly, An employer has no right to deduct an employee’s salary based on performance, unless if the same is determined by the employees performance.
Secondly, an employment contract shall determine what the agreement between the employer and the employee.
Lastly, if the employee continuously under performs even after warnings given, the employer has a right to terminate the employment or demote the employee to a lower rank.
That is my opinion.
Thank you.
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Dear Leaderchat,
This is an interesting scenario.
I don't think cutting the pay of an employee because of failure of delivery is the way to go.
I would rather the employer first find out why there is no deliverable in a given time.
Also, there should be channels of commuting progress on tasks so that everyone knows why and when deadlines are not met. In order to be prepared to act in case of any circumstances.
The employer should provide support and employee asks for support whenever required.
If all channels are explored to prevent this from happening are exhausted and an employee still fails to deliver, then the next course of action like programs to help the employee to improve performance can be explored.
If this fails, leaving the company might be the next option. Cutting pay is quite difficult because the employee loses morale hence affecting productivity negatively.
Emily Namugaanyi
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Dear Employer,
I hope that my response will find you well.
Thanks for giving out a two weeks assignment to the employee.
I have noted that the assignment was given when it was a total lockdown so the staff was to execute it while at home. Before I make my submission, I need to get further clarification on the following;
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Are you sure that the employee had the required skills and knowledge to enable her/him to execute the assignment?
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Since it was a lockdown, did he/she have the required tools to use while at home?
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How was he/she performing previously in similar roles?
Basing on the questions above, I would request to make the following additional submission;
If the employee had no required skills and Knowledge to execute the assignment, he/she was to disclose this fact.
This would help the employer to provide guidance or reassign any other competent staff.
For the employer, before you assign to a staff, you must be sure that the person you are assigning is capable of executing the job well.
Action that was taken.
It was very right to reassign the activity to another staff because the report was needed. However, not paying the salary of staff was against the law for the case of Ugandan laws provided that no formal procedures were followed. There are a number of disciplinary actions to follow before making such a rapid conclusion. Once not followed, he/she has a right to sue you for the rapid action that was taken against him/her.
It is very prudent to follow procedures that are within the confines of the existing laws.
Also take time to review the appointments of your staff, most especially on the employee and company obligations. This will help you to avoid litigations.
Thank you for taking time to read my submission.
I remain,
CPA Godfrey Niwamanya
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Dear Nganga.
Cutting Employees salary without their consent is definitely illegal and Yes the employee can sue for that and He stands high chances to win the case.
There is a whole performance management process that should have been followed in such a case. Punishment by cutting the employees salary was extreme.
Thank you.
Benard Ochieng Ouma
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Hello,
In so very little words yes I think if the employee sued, he could actually win.
Make no mistake non-performance is inexcusable no doubt in any country but in the event that an employee fails to deliver, the right steps need to be taken.
In my opinion you shouldn’t have jumped right away to cut his pay.
The first course of action would have been to place him on a performance improvement plan and see if his performance improves and accord him all the necessary support.
You never know there could be something happening in his life or the work environment at home isn’t conducive for him leading to poor performance. All this you need to look at other wise you risk the employee using this in court sighting luck of support from the employer while work at home etc.
This is a delicate scenario where caution need to be practice.
After the PIP period and no change and you are sure you have provided the employee an opportunity and support to improve them you can proceed to take alternative course of action ie dismissal on grounds of performance.
Hope this is helpful.
Aaron Onen
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Yes, he has a right to sue you as his employer
Failure to do an assignment on time doesn't mean he can't do it and especially working from home has been tricky for everyone.
If u didn't agree to sign in the initial contract then he's very right.
Please learn to mentor your employees in areas of low experience and teamwork, maybe he wasn't sure of his research and needed guidance
Thanks A million
OBWAPUS ALBERT MARIO
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Dear RCS Consult,
I honestly think cutting his salary was not the right thing to do at that time because you seem to have done it out of anger.
I expect your company to have employment contract terms that are given to employees and proper disciplinary procedures that can be taken in case of underperformance. Discussing with your employee about his performance and its consequences is expected to be in the contract given to him would have worked out before such is taken.
In my view, he has a good court case against his employer.
Regards
Owaruhanga Ronald
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Good Evening
Hope the finds you well, legally u cannot deduct an employee's salary without his or her consent or even change his or her JD without a discussion or consent
In cases of poor performance, you put the staff on a Performance Improvement Plan (PIP) under the mentorship of an immediate supervisor for a specific period well that's if the employee you think will add value to the company, and for failure to follow lawful orders, you terminate and pay all the terminal dues in case its the case.
Of which he or she tried to do the work and did not fail to follow the orders
But deducting his or her salary due to any circumstances is not right unless its a clause in the letter of appointment as one of the terms and conditions
Thanks
Barbie kakie
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Give him a section of work, which is to his level, and come to agreement of payment according to his or her work.
Motivate and help him or her to learn what was supposed to be done
Martin Ngugi
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Instead of deducting his salary u rather terminate his services. Deducting one's pay is a demotivation and he might do substandard work.
Katagira Charles
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Your actions towards such an employee should be guided by a legal document employee manual, Contract agreement, etc. If your response isn't in any way not bound by any agreed document, you stand to lose.
Samuel Kahungu Samuel
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Sorry but if he or she goes ahead to sue he will win the case if cutting on his salary was not stipulated in his contract terms and conditions although he did badly not to complete work in time, as a company that employee was supposed to be given a working memo with immediate effect but not cutting his salary, if he does it again, as administrators you would call him for 2nd warning memo followed by disciplinary committee then if the worse becomes the worst you terminate the contract.
Thank you.
Hoping for the positive change upon that employee.
Nyinamatsiko Battilla
Dear Nganga M,
Sorry for what you are going through. The situation or scenario you are facing is an HR issue that should have been managed by HR from the onset.
Employees need to be given well-defined JDs/offer letters spelling out the terms and conditions or performance targets required of employees by management, or else most employees tend to relax on the job because they feel they have a guaranteed monthly salary stipulated by appointment letters.
Am not an HR expert but I believe setting proper terms in roles and targets is a must in job or contract offers to employees and this needs to be signed off by the employee in agreement...
Failure to meet the target or perform the role, therefore, becomes a basis upon which the contract or pay cut can be terminated/effected.
Yours sincerely,
Dennis Anywar (Logistics and supply chain Expert).
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Hello,
The employee has an upper hand over you.
Secondly was it anywhere stated in the HR manual or policy that when one doesn't deliver, salary cuts are a form of punishment! If NONE unfortunately you are losing it.
However you need to organize a meeting with your employees, explain it clear to the on how COVID-19 has affected the company and the salary cuts affecting all workers not one person only.
There are other steps options to punishment for none performing employees, first, meet them (even zoom) talk as minutes are taken, if this poor performance continues, introduce a first warning letter, second warning, if still no change, D.C meeting jets in then there after an automatic exit looms should the same performance continue. .
Regards - Deogratius okoroi
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Compiled by:
CS Consult
