After entering the workplace, you may have heard the term "performance pay", which means that the company pays employees based on their performance. If they perform well, they will be paid more; if they perform poorly, they will be paid less. The original intention of designing performance-based pay was to increase employee motivation, but some unscrupulous companies use it as a means to save labor costs and deduct performance-based pay indiscriminately.
Can a company's performance management system be formulated at will? What should the company do if an employee's performance is arbitrarily deducted? In this case, Mr. Li was deducted 150 yuan from his performance. He finally protected his rights and interests through the law and received a financial compensation of 132,000 yuan. Let’s take a look at how he received financial compensation.
Case sharing
Mr. Li has been in the company for 12 years. He started as a clerk and rose to the position of supervisor, earning about 11,000 yuan per month. Once, Mr. Li got his salary details and found that he had been deducted 150 yuan for no reason. Mr. Li went to the human resources department to ask for an explanation. The human resources department said that his supervisor gave him a low score for his work attitude. According to the performance appraisal standards, Mr. Li was deducted 150 yuan.
Mr. Li doesn’t understand. What does a bad work attitude mean? Does the performance management system have this provision? The money that was deducted was not that much, but the company's style of randomly deducting money was intolerable. Mr. Li proposed to resign, and applied for labor arbitration to the arbitration committee on the grounds that the company did not pay full wages, and proposed a financial compensation of 132,000 yuan.
From the company's perspective, Mr. Li's work attitude is not good enough. According to the company's performance appraisal standards, 150 yuan should be deducted. This behavior complies with payroll management rules and regulations. Mr. Li resigned on his own initiative, and the company did not provide him with sufficient salary. Therefore, the company is unwilling to pay 132,000 yuan in economic compensation.
Mr. Li believes that the work attitude is not good enough, which is just an excuse for the company to deduct money randomly. What is a bad work attitude? The company did not make any relevant agreement, and the supervisor made the decision at will, which was too subjective. And judging from the work results and work content, I don't have a bad work attitude at all. More importantly, I have not talked about the company's performance appraisal system and scoring standards.
The arbitration committee believed that the company could not provide evaluation standards for the performance system, nor could it prove that employees were aware of the company's performance system. At the same time, the evidence produced by the company cannot fully prove that Mr. Li has a bad work attitude. Therefore, it is unreasonable for the company to deduct performance behavior. In the end, the arbitration committee ordered the company to pay Mr. Li 132,000 yuan in economic compensation.
According to the provisions of the Labor Contract Law, if the company does not pay enough wages, the employee can terminate the labor contract and require the employer to pay financial compensation. Mr. Li's average monthly salary is 11,000 yuan, and his working years are 12 years, 1.1*12=132,000 yuan.
Law popularization moment: Can companies formulate performance systems at will?
The company has the power to formulate a performance appraisal system, but of course the company cannot formulate it at will. Even the performance appraisal system must be constrained by laws and regulations.
1. The labor contract must stipulate performance pay.
Some companies do not specify performance pay in the salary structure of the labor contract. Then the company's deduction of performance pay is equivalent to underpaying wages. Workers can violate the law and demand economic compensation for their rights.
2. The performance management system needs to be publicized
The performance management system is the company’s incentive measures for employees and the direction of requirements. Employees certainly need to be aware of performance management measures before they are implemented. Generally, when formulating a performance management system, it is necessary to conduct internal work first, and then employees must sign for confirmation after they are informed of the situation. If employees don’t know the performance system and assessment standards, the company can’t deduct performance wages at will.
3. Performance deductions require employee signatures
A more formal company pays wages, but in big cities, employees are required to sign to confirm the pay slip. Performance pay is no exception. If the company deducts performance, it requires the employee to sign for confirmation, and the reason for the deduction and the assessment standards must be clearly explained to the employee.In this case, it is possible that Mr. Li went to the arbitration committee angrily because he had objections to the assessment standards.
4. Wages cannot be lower than the local minimum wage standard
Each region has a minimum wage standard. Even if the company deducts performance, it cannot make workers' wages lower than this level. Once a problem occurs, workers can appeal to the local labor bureau as soon as possible.
Summary
I believe that many people have encountered the phenomenon of companies randomly withholding wages. Most of them can only endure it because they do not understand the law and are forced by the pressure of life. If you understand the law and actively defend your rights like Mr. Li in this case, you will get the compensation you deserve. Some people think that it is troublesome to litigate. The company really took advantage of everyone's mentality and deducted wages unscrupulously. In this case, Mr. Li lost 150 yuan and finally received 132,000 yuan in compensation, which shows us the benefits of active rights protection.
