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Indicator 3.10.4
by Contact on 8 October 2026
Requirement
The UoC shall not deduct from wages or benefits as part of any response to breaches of company rules.
How Do I Interpret This Requirement?
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A person’s livelihood and ability to feed and provide for themselves and their families should not be impacted by a disciplinary action at work.
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Wages cannot be withheld for disciplinary action from any:
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regular wages
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payments for overtime
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other benefits such as fixed year-end bonuses.
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Non-fixed bonuses that are determined based on performance are not considered a benefit.
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This indicator applies even if local laws or regulations allow monetary fines to be imposed as part of disciplinary procedures.
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Suspension can sometimes be used as a disciplinary action. This period of suspension should always be paid unless:
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suspension for a time is offered to the employee as an alternative to dismissal, this period could be unpaid as long as:
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the employee has agreed to accept this
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it is not enacted after the event as deduction from wages.
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Evidence of Implementation
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written workplace conduct response policy
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payroll documentation to verify if they are deductions other than legally mandated deductions (for example, taxes and employees’ contributions towards social security or health insurance).
Auditors Should Confirm
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if there have been any fines, as they are not always reflected on pay records;
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if there are any specific methods of discipline for production targets not being met or for quality issues;
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any fines that employees have had to pay (for example, for coming late to work, excessive use of toilets, being absent or sick etc.).
