Authorization Letter for Salary Deduction

July 4, 2022

An authorization letter is a letter written to give someone the authority to perform some tasks. For example, an authorization may be given to someone to collect important documents on someone else’s behalf. A person may authorize someone to receive payment on their behalf. When people move goods across the city, need to give the driver the authorization letter to move the goods.

It is a formal letter returned by someone in authority hence the tone is formal and serious. The letter should include all relevant details like the name of the person who is being authorized and the task for which the authorization is granted. If the authorization is for some time only, then the period should also be mentioned clearly.

Sometimes an employee makes a mistake for which they are given a penalty like a deduction in salary. This may happen when an employee damages office property due to negligence. Sometimes disciplinary faults like late arrival, not being regular, etc also result in salary deduction.

Many organizations have Standard Operating Procedures (SOPs) to deal with such situations. The employees are informed in advance about the consequences of their negligence and incompetence. When such a situation arises, the department head writes a letter to the finance department, authorizing the deduction of the salary of the employee.

All the important details like the exact amount to be deducted, the period for which the amount is to be deducted from the salary like one month, two months etcetera should be clearly mentioned in the letter.

I (name), (designation) from (department name) am writing this letter to authorize you to deduct (amount) from Mr. (name)’s salary for this month. Mr. (name) who is serving as (designation) in our department has been coming in late to the office and despite multiple warnings, no change has been observed in his timings.

As you know that we have initiated a new policy to counter these late arrivals. Any employee coming in late for 3 days, would have one day’s salary deducted at the end of the month. Since Mr. (name) was absent for (number) days hence his salary deduction would be of (amount).

Please remember that this is only a one-time cut. The purpose of this new policy is not to burden the employees but to make them realize the importance of punctuality and to improve office discipline which has been deteriorating increasingly over the last few months. This decision was taken in the last monthly meeting of the Department Heads held on (date).

All the employees were notified about the policy through a letter issued by the HR department. This policy has initially been implemented for the next six months, after seeing its results it will be revised or revoked as they need maybe. In case of any queries, please contact me on my (phone number) or email me at my (email address).

I (name), (designation) from (department name) am writing this letter to authorize you to deduct (amount) from Mr. (name)’s salary for this month. Mr. (name) is serving as (designation) in (department).

This deduction is being done because of his actions on (date), where due to his Incompetence the motherboard of the printer was fried, and the entire printing network went offline.

His negligence and incompetence caused not just monetary loss to the company, but a lot of backlogs collected from which all departments suffered because the printers were out, and every department had to face undue delay in work.

I have taken this decision as his department head because we do not have any place in this office for such a careless attitude. This decision is aimed to remind everyone to be extra vigilant when they are working in the office and if they do not know about the working of any electronic equipment or device, they should report to their immediate senior or the IT department instead of messing with it.

The inconvenience and undue stress, everyone had to face due to his incompetence had to be penalized to send out the message that this behavior will not be tolerated or condoned. If any further clarification is required, please call me at (phone number) or email me at (email address).

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Authorization Letter for Salary Deduction

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