How To Transfer An Employee To Piecework Wages

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How To Transfer An Employee To Piecework Wages
How To Transfer An Employee To Piecework Wages

Video: How To Transfer An Employee To Piecework Wages

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Video: Piecework Animation 2023, January

In the course of economic activity, some employers change working conditions, for example, the form of payment. Piecework pay is a form in which the amount of wages is calculated based on the products produced or the amount of work (services) performed. It is the use of this form that stimulates an increase in labor productivity. This factor prompts managers to transfer some employees to this method of calculating wages.

How to transfer an employee to piecework wages
How to transfer an employee to piecework wages


Step 1

In the event that you apply temporary wages to an employee, but want to transfer it to piecework, you must warn him about the change in the terms of the employment contract two months before their entry into force. To do this, fill out a notice, the content of which should be something like this: “In connection with (indicate the reason), we notify you that from (write the date of entry of the new conditions), the terms of the previously concluded labor contract (indicate the number and date), determined by the parties, will be changed, namely … (List old and new editions)”.

Step 2

After that, the notification is sent to the employee, who must sign his / her agreement with the information provided. If there are several employees, then you can compose a collective letter in which each worker puts his signature opposite the surname.

Step 3

In the event that the collective agreement or the regulation on remuneration does not indicate the possibility of applying piecework wages to employees, you must make some changes to it. To do this, issue an order.

Step 4

Draw up an order on the introduction of piecework wages. Write down the tariff rate or percentage in this administrative document, and also indicate those employees who were affected by the change. In the event that this is a whole division, then it is not necessary to list all, it is enough to indicate the name of the department.

Step 5

After that, draw up an additional agreement to the employment contract, be sure to specify the method of calculating wages, refer to the administrative act. Draw up this legal document in duplicate, sign, put a blue seal of the organization, give it to the employee for signature. Do not forget to make changes to the staffing table, for this, also issue an order.

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