An attendance allowance refers to a bonus offered to employees for coming to work.
Why Implement an Attendance Allowance?
Attendance allowances motivate employees to consistently come to work.
It is often used in indsutries where working conditions are sometimes difficult and employees tend to be disproportionately absent.
The attendance allowance has several benefits, including:
- Easing recruitment
- Rewarding good employee behavior
- Helping reduce absenteeism in the workplace
- Reinforcing a company’s brand
How to Implement an Attendance Allowance?
Companies that wish to introduce an attendance allowance generally begin by discussing it with their employees. If the employees seem interested, the company can write up a policy that stipulates how the bonus is awarded.
It is then important to establish in writing how much the bonus will be, as well as the conditions for receiving it, such as attendance and punctuality requirements.
Employees’ contracts of employment, the collective agreement or the collective bargaining agreement should then be updated to reflect the policy.
How to Calculate an Attendance Allowance?
How an attendance allowance is calculated depends on what is written into the employment contract, the collective agreement or collective bargaining agreement.
The amount of the bonus can vary as long as it does not allow for discrimination.
For example, a company awards a bonus of $100. The bonus is reduced by 5% for each day of work missed and is withdrawn after 10 days’ absence. An employee who is absent for 2 days will still receive a $90 bonus.
Is It Mandatory to Pay an Attendance Allowance?
The attendance allowance is not mandatory. Each company can decide whether or not to offer it to its employees.
What Alternatives Are There to Attendance Allowances?
Alternatives to attendance allowances include:
- Improving employees’ working conditions
- Offering better pay
- Implementing practices that promote employee well-being
- Requesting a medical check-up when an employee is absent
Who Is Entitled to an Attendance Allowance?
Companies can decide for themselves to which employees they would like to award an attendance allowance. They simply must ensure that they comply with the conditions set out in the employment contract, collective agreement or collective bargaining agreement.
