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Thread: Cash shortages

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    Cash shortages

    Hi all.

    What is the correct way to deal with cash shortags? I am running a delivery business and work mostly on cash. Is it allowed to deduct the employees salary due to shortages? This happens regularly as they deal with many clients daily.

    Please advise.

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    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by Luqs View Post
    What is the correct way to deal with cash shortags?
    Make more sales. Collect payment more quickly. Negotiate preferential supplier terms. Avoid over-stocking. Contain costs.

    Quote Originally Posted by Luqs View Post
    Is it allowed to deduct the employees salary due to shortages?
    No.

    Founder of Growth Surge - Helping entrepreneurs create more wealth and enjoy more freedom.

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    Diamond Member AndyD's Avatar
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    Quote Originally Posted by Greig Whitton View Post
    Make more sales. Collect payment more quickly. Negotiate preferential supplier terms. Avoid over-stocking. Contain costs.
    I might be wrong but I'm reading it that when he says 'cash shortage' Luqs means his employees are returning to his office after their shift and handing over less cash than they ought to have from the payments they've taken on their route.
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    Quote Originally Posted by AndyD View Post
    I might be wrong but I'm reading it that when he says 'cash shortage' Luqs means his employees are returning to his office after their shift and handing over less cash than they ought to have from the payments they've taken on their route.
    Yes! This is exactly what is happening.

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    CCTV to monitor them?

    Offer more payment options...like zapper to ease the amount cash handling? Even the the coffee shop caravan on the street corner has this facility...it saves me carrying cash or cards.

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    Hi Luqs

    In answer to your question , I would say yes you are entitled to deduct the "missing " cash that should have been collected.

    Make sure that the amounts that had to be collected have all the paperwork signed.
    I would have a brief discussion with them to find out what the challenges are and to allow them input along with an attendance register that they all partook in the discussions.Then draft a letter informing the staff that from now on they will be responsible for any short falls and let them sign.
    You may have a mutiny but getting them to sign before you pay there wages normally speeds up the process

    Once you have that in place ensure consistency and you should not have a problem at CCMA.

    I am no labour expert but have learnt the hard way through numerous "visits"to CCMA. Over the years I have learnt that the saying "he with the most paperwork wins"is appropriate in that place.

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