No-work Pay Guarantee Policy

This policy is related to the labour contracts. To-day's labour contracts usually provide that men must be told ahead of time if there is a work shortage. If you don't have work for men who report in the morning, you can send them home but you'll have to give him four hours' pay in lieu of notice. Better be sure that individuals have work ahead. Therefore, before scheduling it is required to estimate the work content exactly and thence the required manpower. The wrong estimation leads not only to losses but also to legal complications.

Merits

• Workers can be sure of either work or their minimum pay.
• The scheduler or employer will carefully plan the work ahead, since he is worried of penalty for no-work otherwise.
• Legally valid agreement, so good relation exists between the employee and employer.
• Better forward planning

Demerits

• Workers when come for the work and if it is not provided they become restless and loose interest in working.
• Reputation is lost, if 'no-work' happens several times.
• Workers when sent for no-work, and paid for four hours of that day, they may not get any work for another four hours. Good workmen therefore, will not show interest to work under such scheduling practices because of the uncertainty.