TOPIC V

LABOUR COSTING (2ND ELEMENT OF COSTING)

Labour costing is a major element of cost of most undertakings. There should be proper accounting and
control of labour cost.
In controlling labour cost the problem is complicated by human elements.
This is so because labour consists of different individuals each with different mental and physical
capacity and each with different characters.
Proper control of labour cost consists of the following:
i) Satisfactory system of recruitment, selection, training and placement of workers to the job.
ii) Satisfactory method of labour remuneration.
iii) Healthy working conditions in the line with legal requirements and competitive undertakings.
iv) Method of assuring efficient labour performance e.g. good wages overtime pay bonus pay etc.
v) Personnel department (Human resource)
It’s concerned with recruitment, discharge and transfer of labourers.
Requisition for new personnel are made to this department, on receipt of such requisitions personnel
officer proceeds to recruit persons for employment from various sources. Examples are employment
agencies, technical and educational institution, advertisements on media etc.
On engaging a new worker the personnel office will make out an employee’s card. This card will show
full personal details of employee, particulars of previous employment, wage rate payable, employment
number, transfer details, emergency address, emergency address, wage rates etc.
The purpose of this card is to record essential information about the worker during his employment in
the firm.
The following departments are also informed about employment of a new worker.
i) Department where worker has to report for duty.
A notification is made that the worker is expected to report in such a date.
ii) Payroll department also involved of new employee, names, name of former employee, clock
number, date of commencement etc.
iii) Time office for recording the attendance etc.
Assignment
a) Job evaluation
b) Merit rating
c) Employees time keeping including methods of time keeping.
Job evaluation
It a technique used to determine the work of each job relative to other jobs.
Its main purpose is to ascertain the comparative labour work of different jobs.
Merit rating
It’s a technique for determining any addition that should be made to an individual’s normal wage rate to
reward him for above average service.
We may distinguish between jobs evaluation and merit rating.
Job evaluation means to evaluate the worth of a job irrespective of who does it. Merit rating evaluates
employees who do particular jobs.
METHODS OF LABOUR RENUMERATIONS
Characteristics of satisfactory labour remuneration system
The following factors should be taken into consideration before establishing a wage system:
i) System should be such as to produce the best quality and quantity of work.
ii) It should be satisfactory from the point of view of both employer and employee and reward
should be related to effort.
iii) The scheme should be clearly defined and intelligible to workers i.e. workers should be able to
calculate wages on their own, if workers don’t understand the system, they may view it in
suspicion.
iv) It should guarantee a minimum living wage to each worker irrespective of his efficiency.
v) No maximum amount should be placed on amounts of individual earning.
vi) Matters beyond their control should not affect their earnings; they should e.g. be compensated
for power, failure, machine breakdown etc.
vii) It should reduce labour turnover and absenteeism.
viii) System should be flexible so that changes should be introduced if necessary.
ix) System should be capable of operation without excessive clerical work. Those methods should
be avoided which demand much detail of recording time quantity of output etc.
x) If possible system adopted should be:
a) Which is in use in that particular industry/locality.

Methods of labour remunerations.

There are two basic methods of remunerating labour, these are:
a) On basis of time spent in the factor( time rate)
b) On basis of quantity of work done(piece rate)

Most of the systems of remunerating labour are a combination of or modification of these two systems.
i) Time rate system
Under this heading we consider:
a) Straight time method/flat time rate
Under this system work is paid for time spent and no consideration is given to volume of production
during that period. He may be paid hourly, daily or monthly basis.
When payment is made on hourly basis, the earning is equal to: Hours worked x rate/hour
Wages agreement usually provide for higher rates for overtime work.
b) High day rate
In this method the time rate of the workers is fixed at a higher level than the usual rate of payment. The
object of this system is to provide incentive to workers while retaining simplicity of the system.
The management that pays high wage rate also demands high level of performance and efficiency.
c) Graduated time rate
Under this system wages are paid at time rate which vary and adjusted periodically according to an
index.
Applicability of time rate is that suitable for the following types of situations:
a) Where quality of work is more than quantity.
b) Where output is beyond workers control e.g. in processing industries, the flow of work is
regulated and depend on another person’s work.
c) Where output cannot be measured in quantitative terms.
d) Where work is being done on small scale so that close supervision is possible.
e) Where worker is a learner (new in the field)

Advantages of time rate system

i) It’s simple and calculation of wages is easily understood by workers.
ii) The work avoids over speeding and tends to concentrate on quality.
iii) The remuneration is certain and workers have a feeling of security.
Disadvantages
i) It offers no positive inducement to workers to improve performance as it doesn’t eliminate
inefficient workers.
ii) The resultant decrease in productivity tends to increase cost per unit.
iii) Supervision cost is high as workers paid on time basis need greater supervision.

1. Piece rate system

Under this an employee is paid a fixed amount per unit produced irrespective of fixed and earnings are
calculated as under:
Earnings = No of units produced x rate per unit.
Its applicable where:
i) Output of individual worker can be easily measured.
ii) Where work is of a standardized and repetitive in nature
iii) Where there is an urgent need to increase the volume of production.

Advantages
i) As remuneration is in direct proportion to workers effort the method provide strong incentive.
ii) It simplifies costing since labour cost per unit is easily known in advance.
iii) Due to high rate of production overhead cost per unit is reduced.
iv) As piece rates are fixed after careful time and motion study, the system provides a sound basis
for standard control and costing.
v) Strict supervision is not necessary since workers themselves are interested in maximizing their
earning through output maximization.
vi) Method is simple and easily understood by workers.

Disadvantages
i) Setting of piece rates on basis of time study involves a considerable amount of work at the
outset and during operation of the scheme.
 ii) Lays too much emphasis on quantity of production and ignore quality. Alleged system of
inspection and quality control becomes necessary to ensure that quality standards are
maintained.
iii) Workers feel insecure as no minimum amounts of wages are guaranteed.
iv) System is usually opposed by trade unions as it creates grid and unhealthy rivalries born out of
jealousy among workers.

WAGE INCENITVE SCHEMES

Both time rate and piece rate systems have their own merits and demerits
Incentive plan attempts to combine the good points of the system.
The primary purpose of incentive plan is to induce workers to produce more to earn a high wage and at
the same time to reduce unit cost.
Various incentive plans includes:
i) Simple/ single piece rate.
Under this system each worker is paid same rate irrespective of his level of output.
1. Differential piece rate
It tries to take a clear cut distinction between efficient and inefficient workers.
More than one piece is fixed on a subscale and different piece rate are applicable for different ranges of
output below and above the standard.
Higher piece rates are offered to workers whose output exceed standards and lower piece rates are
offered to workers whose output is below standards.

Conditions under which differential piece rates may be useful are:

i) Where production is standardized
ii) Where the aim is a continuous maximum production
iii) Where workers output can be measured
iv) Where operators continue at same job for a long period
v) Where standards time required to complete a job can be measured accurately.

2. Premium bonus plan

These plans are based on the principle that financial advantage arising out of efficiency of workers is
shared between employers and employees in agreed proportion.
Some features common to most premium bonus scheme rate are:
a) Time wages are guaranteed
b) As efficiency increases wage cost per unit reduces
c) As production increases labour remuneration per hour also increases but not in proportion to
production.
d) As employers share benefits of efficiency, efforts are made by him to improve methods and
equipments so as to facilitate an increase in production.
Examples of bonus price plan are:
a) Halsey premium plan
Under this scheme, a standard time for each job is fixed. If actual time taken is equal to or more than
standard time, the worker is paid at time rate thus time wages are guaranteed under this plan. However,
if the job is completed in less than standard time, worker get wages for time worked plus a bonus equal
to 50% of time saved.

Earning = Time taken x Time rate + ½ (Time saved x Time rate) or ½ (Rate x Hours saved)
b) Halsey Weir scheme
This method is precisely the same as Halsey premium except that in this, bonus is equal to 30% of time
saved.
c) Rowan plan
Earning = x Rate x Hours saved

NB: Hours saved = Actual hours taken - standard hours

It’s similar to Halsey plan except in bonus calculation. Amount of bonus is that, production of wages of
time taken which the time saved bears time allowed.
d) Group bonus plan
There are certain jobs or operations which are required to be done collectively by a group of workers.
In a continuous production e.g. work flows in sequence or in assembly; work for television, radios, shoes
etc. A team of work is engaged in various operations as such it becomes necessary to introduce a bonus
scheme for collective efficiently of the group as a whole.
The intention is to create collective intention in the work. Total bonus determined is distributed among
members of the group in equitable basis.

The following bases are commonly used:

a) Equal distribution. If skills and grade of workers in the group is uniform.
b) On basis of time wages of each worker.
c) In proportion of time rate of each worker where each has devoted equal time.
d) In a fixed ratio determined in advance on basis of merit rating.

Advantages
i) Encourages co-operation and team work among workers
ii) Reduces absenteeism because absent member weakens the group and most workers do not like
letting down their team.
iii) Calculation of wages requires less clerical work as it involves recording of output of the group
and not individual worker.
iv) Supervision work is reduced because less efficient workers are taken care of by efficient ones.
v) Indirect workers can also be included in the scheme by allocating such workers to the group.

Disadvantages
 i) Group bonus scheme is unfair to efficient and hardworking workers of the group.
ii) Difficulties regarding fixing amounts of bonus and basis of its distribution among workers in the
group.
iii) There may be discontent when workers in the group are of widely varying skills and efficiencies.

INCENTIVE PLAN FOR INDIRECT WORKERS

As its difficult to measure the output of indirect workers, they are generally excluded from incentive
plans. But indirect workers are equally essential for production as direct workers and as such full
increase in production cannot be obtained without a full co-operation of indirect workers therefore
incentive plans may be introduced for indirect workers either to achieve the efficiency of the services
they provide to direct workers or to induce foremen and supervisors to increase departmental efficiency
and so reduce cost. Thus payments of bonus to indirect workers when it’s being paid to direct workers
will prevent labour earnest.

Basis of payment of bonus to indirect workers

i) Where indirect workers serve a group of direct workers they may be paid a bonus on basis of
performance of the group of indirect workers whom they serve e.g. maintenance workers
attached to a particular department.
ii) When indirect worker provide a general service e.g. sweeping, store keeping etc, bonus may be
paid on the basis of output of the whole factory.
iii) On the basis of job evaluation, and merit rating of indirect workers.
iv) On some arbitrary basis like enhanced day rates so as to include an element of bonus in the rate
itself.

Advantages of providing bonus to indirect workers

i) Creation of team spirit and healthy atmosphere of work.
ii) Maintenance of efficiency of important services like plant repair and maintenance, material
handling, store keeping etc.
iii) Elimination of labour earnest and reduction in labour turnover
iv) Overall improvement in efficiency thereby contributing to cost reduction.

Co-partnership and profit sharing

Co-partnership or co-ownership is a scheme whereby employees are given an opportunity to share in
the capital of business to receive a part of the profit that accrues to their share of ownership.
Some companies provide loans to employees to buy shares while others reserve a specified number of
shares for allotment to employees.
Under the profit sharing scheme, the workers are paid in addition to wages a predetermined share of
profits of the undertaking.
A co-partnership scheme will be arranged in conjunction with a profit sharing scheme whereby bonus to
workers is to be left as investment to company.
The investment may be inform of special shares not carrying a voting right but entitled to a fixed
dividend but it may be inform of loan carrying a higher form of interest.
Advantages
i) Workers management relation improves and workers take keen interest in management of the
concern.
ii) It helps to reduce labour turnover as many companies provide for a minimum period of service
as conditions for participation in this scheme.
iii) This scheme creates in workers a genuine desire to work whole heartedly for the concern and
make proper utilization of materials and machines.

Disadvantages
i) Bonus accruing to workers may not be based on individual efficiency.
ii) There may be certain amount of distrust among the employees of the company.
iii) Workers share profits in good years but not bear their share of loss incurred in other years.
iv) Apportionments of profits on suitable basis present difficulties.
v) Trade unions do not favour the principle on the ground that it’s mischievous move on par ton
capitalist to create dis- unity on ranks of working classes.
vi) A share in the profit is paid to workers at long intervals say 6 months, 1 year. In other words
rewards come long after the effort.

Labour related cost

Cost of labour do not only includes actual payment to employee but also other indirect labour costs
which are related to organization labour force. These costs are:

a) Cost of labour turnover

Refer to change in composition of work force in the organization. It’s the rate of change in composition
of force during the period.
It’s a common feature in most enterprises where workers will leave employment and workers join to
some extent, it may be welcome as it creates vacancy for internal promotion and also new workers bring
new ideas from other organizations.
However, costs are incurred when there is turnover and therefore for cost control purposes labour
turnover must be minimized. It should be appropriately measured and report prepared regularly and
given to management showing causes as to why the employees left the organization and causes will be
addressed by management.

Causes are classified into:

i) Avoidable causes
ii) Unavoidable causes

i) Avoidable causes of labour turnover

These are causes that the organization can be able to prevent. They are within prevention limit/control
thus control can be implemented in them to reduce labour turnover.
They include:
a) Gender discrimination /unhappy relationship with workers
b) Lack of job security
c) Poor remuneration
d) Poor working conditions
e) Lack of promotional opportunities
f) Union problems
g) Lack of incentives/motivation.

ii) Unavoidable causes of labour turnover

These are causes an organization cannot control or prevent. They are personal in nature and control
cannot be affected on them.
They include:
a) Marriage
b) Death
c) Retirement
d) Incapacitation/insanity
e) Organization change
f) Resignation
g) Personal dislike for a job and environment
h) Discharge on disciplinary ground
i) Divorce and separation
j) Pregnancy where employee leaves voluntarily.

Effects of labour turnover

A certain amount of labour turnover will take place to a limited extent. It may be welcomed. This is
because it creates vacancy for internal promotion and maintains motivation, high for young and
ambitious employees.
Furthermore new employees bring new ideas and new methods of performing duties from other
organizations.
Labour turnover is expensive and should be minimized as it results to increase in cost of production.
The cost of labour turnover includes:
i) Preventive cost
ii) Replacement cost

a) Preventive cost
These are costs incurred to keep the workforce happy to satisfy and prevent or discourage them from
leaving the organization.
They include:
 a) Cost of personnel management incurred in maintaining good relation between management
and employees.
b) Cost of welfare activities e.g. transport.
c) Cost of medical services
d) Extra bonuses and incentives to discharge employees and control them from defecting to other
organizations.

2. Replacement cost
These are costs incurred in replacing existing employees who have moved. They are costs of making
sure that the new employees are comfortable.
They include:
a) Cost of training, new employees.
b) Recruitment and selection
c) Loss of output due to time gap in obtaining new employees
d) Loss due to inefficiency of new employees
e) Cost of accidents due to lack of experience
f) Cost of scrap and defective work by new employees
g) Cost of tools and machine breakdown due to poor handling.
Reduction and control of labour turnover
It can be reduced by taking actions on avoidable causes. Labour turnover cannot be fully eliminated and
some turnover will always occur due to personal reasons therefore control can only be affected by
acting on avoidable causes.
The following steps can be taken:
a) Providing conducive working environment
b) Having impartial and sympathetic attitude on personnel management.
c) Introducing financial and non-financial incentives or skills
d) Providing suitable and satisfactory wage
e) Providing promotional opportunities
f) Encouraging labour participation in management to avoid disputes
g) Introducing effective grievances handling procedures
h) Strengthening welfare measures.

IDLE TIME
This represents time lost by employees during production. It’s the difference between the time for
which employees are paid and the time they actually spend on production i.e. its time paid for but no
production was obtained from employees e.g. time lost when production is interrupted for machine
maintenance, time lost due to shortage of materials etc.

Causes of idle time

1. Production causes
They arise from interruption of normal flow of production activity caused by machine breakdown, power
shortage, time lost due to waiting for instructions, raw materials or tools etc.
These causes are related to production and are usually controllable through proper planning, strict
supervision and regular machine maintenance.
2. Administration causes
Arise due to decisions made for the purpose of managing and controlling the organization.
This decision arises as a result of abnormal conditions e.g. economic depression.
During this period, managers may decide to maintain existing labour force in anticipation of economic
recovery. This creates idle time since employees may not be productive.
3. Economic causes
Arise from economic conditions which affect the market for the company’s product e.g. competition or
seasonal nature of demand. In such cases production may not be evenly distributed throughout the
year.

Treatment of idle time

For accounting purposes, idle time is classified as:
a) Normal idle time
It’s that time waste which cannot be avoided and it has to be part of labour, its time loss which is
expected e.g. time lost between completion of a job and commencement of another.
Treatment of normal idle time
It’s usually treated as a factory overhead i.e. indirect labour cost if it can’t be identified, if it can be
identified, its treated as cost of labour since it has to be included in amount paid to employees.
b) Abnormal idle time
Arise due to reasons not connected to usual routine of manufacture and the employees are responsible
for its occurrence.
Arise due to inefficient planning of an organization like time lost due to waiting for instructions,
tools/machine breakdown, shortage of materials etc.

Treatment of abnormal idle time

The amount should be written off to the costing profit and loss account for the time period.
Control of idle time
Idle time arising from controllable causes should be analyzed and responsible for them should be set so
that appropriate measures can be taken.
The following steps should be taken:
a) Strict supervision should be incorporated in day to day routine
b) Regular machine maintenance should be done
c) Raw materials, tools and instructions should reach in time to avoid time wasting
d) Production should be properly planned to avoid inconvenience.
e) Management should offer alternative products which they will produce during off reasons.
Dummy workers
These are those names of workers who appear on the wage sheet or payroll but not do exist in the
organization.
They are not actually employed but their names are included to draw their wages.
Supervisors and other employees include names of dummy workers and draw their wages through a
forged signature. They are also known as ghost workers.
To prevent and detect dummy workers in an organization the following procedure should be adopted.

i) Time records
Where mechanical devices are not used gate keeper should record time of arrival and departure of each
worker.
A similar record should be maintained by foreman. This maintained by gatekeeper and foremen.
However if mechanical devices are intended to be used time recording clock should be installed at the
factory gate. Each worker should have a card to put in slot of gate slick to record date, time of arrival
and departure.
iii) Piecework records
A card should be given to each worker. On it should be recorded no of pieces produced or
manufactured and should be signed by -------------------- and store keeper to who finished goods are
delivered.
Workers identification should be ensured in order to find out that they are genuine workers.
Preparation of wage sheet on the basis of information available form time record or piece work record
wage sheet should be written down to compute gross wage of each employee.
Other deductions are made which include: contribution to a proficient fund, wage advance fines etc.

Question
Mwangi produces the following units for months of Jan to April.
Month No of units produced
Jan 960 units
Feb 1000 units
March 880 units
April 1300 units
There are two systems in the company i.e. the first system of a flat rate of shs 5 is paid per unit
produced. The second unit of 2 shs is paid for first 480 units. Thereafter the rate increases by shs 2 for
every additional 240 units produced during the month.

Required
i) Wage for Mwangi for each month under the two systems.
Flat rate amount of wage
Jan 960x5 = 4,800
Feb 1000x5 = 5,000
March 880x5 = 4,400
April 1300x5 = 6,500
20,700

ii) Flexible rate

Jan 480x2 = 960
480x4=1,920 2,820
Feb 480x2 = 960
480x4=1,920
40x6 = 240 2,120
March 480x2 = 960
400x4=1,600 2,560
April 480x2 = 960
480x4=1,920
340x6=2,040 4,920
12,480

Question
Two carpenters Oluoch and Kamau are employed by modern furniture ltd. They are paid a basic rate of
shs 5 per hour. Overtime is paid at double the normal rate while time saved/allowed for assigned
piecework is paid for at 60% of basic rate. Normal working hours are 40 hours. During the week, Oluoch
and Kamau are assigned 30 chairs and 50 coffee tables respectively. Time allowed is 12 hours for each
chair and 1 hour for a coffee table. Oluoch worked 45 hours including overtime to complete chairs
assigned to him while Kamau completed assigned tables in 38 hours but worked full week i.e. worded 2
hours on another task. On inspection at the end of the week, 5 chairs and 10 coffee tables were found
to have a defect, however the carpenter are paid for all units completed including defective ones.

Required
i. Amount of bonus payable to each carpenter
ii. Gross wage payable to each carpenter
iii. Labour cost per unit for good production.

Oluoch Kamau
Time allowed 60 hours 50 hours
Time worked 45 hours 38 hours
Time saved 15 hours 12 hours
Overtime worked 5 hours
Bonus Oluoch 15x2.5=37.5
Kamau 12x2.5=30
50 x 5=2.5
100
Gross wage Oluoch Kamau
Regular wage 40x5=200 Regular wage = 40x5 200
Overtime 5x10=50 Bonus payable 30
Bonus payable 37.5 Gross pay wage 230
Gross wage 287.5

Good unit in production

Oluoch =30-5=25 Kamau (Tables) 50-10=40
Labour cost per unit on good production
Oluoch (chairs) 287.5 Kamau (Tables) 230 = 5.75
25 40

June 2007 Question 4

Briefly explain the factors that should be taken into consideration when designing incentive scheme.
Zawadi ltd is a small scale company which manufactures a range of plastic commodities. In order to
manufacture a lunch box, the following manual processes are required:
Processes time required per box (min) wage rate/per hour in shs
1 15 65
2 25 50
3 10 40
4 30 35
5 20 30

The weekly production target is 7200 lunch boxes packed in a carton each containing 12 lunch boxes.
The company working week has 40 hours.
Required
The number of casual workers required for each of the processes.
Labour cost incurred per week to manufacture 7200 lunch boxes
The following information was provided by supervisor Bidii Ltd.
Task of moulding flower pots is assigned two casual workers Moraa and Mogaka.
Moraa is required to mould 189 flower pots while Mogaka is required to mould 204 flower pots for
which time allowed is 20 min and 15 standard min respectively.
Basic wage rate is 400 per/hour for each casual workers.
Foe every hour saved a bonus is paid out at 50% of basic wage rate.
1
Overtime hours are paid at an additional 1 /3 over the basic rate.
Basic working week has 42 hours for the week ended 16 th March 2007 Moraa completed her assignment
within 45 hours while Mogaka completed within 39 hours. Upon completion of this assignment Mogaka
carried out other duties for another 3 hours. Although 6 flower pots moulded by Moraa and 4 by
Mogaka were scrapped all moulded flower pots were paid for.

Required
For each of casual workers calculate:
i) Basic pay
ii) Overtime pay
iii) Bonus pay
iv) Gross wage
v) Cost per flower pot moulded

a) Level of output of workers

- Efficiency of workers
- Amount to be paid to workers
- Skills of the workers

b) 7200 = 3 workers per week.

40x607
Process 1 3 workers = 2400min Process 2 7200x25=75
Process 1 7200 lunch boxes = 2400min 40x60
15 min
7200x15 45 lunch boxes
2400
45 = 3 workers
15
Process 1 7200x15 = 45 workers process 2 7200x25=75 workers
40x60 40x60
Wage 45x65=292.5 wage = 75x50=3750

Process 3 process 4
7200x10 =30 workers 7200x30= 90 workers
2400 2400
Wage =30x40=1200 Wage = 90x35=3150
Process 5 7200x20 =60 workers
2400 Mogaka
Wage 60x30=1800 Time allowed = 63 hrs
Labour cost incurred per week Time worked=39 hrs
2925+3750+1200+3150+1200=12825 Time saved 24 hrs
Overtime -
Bonus
Question 2
Mogaka Moraa
Basic pay Basic pay
Basic wage rate = 400x42=16,800 Basic wage = 400x42 = 16,800
Bonus 2,400 Bonus 3,600
Gross wage 19,200 Overtime 1,600
Gross wage 22,000

Mogaka Moraa
Time allowed 51 hrs 63 hrs
Time worked 39 hrs 45 hrs
Time saved 12 hrs 18 hrs
Overtime - 3 hrs
Bonus pay 12x50% 400 = 2,400 Bonus pay 18x50% 400 =3,600
Cost per flower pot moulded
Mogaka = 19,200 = shs 96 Moraa 22000 = sh 120.22
20 183

Wage procedure
They are:
Proper records should be kept on time spent by employee or units completed by means of clock
card/unit cards.
These records should be taken to wage system where labour cost sheet are prepared which show time
spent on job by the worker.
Overtime hrs, unit made and which cost centre should be charged with this amount.
Preparation of payroll which is the list of employees and amounts payable to them, it shows gross pay,
net pay, deductions and amount due.
E.g. Payroll preparation
Payroll Name Hrs Units Rate Gross NSSF NHIF PAYE Net
No. worked produced pay pay

Amounts calculated can be paid in form of cash or deposited in the workers bank account.

Prevention of wage frauds

i) Assign different members of staff various stages in preparation of wage sheet and actual
payment.
ii) Payroll should be given to the accountant and accountant should be responsible to make the
deductions.
iii) Payroll should be scrutinized by manager and certify that it’s correct.
iv) The cashier should not be involved in preparation of payroll.
v) Only the exact amount for payments to the workers incase they have paid in cash should be
withdrawn from the bank.
vi) Every employee should sign on receipts of his or her pay.
Unclaimed wages should not be left