What is the ruling of Islamic law regarding the request to deduct 500 Riyals from the salary of an offending employee (200 Riyals for the value of the shirt and 300 Riyals as a penalty for his assault, insult, and failure to execute orders)?

It is permissible to retaliate for insults and verbal abuse in kind, but without lying, slandering, or declaring someone an unbeliever. The insulter should not extend the abuse to the other party's parents or similar. He should refer his case to someone who can provide justice, so that the aggressor pays for the price of his shirt. However, taking money as a punishment for an insult is not permissible. It is permissible to deduct from his money if he refuses to do a hired work.