What is the ruling on dealing with a worker who is negligent in his duties, and is it permissible to hit him or deduct a portion of his salary as compensation for the losses he causes?

It is not permissible to strike a worker, as that constitutes aggression. However, it is permissible to reprimand and rebuke him in proportion to his shortcomings, without insulting or slandering him. It is also permissible to deduct a portion of his wages commensurate with his negligence, with experts consulted to determine the amount. Forgiveness is better, as Allah says: "And let them pardon and overlook. Would you not like that Allah should forgive you?" And He says: "And whoever is patient and forgives – indeed, that is of the matters [requiring] firm resolve." And the Prophet, peace and blessings be upon him, said: "Allah increases a servant in nothing but honor by his forgiveness."