If this attendance allowance is mentioned in the employment letter or company policy that stated in a way the company can withdraw this allowance anytime? you can actually withdraw the allowance. State your reason and update your company policy. If such statement is not stated anywhere, speak to your employees but in current business climate, you can choose to go ahead to withdraw without their consent. If any employee is unhappy and files a case, pls justify your decision to labour office. If you lose the case, all you need to do is back pay the allowance. Right now, employees has to allow companies to cut cost in order to save jobs. Not all the time company are at fault or unable to withstand an employees concern in IR court, but provided you do things in clear, transparent and consistent manner.