Malaysia: Labour dept warns employers against salary cuts without prior approval

• Jul 18, 2019

KUANTAN: The government has warned employers against making salary deductions without informing their employees or without prior approval from the Labour Department of Peninsular Malaysia (JTKSM).

JTKSM’s labour standards division director Mohd Asri Abd Wahab said the department had received complaints of misappropriation of employees’ salaries without clear consent or reason.

“Employers should honour the contracts as promised when hiring including foreign workers.

“There has been a case where an employer has promised no pay cuts for accommodation since it is provided free of charge. However, the employee’s payslip shows a deduction without the consent of the employee,” he said after launching the JTKSM 2019 Labour Education Programme here.

Asri said many employers did not take into consideration the incentive payments as overtime pay.

He said allowance and other payments should be taken into account as the basis of calculations to determine overtime pay rates.

“Employers should prioritise wages and workers’ rights to be paid according to labour laws,” he said.

Asri said those who committed the offence could be prosecuted under Section 43 of the National Salary Consultative Council 2011, where a fine of up to RM10,000 could be imposed on each charge.

Source: https://www.freemalaysiatoday.com/category/nation/2019/07/17/labour-dept-warns-employers-against-salary-cuts-without-prior-approval/