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Salary Deduction For Severity and Misconduct Action

Tue, 18 Nov 2014 12:15:01 PM  (Last updated: Tue, 18 Nov 2014 02:16:26 PM)

Hi Sir, 

All of our staffs are not covered under employment act 1955 as their salary are above RM2000. 

Recently our company has come out a new rule which is salary deduction for severity and misconduct action. 

The details as below:

Highly Serious – The misconduct causes direct monetary loses to the company, the staff involve activity of crime related under Malaysian Law, exposing company intellectual property and company information to external party, part-time work that involve our customer, partner and competitor . This will resulted in immediate sacking.

High – The misconduct related to the job performance and indirectly causing monetary loses to the company; This resulted warning letter to be issued. Salary deduction is not more than RM300. More than 2x committed, 3rd will be sacking.

Moderate – The misconduct is related to the basic working attitude of the personnel. Example of such exceeded lunch / break time allocated, repetitive time punctuality problem (appointment with customer or colleagues) without justification or inform other related party). All related misconduct that do not incurred monetary loses to the company.  A warning letter with salary deduction not more than RM100.

Low – The misconduct included of appointment not schedule in our company calendar. Warning letter will be issued if the misconduct more than 5x in 6 months. No salary deduction, but withhold the monthly claims.

For your info, our employment contract is not stated about this and this is new rules. However, it is stated for any unclear or new rules, it is subject to management decision. 

Question: May I know is it legal action (Salary deduction) to take for employee whose not covered under employment act? 

Thank you.

KL Siew
Tue, 18 Nov 2014 02:16:25 PM

It might be OK if it is done after holding a DI. If you do it summarily, it may be a bit high-handed. Better consult the IR department and get some advice.

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