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Elvy Loh  
Tue, 24 Apr 2007 06:21:10 PM  (Last updated: Tue, 24 Apr 2007 08:12:43 PM)

Good Evening,

The company want to deduct an employee salary due to under performance. I have read through the employment act, but found nothing that can support the mentioned reason that i provide.

In that case,

1. Is it lawful to deduct the employee salary if he or she under perform ?

2. How if the the company and the employee have come to an agreement that the employee accept the deduction on his or her salary, Is it alright for the company to proceed with the deduction? If yes, what kind of action we need to do to protect the company from any legal action taken by the employee in the future?

3. If the employee is not covered under EA, what shall we do in order to dedcut the employee's salary?

Looking forward for your reply ASAP. Thank you very much for your assistance.


Elvy Loh

KL Siew
Tue, 24 Apr 2007 08:12:43 PM

Of course you don't find anything to support your case because any deduction not according to Section 24 is not lawful. See below:

24. Lawful deductions.

(1). No deductions shall be made by an employer from the wages of an employee otherwise than in accordance with this Act.

If the employee is willing to pay the company just let him pay from his pocket after receiving his salary but do not deduct it from his salary. Anyway deducting employees' salary for matters other than in accordance with the law is not advisable and I don't how you can be protected.

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