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Can Company deduct salary from resigning employee who had caused losses ?

Mon, 18 Feb 2019 04:16:23 PM  (Last updated: Mon, 18 Feb 2019 04:42:54 PM)


There's one employee who has nature of work as offshore worker.

Company has new offshore project in Sabah and had applied for him Permit to Work for Sabah in November 2018 (required by Sabah's authority if non-sabahan come to work there). The permit cost is RM1800++.

He refused to go to Sabah, with an excuse that his wife is pregnant and waiting for due date. Company considered his situation and hold his permit for next job.

On January 2018, company instructed him to go offshore. He refused again with excuse that his wife just delivered and no one is taking care of his wife.

On February 2018, he tendered his resignation letter. Company decided to deduct the permit cost from his last salary because company has applied for him, but he refused to go and caused losses. But he said company has no right to deduct his salary and asked company which clause in the employment act stated company can deduct the permit cost.

Please advise.

Thank you.

KL Siew
Mon, 18 Feb 2019 04:35:24 PM

Where is original place of work before asked to go to Sabah?

Deductions of wages, is in Section 24 of the Employment Act and according to the section, such a deduction may not be lawful.

Mon, 18 Feb 2019 04:38:32 PM

His base is in Kemaman, but he knows that he need to travel to other place if required because already stated in the employment letter.

KL Siew
Mon, 18 Feb 2019 04:42:54 PM

Give a call to the Labour Department and talk to the officer about such deduction and get an official ruling.

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