I have a query regarding the deduction of wages under the Labour Laws. A company has recently bought over another company (together with its employees) due to financial crisis of the latter. The terms of the contract of employment of the acquired employees remain the same. However, recently, the company has decided to introduce a new salary scheme which is performance-based known as "the commission scheme". Which means that the acquired employees will no longer receive a fixed salary as in the employment contract. They will be offered an amount of salary on a per day basis plus commission. The problem is that even if the acquired employees were to work for 30 days in a month, they won't be able to get the same amount of the previous salary. In other words, there will be a huge deduction (more than 50%). The company is aware that under the 1955 Act, even if deductions were to be allowed by the D.G, it cannot exceed 50% of the existing salary. Also, the new salary is "less favourable" than the old salary. Be that as it may, the company is justifying its action by saying that although there has been considerable deductions, it is introducing a commission scheme. There has been proof that there are employees who earned more salary under this new scheme as compared to the old fixed salary because of the commission received. Besides, the employees also expressed their interests in accepting the scheme irrespective of the deduction in their wages. Therefore, it can be said the scheme is beneficial to both the company and the acquired employees. However, not all employees have the same level of diligence and understanding. Therefore, some employees may benefit from this commission scheme and some may not. The less diligent employees would rather receive a fixed amount of salary every month than an amount of salary based on their performance. 

What's your opinion and advice on this matter? Should a letter be written to the D.G asking for permission with regards to the reduction and also the introduction of the commission scheme? Or is it a blatant breach of the fundamental terms of the employment contract as well as the Malaysian Labour Law?

Thanks.