8/14/2008 10:02:18 AM
Re: Salary Deduction

Dear Sir,

We have a staff caused a total loss of USD 200 to the company due to her own negligence.

Under such circumstances,
1. can the Company deduct her salary in 4 months installment basis for repayment due to her negligence?
2. what does the Act says in matters like this?
3. do we need to get any indemnity letter from the employee concern to effective this deduction?

Appreciate your prompt reply
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KL Siew
8/14/2008 11:46:35 AM
On deduction of salary, Section 24 of the Employment Act has this to say:

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.

Please read that Section 24 for details. You can be asked to return the money if he or she complains about the deductions. Consult the Labour Office to make sure.
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