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05/03/2009 15:15:34
Re: OT for salary > RM1500

Dear Sir,

If he is a techinician level with the basic salary above RM1500. He need to operate the machine & maintain machinery. Under the contract employment, he can claim OT.

1) Refer to the subsection 2(2) of 1st Schedule, does he classify as Manual Labour?
2) If Manual Labour, company is compulsory to paid based the rate at 1.5/2.0/3.0 from the (salary + allowance) ? any maximum OT rate apply to / must follow salary cost?
3) if company refuse to paid OT, can the OT convert to leave ?
4) if he is not the Manual Labour, can company issue a memo to revise the condition of the contract employement & request employee to agree if company intend to reduce the OT Rate / Cancel their OT. Are Company allow to do so under the act ?
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KL Siew
05/03/2009 17:28:52
1. In my opinion he is in the manual labour category since he is operating and maintaining machinery.
2. OT must be paid in accordance with the EA;
3. I don't think you can use leave to substitute OT payment.
4. For employees not covered by the Employment Act, the employer, with the agreement of the employees, may fix any overtime rate he wants. But if you say you don't want to pay overtime at all, I don't think you can get the employees to work overtime for you.

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06/03/2009 16:35:50
Thnks a lot.

But why Engineer with salary >RM1500 do not fall under "manual labour' ??Both of them are practically doing the same job just different with the title of Techinician Vs Engineer ?

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KL Siew
06/03/2009 18:06:37
Simply put, it is a matter of knowledge. An engineer may be able to do the work of a technician in repairing something but a technician may not be able to do the work of an engineer. Just don't trouble yourself too much over this, the Labour Department can quickly tell you who is and who is not 'manual labour'.
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06/03/2009 18:17:36
Thank you so much...
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