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28/09/2009 02:08:02
Re: Employment Act 1955

The Employment Act 1955 is covers employees with wages not exceed RM1500 per month. So, can the company demote and reduce the salary for a staff (for poor performance) if this staff join the Company with basic salary of RM2000 per month?
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KL Siew
28/09/2009 15:27:33
When an employer employs an employee (whether covered or not covered by the Employment Act) for a certain position, the employer has the right to expect a certain basic level of diligence and efficiency from the employee. If the employee who really performs below expectation and various measures have been taken to get him to improve but failed, then I think the employer may be justified to take those drastic punitive actions. As I said reduction of salary and demotion are heavy punishment that can be disputed or challenged by the employee. Furthermore, the employee who got a salary reduction and demotion can appeal to the Labour Department if he is covered the EA. If he is not, he has the right to walk out from his job and claims that he is dismissed and makes a claim for reinstatement under the Industrial Relations Act. This is what they called "constructive dismissal".

So, for your question, there is no simple "yes" or "no",
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