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23/11/2009 14:28:14
Re: Contract Service Salary Below RM1.5K

Dear Sir,

We will have local employees under 6 months contract service with salary below RM1.5k per month. Below are some questions been troubled me...

1) Does contract service not bound with Employment Act 1955?

2) Within the contract service period, should employer contribute EPF & Socso, give annual leave, sick leave and the public holidays as same as the permanent employee? Can the employer forfeited the contribution, those leaves and holidays?

3) Can we give directly the six months contract service without giving any probation period?

4) If employee terminate before the contract due, can employer claim back the balance service period left? Is it the same action if the identity been exhanged?
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KL Siew
23/11/2009 16:14:03
1. I don't see any reason why it is not bound under the Employment Act. Consult the Labour Department.

2. Why not? To make sure, you better consult EPF and SOCSO about it.

3. The method of termination of service should be clearly stated in the contract.

4. I don't know about this. Ask your company lawyer.
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