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Jaycee
18/02/2009 12:35:51
Re: Contract Staff & Commission Entitlements

Hi Siew,

Appreciate your feedback as per below:-

Case 1: My boss is looking into engaging a contract staff for 3 months. Salary payable at $2300 per mth

1. Does he entitle Annual leave? If yes, how should we pro-rate?

2. Sick / Hospitalization leave entitlement - is it compulsory ? Should we state the sick leave 14 day p.a and 60 days respectively, even the contract is only 3 mths? Does this apply to even 1 month contract as well?

3. If the contract staff does not utilised the Annual & Sick leave at the end of contract, is it compulsory to pay him in monetary?

4. With his salary exceeding $1.5k, he does not entitle OT claim, unless provided by employer?

5. Say his official working hours is- 5 days, 9am-6pm (inc 1 hr lunch). The OT claim apply, if exceeding 44 hrs per week (as per act) or as long as he work exceeding 8 hrs per day?

Case 2:
My fren is a Project Sales Exe and joined Company A since June 07. She was transfered to another Company B, own by the same mgt, in Oct 08 without any letter of transferring given. Does she still entitle the commission from Company A, as the comm payout is yearly?

Thanks.
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KL Siew
kl_siew@yahoo.com
18/02/2009 13:19:20
With a salary of RM2300, the employee is not covered by the EA and all the conditions stated by you should be clearly stated in the contract. The quantum should be agreed up by the parties, like how many days of leave, sick leave, working hours, notice period for termination of the contract, duration of contract and so on. If everything is clearly stated, future disputes can be avoided.

2. You see, that's the problem. Everything should have been properly discussed and agreed upon first. Now, who is to tell whether she is entitled or not entitled to that payout? Anyway, I don't think A is going pay, do you?
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Jaycee
18/02/2009 14:31:16
Hi Siew,

Thanks for the reply.

Case 1: Just to clarify, what you mean is, since he's not covered by the EA, thus those AL/ SL/ Hospitalisation leave are not compulsory and it's up to employer descretion?

Case 2: Very likely. However, the problem is, the management didn't conduct any discussion or getting mutual agreement prior to the transfering. Basically, my fren was just given a letter stating that she will be transfer to another company and ask her to acknowledge on the receipt. Is there anything that she can do on it?

Thanks.

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KL Siew
18/02/2009 15:19:10
Yes, at the employer's discretion to state at the time of interview what sort of benefits they will get.

2. She can still ask company A for her commission for the sales concluded before she joined company B. Who knows, she may get it.
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