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JC
01/04/2009 13:22:52
Re: Final Salary

We had employed an expatriate and he is on monthly wages. When he resigned, we calculated his pay at 26 days but we were told by our Senior Manager that the termination pay should be based on 30 days. Is that stated in employment act?
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KL Siew
kl_siew@yahoo.com
01/04/2009 14:29:40
Yes, should be based on the number of days of the month like 31 days for March, 30 days for April and so on. It is not stated in the EA, it is just simple arithmetic. 26 is used for something else like overtime, sick leave pay and so on under Part 12 of the EA because of the formula there.
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JC
01/04/2009 16:00:36
Thanks. It is inconsistant though when ordinary rate of pay is defined and we use it for everything then when it comes to termination, we use another formula.
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KL Siew
01/04/2009 16:29:57
As a matter of interest, if an employee with a salary say RM3000 per month and he worked for half a month from 1st April to 15 April, for me he will get 3000/30 x 15 = 1500. How much will he get if you use 26 for the calculation?
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JC
01/04/2009 17:18:33
You are making a point that we will be paying out more, I understand that but when we use a defined ord rate of pay for all calculation, seems like an inconsistancy to change. And if the month had 31 days, the amount will be lesser. I am just looking from that point. Thanks
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