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22/04/2009 09:04:12
Re: Balance leave calculation

Good morning,

I tendered my resignation letter on 03/02/2009. This coming 02/05/2009 will be my last day service with my company. I still have a balance leaves of 9 days, and I would like to claim it as cash instead of offset my notice periods. According to my HR, the balance leave that I want to claim as cash will be calculated like the formula below:

(Monthly salary/ 26) * balance leaves = Total claimed

When come to calculate the unpaid leave of employee, the formula for calculate the total deduction of salary is difference.

(Monthly Salary/ number of working days of that month) * Unpaid leave applied = Total deduction of salary

I feel this is unfair because our company do not have any employee hand book to refer and also never state in the contact.

1) Is it right my company follow the labour laws?

2) Can the unpaid leave calculation and the claim leave calculation different from each other without state in the contact?

3) What can I do if the above case is not right according to labour laws?

4) How many days my salary should paid by company after my contact is terminate?

5) What can I do if my salary is not paid after the periods?

Please help to advice the above questions. Your kindís advice I will appreciate it.

Thank you,

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KL Siew
22/04/2009 09:48:32
1. You mean to say it's unfair to be paid more. Your HR's formula is correct and you get more than the formula for calculating unpaid leave. Better sit down and do some arithmetic to find out.

2. Under the Employment Act, payment of salary on termination of contract is as follow:

"20. Payment on normal termination of contract.

The wages, less lawful deductions, earned by but not yet paid to an employee whose contract of service terminates in accordance with section 11(1) or of section 12 shall be paid to such employee not later than the day on which such contract of service so terminates..."
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22/04/2009 11:03:55
This is my opinion.

Monthly Salary = the month salary = Base Salary

Rate per day = Base Salary / 26 day
Rate per hour = Base Salary / 208 hours

If employee would like to encash, it will be based on calendar day in a month. So, if May is 31 days, then the calculation as follows:-

Balance Leave Encashment = (Base Pay / 31 days) * Leave Balance.

Alternatively, you should refer to the employment agreement, how to compute the overtime rate as a guideline.
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