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15/09/2011 12:03:36
Re: Salary's Deduction due to mistake

Dear Mr Siew,

Would like to seek your advice on deducting staff's salaries due to mistake made by staff. My company is doing medical claims and any mistake done by staff in assessing the claim wrongly will lead to financial penalty to the Company. The management want to deduct this penalty from the staff instead, making references to cashier job in retail in which staff salary being deducted if any short-balance at end of the day. Not only the staff did the mistake will be deducted, but all the manager/supervisor will share a portion as well. But is this will be allowed just by just signing the contract with the staff for their consent? Thank for the advice.
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KL Siew
15/09/2011 12:40:04
Although such practice may not be in line with Part 4 of the Employment Act, what the company is doing may serve sort of reminder to staff to be more careful in doing their job. Just be a bit more careful that's all.
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15/09/2011 12:11:08
Sorry KL Siew to disturb again and thank for the earlier advice.

May I know what the potential liability to the Company for not complying to Part 4 of the Employment Act, the Company might need to refund the deduction to the staff if they complain to Labour Court/Industrial Relation?

On separate note, the penalty can huge sum (>RM10k) and may be deducted for years from the staff's salary. So, if the staff resigned, can the Company still claim from the staff?

Thank Again.

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KL Siew
15/09/2011 15:29:17
I really cannot go into specifics. The best thing you can do is to consult the Labour Department with more details about the deductions that have been made so far. If you are covered by the Employment Act, that department may be able to look into the matter.
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