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Charles Siew
08/01/2010 11:07:33
Re: Allowance Cut

As part of company cost-down. The company suggested to cut / reduce the employees' transport allowance.
This transport allowance is stated in the employment contract and is subject to deduction depending on their attendance.

1. Can the reduction be made on this allowance?
2. Can this reduction be made on foreign workers?

Thanks and regards,
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KL Siew
08/01/2010 14:35:03
Whether it is salary cut, allowance cut or any other deductions, the issue is best be discussed between the workers and the employer. There are many ways to cut cost. If the cost cutting is justified, then it may be alright. If the workers are not satisfied with the employer's action they may have to seek help from the Labour Department.
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