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21/05/2010 22:35:37
Re: Employee bear the lost of company asset

A company has issue the same clauses of Appointment Letter to their employee as below and found out recently is it against the Employee Act. They encounter enquiries from Labour office when their ex-employee lodged a complaint on their salary deduction due to missing items in the shop. The company wrote this clause is to protect the company and to prevent employee from stealing of goods from their shop and the employee was explained on this clause and they accepted it. Is is not right to let the staff bear the cost of losses for the shop if their basic is less than RM1500. If those salary more than RM1500 does the Employee Act has different say?

1) Basic Salary less than RM1,500
2) Employee must bear the losses or bear the cost for Lost items in their shop and will be deducted from their monthly salary

1) How to re-issue a new Appointment Letter to all the other existing staff without going against the Employee Act?
2) What would be the best way for a win win situation for both parties - employer appointment letter content without going against the Labour law ?

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KL Siew
22/05/2010 11:06:15
1. Since you have found out such deductions were not lawful, such clauses will not be included in the appointment letters in future.

2. Pilferage by employees do occur quite often. Big and small businesses do face with such problems. What the employer can do to protect its interests is to have more effective control and supervision.
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