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Lihong
09/10/2017 12:11:03
Re: Employment Act (URGENT)_hope you can help me

The Employment Act 1955 states the following:

Section 24. (2) It shall be lawful for an employer to make the following deductions—
(a) deductions to the extent of any overpayment of wages made during the immediately preceding three months from the month in which deductions are to be made, by the employer to the employee by the employer’s mistake;

Case-1 Example in Oct 2017 ER wants to recover preceding 6 months(April to Sep 2017) Shift allowance which is paid.
But as per Employment Act Deductions to the extent of overpayment of wages made during immediately preceding three months in Oct 2017 means (July to Sep 2017) only can be deducted in Oct 2017 ,then what about the recovery to be done from EE FOR (April to June 2017) should the amount to be carried forward to next month for recovery in next month or amount to be waived off by ER?



Section 24. (8) The total of any amounts deducted under this section from the wages of an employee in respect of any one month shall not exceed fifty per centum of the wages earned by that employee in that month.

Case-2 Example in Oct 2017 ER wants to recover preceding 6 months(April to Sep 2017) Shift allowance which is paid.
But as per Employment Act Deductions to the extent of overpayment of wages made during immediately preceding three months in Oct 2017 means (July to Sep 2017) only can be deducted in Oct 2017,what if the preceding 3 months (July to Sep2017) Deduction to be made is more than 50% of gross then can ER Proceed further with recovery in Oct 2017, should the balance carry forward to Nov payroll which already exceed the 3 months mentioned in section 24(2)?
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KL siew
klsiew.my@gmail.com
09/10/2017 15:29:59
The law is quite clear, can deduct the preceding three months. Mistake before that cannot be deducted and all deduction should not exceed 50% of the salary of the month (Oct as your example)
.
To avoid the 50% in Oct, I don't know whether you can do it differently like In Oct you deduct for July over payment, Nov you deduct for August over payment and Dec for September over payment.

It would be advisable to consult the Labour Department and get an official view.
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