Salary deductions: Employers told to follow proper procedure

PUTRAJAYA – Employers have been urged to follow proper procedure when deducting workers’ salaries as stipulated under the Employment Act, said Human Resources Minister Steven Sim Chee Keong.

Speaking to reporters after the ministry’s Chinese New Year Kesuma Madani programme, he said disciplinary issues are not an excuse for employers to cut workers’ salaries, adding that an internal inquiry process must take place before imposing disciplinary action.

“I have emphasised that employers cannot arbitrarily deduct an employee’s salary according to Section 24 of the Employment Act except for authorised deductions such as EPF (Employees Provident Fund), Perkeso (Social Security Organisation) and income tax.

Sim said he took note of the social media post that recently went viral regarding a salary deduction claim, urging the relevant individuals to lodge an official report through various channels provided by relevant ministries and agencies such as the Labour Department (JTK) for further action.

“JTK will take follow-up action after reports are lodged.  However, we will also conduct spot checks to see for ourselves,” he added.

The social media post claimed that a restaurant chain imposes fines on workers who take sick leave and other penalties for behavioural violations, including salary deductions. – BERNAMA / pic TMR FILE