Employers can't deduct salaries as punishment – minister

 

A restaurant chain that allegedly imposed salary deductions for various mistakes and misconduct may have run afoul of labour laws.

The matter came to light after the ramen restaurant’s purported list of “wrongdoings” such as taking medical leave or going to the toilet too frequently was circulated online, along with penalties up to RM500 that may be imposed on individual employees or the entire staff including those on holiday.

Human Resources Minister Steven Sim Chee Keong reportedly told the New Straits Times that such practices violate Part IV of the Employment Act 1955.

“Employers cannot deduct salaries except for items allowed by law, such as Employees Provident Fund, Social Security Organisation and income tax.

“Salary deductions cannot be used for other purposes, including so-called disciplinary measures. Disciplinary measures must be addressed through a proper procedure of domestic inquiry,” the minister reportedly told the English-language daily.

He reportedly urged those involved to lodge a report to the Labour Department for further action to be taken.

The name of the ramen restaurant chain was not identified in the NST report yesterday.

Apart from the examples given, Part IV of the Employment Act also allows for salary deductions for overpayment of salaries in the last three months, deductions to pay trade union or cooperative society fees, repayment of salary advances, and various other circumstances – but not as disciplinary action.

Section 24(1) stipulates “No deductions shall be made by an employer from the wages of an employee otherwise than in accordance with this Act”.

An offence is punishable with a fine of up to RM50,000.

List of penalties

According to the list that was widely circulated, staff members who take medical leave are penalised RM100 per day, and there is also a RM500 penalty for failing to inform about their absence at least two hours before the shift starts.

Those who are deemed to be using the toilet too frequently during work hours are fined RM100, and those who use the toilet during busy periods are fined RM500.

Staff members who smoke or vape during work hours, including toilet breaks, are fined RM500.

Negative one-star reviews on Facebook and Google for the restaurant could lead to a RM500 fine, and so would engaging in actions that damage the shop’s reputation.

There are also penalties for other infractions such as absenteeism and lateness, mistakes in relation to customers’ orders, using handphones during work hours, forgetting their uniforms or name tags, bullying, and sexual harassment.

The preface of the list explains, “All responsibility lies with everyone. It also applies to staff on holidays that day. If not reported, all these penalties will be evenly imposed on all staff.

“(The objective is) to improve teamwork and act responsibly.”

The list has drawn backlash on social media, with many netizens calling for authorities to take action.

The NST quoted the restaurant saying that it had lodged a police report but refused to divulge details of the report. - Mkini