Ramen chain says action taken on controversial salary deductions

Restaurant chain Kanbe Ramen said it has taken remedial action following its controversial policy of salary deductions for supposed infractions by staff members.

“We want to reassure you that we have already taken action to address these concerns.

“Moving forward, we remain dedicated to providing competitive salaries and maintaining the trust you have placed in us,” it said in a Facebook post today, without explaining the measures being taken.

The restaurant chain specialising in Japanese pork broth ramen has outlets in Mont Kiara and Tun Razak Exchange, both in Kuala Lumpur.

Food at Kanbe Ramen

It has drawn controversy after a list of penalties for various infractions was circulated online.

This entailed salary deductions for things such as taking medical or unpaid leave, smoking during work hours, and receiving negative one-star reviews on online platforms.

These penalties can go up to RM500 and may be imposed on individual offenders or spread across the entire staff including those who were on holiday at the time of the offence.

Netizens denounced the penalties as excessive and demanded authorities to take action.

List of salary deductions that went viral

Human Resources Minister Steven Sim has reportedly said salary deductions apart from those specifically allowed under Part IV of the Employment Act 1955 are illegal, and staff disciplinary issues should be addressed through measures such as an inquiry.

According to a New Straits Times report on Feb 20, he urged affected staff members to lodge a report to the Labour Department for action to be taken.

An offence under the Employment Act is punishable with a fine of up to RM50,000 upon conviction.

In its statement today, however, Kanbe explained the deductions are only a part of a compensation package that includes a salary above the market rate and pre-granted incentives.

“The discussions have focused on deductions within these incentives.

“Our intention with this system is to create a fair and equitable environment where our employees are appropriately rewarded for their efforts. All new hires are fully briefed on this system during the recruitment process,” it said. - Mkini