Salary deductions: Follow proper procedure, HR minister tells employers" PUTRAJAYA, Feb 22 - 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. "l 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 (J TK) for further action. "J TK 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. Based on the Case Study above, answer the following questions: Clarify with ONE (1) EXAMPLE how Employment Act 1955 protect workers' rights regarding salary deductions and why it is pivotal for employers to follow proper procedures? (10 Marks) Discuss TWO (2) potential consequences could arise for employers who disregard the proper procedures for deducting workers' salaries, as outlined in the Employment Act 1955? (8 Marks) Explain TWO (2) ways employees can adopt to protect themselves from unjustified salary deductions and disciplinary actions imposed by employers. (10 Marks)

Salary deductions: Follow proper procedure, HR minister tells employers" PUTRAJAYA, Feb 22 - 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. "l 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 (J TK) for further action. "J TK 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. Based on the Case Study above, answer the following questions: Clarify with ONE (1) EXAMPLE how Employment Act 1955 protect workers' rights regarding salary deductions and why it is pivotal for employers to follow proper procedures? (10 Marks) Discuss TWO (2) potential consequences could arise for employers who disregard the proper procedures for deducting workers' salaries, as outlined in the Employment Act 1955? (8 Marks) Explain TWO (2) ways employees can adopt to protect themselves from unjustified salary deductions and disciplinary actions imposed by employers. (10 Marks)

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Salary deductions: Follow proper procedure, HR minister tells employers"

PUTRAJAYA, Feb 22 - 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. "l 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 (J TK) for further action. "J TK 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.

Based on the Case Study above, answer the following questions:

Clarify with ONE (1) EXAMPLE how Employment Act 1955 protect workers' rights regarding salary deductions and why it is pivotal for employers to follow proper procedures? (10 Marks)
Discuss TWO (2) potential consequences could arise for employers who disregard the proper procedures for deducting workers' salaries, as outlined in the Employment Act 1955? (8 Marks)
Explain TWO (2) ways employees can adopt to protect themselves from unjustified salary deductions and disciplinary actions imposed by employers. (10 Marks)

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