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Deduction of Salary due to implement new salary structure

kandice
Member
Thu, 09 Oct 2014 09:33:13 AM  (Last updated: Thu, 09 Oct 2014 07:12:55 PM)
Hi mylabourlaw admin, I had signed contract with my company for 4 yrs on dec 2011 and work for my company nearly 3 yrs. Based on my contract, there is listing that yearly salary review would be carried out after at least 12 months of employment and increment would depend on my performance and the sole and absolute discretion of company. The review rate of my salary shall be not less than RM 50 and not more than RM 150.Thus, my salary from RM 1250 during 6 months probation raise to RM 1500 after probation. Every year end there is a raise with RM 100, means Dec 2012 raise to RM 1600, Dec 2013 raise to RM 1700. Company did give us signed these increment letter as proven.However, start on May, my company implement new salary structure and based on that structure my basic being cut off to RM 1500. They just verbally introduce the new salary structure without give us any letter or memo to sign that we agree with it. My colleagues did complaint and discuss with company about this issues.Is it legal for them to change our salary structure that different from what we signed in the first contract? Are they breach of contract? I want to resign by now if they did but I need to compensate to company or not? It is due to based on my contract, if I did pre-mature termination of contract, I need to pay the compensation not less than RM 20000 and not involve myself in this industry or related activities similar of my company not less than 5 years.Thank you
KL Siew
Administrator
Thu, 09 Oct 2014 11:40:14 AM

Since the staff have discussed the issue of salary restructure with the company and got no satisfactory results, I think you may have to bring the matter up with the Labour Department. Bring along the old contract and discuss the issues with the department. Hope that they may be able to help out.

kandice
Member
Thu, 09 Oct 2014 05:53:54 PM
Just now I went to labour office already. Their answer fail me… They said, they only can help me report my company about this issue to pay me back the salary however, I still need to fulfill my contract. I wonder why because is my company breach of contract, and how come the contract still valid?
KL Siew
Administrator
Thu, 09 Oct 2014 06:11:16 PM

Yes, since the new structure has not been implemented yet, there is nothing for you claim at the moment. I think you can tell the company if they breach the original contract by reducing your salary, you could resign without having to pay back any compensation. If you are still unsure what to do, you can consult lawyer about the legality of the contract.

kandice
Member
Thu, 09 Oct 2014 07:12:53 PM
The new restructure salary already start during this year May… Thus, they already breach of contract.

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