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Deduction of OT for outstation work

steevan1000
Member
Tue, 08 Sep 2015 04:20:09 PM  (Last updated: Sat, 19 Sep 2015 10:19:01 AM)

Hi,

i just found this web very useful & i have questions regarding OT

my current company deduct the traveling time (includes going to & return from) taken to reach outstation work place. OT is only given to time used when actually performing the task. Below is an example :

from KL to Penang : estimated 3 hours traveling, depart @ 12.00pm

actual working time : estimated 4 hours, arrive @ 3.00pm

Penang back to KL : estimated 3 hours traveling, reach @ 10.00pm

so total OT deducted is 6 hours, is it lawful to do such deduction?

secondly, company also implement a maximum OT limit per hour which is only RM 8.00. if the normal OT rate calculated using the formula (basis /26/8) is more than the set limit, the worker will only get RM 8.00.

is this maximum OT limit lawful according to labour law?

KL Siew
Administrator
Tue, 08 Sep 2015 08:43:44 PM

That does not seem to be reasonable. Can't you negotiate for at least some out-station allowance to compensate for it? Antway, you may bring the matter up with the Labour Department see whether they can give any help in the matter.

steevan1000
Member
Wed, 09 Sep 2015 02:40:55 PM
Which part you refer to as unreasonable? Deduction of traveling time or limit of OT rate per hour? Regarding the deduction of traveling time, reason from management is because they are not doing anything during travel so not entitled for any payment.
KL Siew
Administrator
Wed, 09 Sep 2015 03:17:15 PM

To me, the working time should start at the time he leave the company to the work place. But for the OT rate of RM8, I can't say because I did not know how it was arrived at. Try calculate the hourly rate by (salary/26/8) x 1.5 see whether it fits or not. If it comes out more than the RM8 is not enough.

steevan1000
Member
Wed, 09 Sep 2015 06:08:29 PM

after calculation its definitely more than RM 8 set by company upper management.

Example of one worker OT :

total OT hour : 86 hours

basic salary : RM 2000.00

hourly rate : 2000/26/8 = 9.6153846 = RM 9.60

normal OT rate : 9.60 x 1.5 = RM 14.40

total OT amount : 86 x 9.60 x 1.5 = RM 1238.40

maximum OT limit : RM 8.00

actual OT amount : 86 x 8.00 x 1.5 = RM 1032.00

difference : RM 206.40

by refer to above calculations, this worker can only get OT at the rate of RM 8.00 instead of RM 14.40

he lost RM 6.40 per hour to company because of the maximum limit is only at RM 8.00

company upper management only pay him the total amount base on RM 8.00 per hour rate

(note : company never verbally or by any written form say that the OT fixed flat rate is RM 8.00)

KL Siew
Administrator
Wed, 09 Sep 2015 06:53:33 PM

It looks like there is good reason for you to bring the matter up with the local Labour Department then.

steevan1000
Member
Sat, 19 Sep 2015 09:51:22 AM
Another questions , Is the same regulations & labour law apply to foreign workers? Is it allowed under the law to hv different OT calculation for local & foreign workers?
steevan1000
Member
Sat, 19 Sep 2015 09:51:22 AM
Another questions , Is the same regulations & labour law apply to foreign workers? Is it allowed under the law to hv different OT calculation for local & foreign workers?
KL Siew
Administrator
Sat, 19 Sep 2015 10:19:01 AM

The Employment Act applies to both local and foreign workers.

  This topic is closed